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Six Simple Steps to Reduce Personal Debt

Paying off your bad debt so you can build great wealth with only 6 simple and doable steps that i learned from one of my favorite Financial Gurus, Robert T. Kiyosaki.

When Robert Kiyosaki first business failed, he personally had over $1 million in debt that needed to be paid off. Those were hard times for him and his wife for which they are homeless and had to sleep in their cars.

Having that much debt as they did, coupled with the emotions of losing his first business, it would have been easy to roll over, get a good job, and give up on on the dream of building a successful business. It must be an awefully tempting to get back into the rat race of never-ending routine of working for money and paying bills.

Thankfully, they did not give in to that temptation. Instead they made a plan.

Using all what they had learned about money and how it worked, and looked for great opportunities to build their asset column—and eliminate their personal consumer debt—or what they called bad debt. By implementing this plan, they were completely debt free within a few years and on our way to financial freedom and in most cases all of us can be debt-free in 5-7 years.

The following are the six simple steps that they used which you can apply to eliminate your own personal debt. If you implement them, they will work. But again, discipline is a virtue most of us ignore. 

Step #1 – Lock it down

If you have credit cards with outstanding balances, discipline yourself to use only one or two credit cards. Any new charges must be paid off in full every month. Do not incur any more long-term debt. 

One of the main ideas from Robert Kiyosaki Rich Dad Poor Dad books is that if you take a loan personally, make sure it is small, if you take significant amount of loan, make sure someone else is paying for it. 

In my opinion, like every other aspect of life, risk management is essential. Always manage your risk before any course of action. if a deal sound too good to be true, it usually is. 

Step #2 – Up the ante

Come up with RM 150 to RM 200 extra per month thru proper budgeting and financial planning. If you have a good financial education and understand how to have money work for you, this should be relatively easy to do. If you can’t generate an additional RM 150 to RM 200 per month, then your chances for financial freedom may only be a pipe dream.

I would recommend that you keep track of your monthly spending. There is a lot of apps you can download and use for free on your Google Apps Store.

I personally use ” Expense Manager”.

 expense manager


Step #3 – Focus on one

Apply the additional RM 150 to RM 200 to your monthly payment on only one of your credit cards. You will now pay the minimum payment plus the extra money on that one credit card.

Pay only the minimum amount due on all other credit cards. Often people try to pay a little extra each month on all their cards, but those cards surprisingly never get paid off. Consistency and discipline is key.

Step #4 – Keep it rolling

Once the first card is paid off, apply the total amount you were paying each month on that card to your next credit card. You are now paying the minimum amount due on the second card plus the total monthly payment you were paying on your first credit card.

Continue this process with all your credit cards and other consumer-credit debt. With each debt you pay off, apply the full amount you were paying on that debt to the minimum payment of your next debt. As you pay off each debt, the monthly amount you are paying on the next debt will escalate. Hence, as you progress along, the less and less amount of debt you have and less and less of interest you have to pay.

Step #5 – Go big

Once all your credit cards and other consumer debt are paid off, continue the procedure with your car and house payments. If you follow this procedure, you will be amazed at the shortened amount of time it takes for you to be completely debt-free. Most people can be debt-free within five-to- seven years.

Step #6 – Build your wealth

Now that you are completely debt-free, take the monthly amount you were paying on your last debt, and put that money toward investments. Build your asset column.

That’s how simple it is. Simple but not easy.

P.S …

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Thank you and i wish you a good life.

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So what is that one cursed sentence that makes you a boring person?

“I don’t mind”

Have you ever been dumped because the person you were trying to do so much for and be nice to all the time, thought of you to be boring? It must have hurt and ached to have been quit on by the one you loved, all because you were trying your very best to be the nicest thing since sliced bread. Well guess what, being ‘nice’ all the time is overrated and makes you a boring person. That is probably the root cause of one of the most common cliche of all, GIRLS LIKE BAD BOYS, bad boys are unpredictable and lively. But then, we are not recommending anyone to go BAD!.


Being ‘nice’ doesn’t mean going with the flow all the time!

 What is it about you that others find attractive? And here, by “attractive” we do not mean only romantically – there have to be some engaging qualities in you that make people likes you, that make they want to be your friend, to hire you, to be like you and of course, to like and love you. These qualities are what make you unique and interesting. Plus, we are living in an era of distraction, we get distracted almost every second, by Facebook, twitter, Instagram and a million of other things. Therefore, it is important to be “attractive”. Good news is, you don’t have to be good looking to be attractive, you have to be you.

 People might like you for your conversation skills, shared interests and hobbies, and because you are all heart. However, being a caring person has got nothing to do with not having a voice of your own. If you are the kind of person who thinks that a relationship only works when you go with the flow, and you ignore you own thoughts and likes to do so – then you are heading down the road to bitter breakup and will be a labeled a boring person. [1]   Nobody likes a boring person, that is the reason why we have a multi-billion dollar industry focused on killing BOREDOM that is the entertainment industry.

 An ‘I don’t mind’ attitude tells the other person that you have no mind of you own.

 Imagine someone asking you, what’s the best option for dinner? You shrug and indicate that the other person can go ahead and choose; you are all right with anything. As a onetime scenario this is fine, but if this is an oft repeated scene in the drama that is your life – then your ‘I don’t mind” attitude is making you one boring person. [2]

 In a relationship, it’s good to disagree every now and then. It’s even okay to have a few fights and then agree to disagree. Nodding your head to everything, being a yes man or woman and portraying yourself as someone who is okay with just anything and everything the other party wants is just dull. Being nice all the time takes the fun out of any relationship – be it as friends or romantically. And it makes you a boring person.

 Being a “YES-MAN” makes for unhealthy relationships.

 How can one be okay with everything? The answer is, no one can. However, in a bid to be nice or rather to be thought of as nice, you may be stifling your wishes and dreams and going with the flow. It may be to keep your significant other happy, or trying to be just another cog in a well-oiled machine at your workplace. Whatever be the reasons or the situation, the ‘I’m okay with anything’ attitude of yours will not get you far.

 Firstly, the person or parties that you are doing this for, may start resenting you for not having the courage or conviction to make your own decisions, in any most company, decisiveness is a highly valuable  trait if you want to climb higher in the corporate ladder. You will be perceived as a pushover and this projected niceness of yours will not earn you any brownie points but rather makes you a valuable errant boy.

 Secondly, if you are deliberately being fine with anything and everything, after a while this act of yours may start to wear you down and the very relationship that you are trying to strengthen with this niceness, will sour even for you! [3]

Take charge every once in a while.

 The solution to this is to get up and take charge every once in while. The next time anyone asks for your opinion, politely give it but don’t act like a know it all person, nobody likes a know it all! The next time you have the urge to say no, say it. The next time you feel like standing out like a sore thumb, do it!

 Be a nice person, but also be your own person, BE A BETTER YOU!.

 By being you, you will most definitely attract your very own “special one” whom will love you just as you are.


[1]Psychology Today: 5 Signs You Are Trying Too Hard To Please Everyone

[2]Tiny Buddha: How To Stop Saying Yes When You Want To Say No

[3] Bustle: 9 Signs Of An Unhealthy Relationship That Are Easy To Miss Because They Can Happen To Anyone