How much do you owe? Do you even remember what it’s like to have a positive net worth?
I sure don’t. That’s why I’m working on my hustle and telling people what I learn. I am so close I can spend it.
I remember graduating high school and getting my first credit card with a limit of $150. That was all the money in the world to me. I used my credit card sparingly and thought I was smart enough to never fall into their debt trap. My public education failed to teach me anything about money. It wasn’t until much later that I realized that it was intended to be that way.
Get Poor Quick Scheme #1: Paying the Minimum Balance
There are several types of debts and credit cards are the worst of them all. Credit cards should come with instructions, a class requirement, and testimonies from successful and unsuccessful credit card users. I for one, belonged to the unsuccessful credit card users during my college-dropout and back-to-college years. Despite my overconfidence in avoiding the debt trap, the one thing I could not plan for was the uncertainty of life.
Emotions guide behavior and you can guess what life had in store for me. I bought a car, fell in love, decided to travel, contracted a medical condition, and moved around place-to-place migrating to where the money was. Some months I fell short and threw it on the credit card. Sometimes the short months can extend to a long year or more. What saves me from becoming destitute is that oh-so-affordable minimum payment.
I found myself at one point in my life with over $25,000 of credit card debt and I was drowning. I learned to hate credit card debt and that was one of the greatest lessons of my life. When I finally understood the numbers and what was happening, I was so outraged. “How could they let this happen to people, this is criminal,” I lamented. I’m not the sharpest tool in the shed but I’m still a reasonably bright crayon. I got to work and used the “debt snowball” method to get out.
The debt snowball method is where I pay the minimum balance on all my cards except the one with the lowest balance. Then I put all the extra money I have after rent and food into that credit card. I do that every payday and avoid shopping and going out (more on this shortly). I chose the smallest balance because that small victory of paying that card off meant everything in the world to me. It was a goal I aimed for and achieved. Using that momentum, I cleared all $25,000 and still have no credit card debt today.
Get Poor Quick Scheme #2: Going Out to Eat
I love food with a capital L. I Love eating out. I Love all the flavors Los Angeles has to offer. Being the most culturally diverse city in the history of mankind, it offers delicacies that cross continents to get here. I admit I’m extremely spoiled in this respect and find myself not as impressed when eating at restaurants abroad. I jokingly told my partner that if I could eat out every day for the rest of my life, it means I’ve made it and become financially free. But I know that this “food ain’t cheap.”
Thanks to our old friend inflation, I can’t find a decent meal under $15 in my LA suburb. A dinner date easily runs me at least $40-$50 but my inner foodie allows over $100 for special meals. Not all my meals can be special just yet and I’m sure my waistline wouldn’t be able to tolerate it either. So whenever I’m doing my basic meals, I fallback on the slow-carb diet and meal prep once a week. Here’s my recipe:
- 8 Cans Organic Black Beans (Mild spicy preferred but regular works)
- 4 lbs. Grass-fed Organic Ground Beef
- 2 lbs. Chopped Frozen Spinach
- 4 tsp Cumin
- 2 tsp Oregano
- 2 tsp Smoked Paprika
- 8 tsp minced Garlic
- Salt to taste
Put the beans in a large soup pot. Add the spices, garlic, and salt and heat on high. Perform a taste test of beans and if good, add the frozen spinach. Next, cook the ground beef on a large skillet and feel free to add any seasoning you prefer. I like to use garlic powder, salt, and pepper. Break down the beef using a spatula to your desired size. Add the cooked beef to the soup pot. Stir the pot and you have yourself about 12-14 servings for the week at about $5 a meal. Personally, I allow food to cool and then package them in vacuum seal bags. This allows me to freeze, microwave, and extend life in the refrigerator. Making my food easy to make is key in maintaining a successful diet and saving me tons of money and time.
Get Poor Quick Scheme #3: Shopping
I am never happy with second best. I pay that premium price for that dopamine hit I’ll get when I press the buy button. Trust me, I know what it’s like to buy things and it feels great. Everyone has their vices. Personally, I bought everything I ever wanted as a kid: top-of-the-line computer x2, Yamaha HS8 speakers with subwoofer, BMW, every game console, all godly in-game items, Valve Index VR Set, Canon professional camera and lighting, Rogue power rack with barbell and weights, Burton snowboard everything, designer clothing, and that’s just this year. I know that 90% of this stuff I didn’t need and barely use.
The strategy I use to prevent myself from overspending is that I made a habit of paying my credit cards off every morning. I’ve worked it into my routine where while I’m sitting on the toilet, I prepay all the things I charged the day prior. As I see my bank account shrinking faster than I’m getting paid, it’s a clear signal that I need to stop and wait. It helps me see how much money I have at the beginning of each day so I can plan appropriately and resist the 1-click-buy button on my Amazon app.
I follow the “pay yourself first” rule of saving. I always put 10% of my income into bitcoin every time money hits my accounts. I do this for both my business and personal accounts. I always pay myself first. Then I pay rent, utilities, debts, credit cards, go out to eat, and shop. So I can still partake in these get poor quick schemes for pleasure while still getting richer. Hope this helps!