Realistically one of the most important things that I can do to help my clients is help them find wiggle room in the resources that they possess to help them reach their goals. Sometimes it is realizing that there is no traditional wiggle room in the budget. Perhaps it may be that they may need to do some moonlighting or decide to sublet a room. Often times by taking advantage of wiggle room, one can begin to leverage the situation. Surprisingly, many times when it appears that there is the least traditional amount of room in the budget due to debt, etc. is when the greatest gains can be made by finding additional wiggle room. Let’s say that someone is able to find an additional $500/month by subletting a room or finding some additional work. It could be through this additional money, that they can pay off some debt and become eligible to refinance their home, when they were not able to refinance their home before. This lowering of interest rates reduces their payments each month by hundreds of dollars each month, which then can be further used to reduced debt.
It is funny, how within a year or so, there can be several instances where that $500/month could begin to translate into a significantly larger amount of difference in one’s life. If one continues along the course, the dividends can become even larger. Once debts are paid off, one may be able to focus on building assets that add more income and increase one’s wealth. Usually by the time the debts are paid off, one has significant resources to put towards building even more resources. All of this began with finding a little wiggle room and the discipline to stick with the plan. The initial actions needed to find this wiggle room may not be pleasant. In fact in America, privacy has come to be valued at a premium. One question that comes to mind: “Is our value for privacy preventing us from getting the things that we truly desire? It may be something that we need to examine.” Food for thought.
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