It’s a complex world, but most of us still manage to get on with it: whatever our job may be, we turn up every day and tackle the challenges that come our way.

When it comes to debt, though, it’s not so straightforward. Many people end up with serious debt problems they just don’t know how to deal with. Why is that?

• It could be because debt’s a complicated subject, full of unfamiliar terms and issues: repayment terms, APRs, early repayment penalties, and so on.
• It could be because we’re content to leave the details to the lenders. At the end of the day, it’s often tempting to assume that one set of terms and conditions is much like another – so all we want to know is ‘Can I borrow the money or not?’
• It could be because it’s just too easy to get credit – or at least it was until the credit crunch occurred. There are too many people who simply have too many debts: multiple credit cards, multiple store cards, an overdraft, a personal loan, a couple of hire purchase deals…
• It could be because we leave it too long before we look for debt advice.

In short, it’s easy to see how so many people who can cope with life’s other challenges still have a hard time coping with debt.

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Image courtesy of Stephen Barnwell.

I was in an “on-line forum” the other day when someone asked the question, “How do you increase your income?” The person asking the question was no longer working their “day-job,” and was seeking to make money in other ways.

This person was making a few dollars each week teaching kids how to play basketball, but was looking to make additional money.

The Solution

In order to increase your income, you must increase your value; “YOU” must become more valuable.

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Franklin ended the Way to Wealth with this ironic statement:

The people heard it, and approved the doctrine, and immediately practiced the contrary, just as if it had been a common sermon; for the vendor opened, and they began to buy extravagantly, notwithstanding all his cautions.

Franklin knew that knowing the right way to live is much easier than living the right way. Being industrious and frugal each and every day is a tough task, one that most people will never master. It takes an enormous amount of self-discipline and perseverance to become wealthy and successful. Most people who read these posts and the Way to Wealth will agree with the advice but will soon forget it and go on making foolish decisions. This isn’t going to change; people can’t be helped that don’t want to help themselves.

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The second section of the Way to Wealth imparts the importance of frugality. It isn’t enough just to earn money, you have to be smart about what you do with it. In this collection of sayings Franklin describes how a lack of frugality will cause financial ruin and describes the temptations that lead people to spend foolishly.

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