Jeffrey Strain
Faced with record high personal debt levels and ultra-low savings rates, it may be worthwhile for Americans to consider taking the hard way out of debt.
When people talk about getting their personal finances in order, they usually try to find the easy way to reduce debt and increase savings. There are a number of steps that you can take that are relatively pain-free and low-cost that will help get you on your way to a better financial position, but this is taking the long term approach. (Don't miss "10 Free Ways to Boost Your Financial Power") Little steps over a long period of time will add up to big amounts, but it's not the only way to achieve financial freedom. Another option is to take the hard route. Instead of making small changes, make big changes which can have a large impact. The advantage is that you can put a huge dent into any debt you might have or supercharge your saving rate, with large increases over a short period of time. Here are 10 hard ways to get your finances in order. 1. Downsize your house. Instead of buying the biggest house you can afford, live in the smallest house you can find. Sell your current house and buy one that is half the size or even smaller. Challenge yourself to find the smallest space that you can stand to live in. Take a chapter out of your college days and think one-bedroom or studio apartment (or a lot of roommates). Though it's not easy to live small when everyone around you is living large, your finances will be healthy and well in no time as those around you struggle to make their mortgage payments.
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