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Do you know what it takes to live Debt Free? Let me enlighten you a little.
My Story started when we went from Six figures to the poverty line, virtually overnight.
After receiving some expert help we were able to put into play a plan that allowed us to pay off $88,000 in debt in 3 years on a $45,000 yearly income whereas previously, whilst making over $100,000 a year, we couldn’t make a dent in the very same amount of financial obligation.
Why is that?
Once we re-evaluated our needs versus wants and reduced the stress levels around how we live, we were able to manage our cash differently and make some way of life changes. As we made those adjustments, we developed a new set of specific qualities that are super important when it comes to being debt-free and also remaining that way.
While numerous aspects are usually in play, one of the most likely reasons we couldn’t make a dent in our debt originally was because our household had developed a behavior of overspending. We earned really good money, but we spent beyond our budget. I worked hard so why shouldn’t I have new shoes, new appliances, an expensive vacation?
You can succeed. You just need the right key.
The reason why I shouldn’t have those things was because I COULDN’T AFFORD THEM! That’s a very difficult thing for a proud person to say.
Anyway, what are some of the behaviors of people who are winning the debt-free race?
1. Don’t be normal!
Debt is normal, apparently! Individuals working towards being debt free completely understand that debt isn’t a tool to finance their lifestyle. They treat financial debt like a weight around their necks and they strive to have that weight lifted. It’s OK to be weird and do the exact opposite of what everyone else is doing. That’s what makes you unique.
2. Self-constraint
Someone who truly desires to get out of debt has the determination to walk past the sale of the day without making an impulse buy. They are smart enough to recognize buying something isn’t really going to remove their issues and make them feel better. Instant gratification now versus shopper’s remorse later – weigh up the purchase between Want and Need. If it is merely a Want – do you have room in the budget for it. If the answer is no – Walk Away.
3. “Keeping up with the Joneses” mentality.
Sorry – that’s an English saying but what it basically means is that – it really doesn’t matter if your neighbour drives a Ferrari and you drive a loser cruiser Mom Van. An emotionally intelligent individual believes in their plan does not care what others think of them. They don’t need to live life large just to be able to Tweet or Instagram how perfect life is. Chances are – it’s not perfect at all. (#soblessed). We really have no insight into our neighbours lives and so when we see new things arriving and that spark of envy ignites, instead of heading out to the stores to buy something bigger and better think instead – did they just get into more debt to have that?
4. Keep your eye on the Prize
Piece of cake? Debt-free living is the goal, so individuals who wish to achieve it are purpose driven. They set S.M.A.R.T goals (specific, measurable, attainable, relevant, and timely). They determine what they intend to do and draw up their plan to succeed.
5. Laser sharp focus and warp speed.
When you are completely DONE with being in debt you move at warp speed in the other direction. This means that once you start to free up each dollar to press into paying down debt, as one debt is finished you roll the payments into the next debt (Snowball technique). This way the speed at which you are paying off debt increases over time. You need to be all in. Try couponing, try finding sales for everything, shop at the dollar store and the Thrift stores or even look at a side hustle or second job.
6. Minimalism not Consumerism.
It’s stuff. Just stuff. As my Mom says – “You can’t take it with you”. Filling your life (and / or house) with stuff, no matter how expensive or pretty it is a road to no where. If you can’t be happy with what you have now (health, a roof, food on the table, gas in the car) why do you think more stuff will help? Money can’t buy happiness – you already know that.
7. Give it up or Cut it Out
Expensive meals out, going to the movies, cable TV, Triple shot Chai Mocha Lattes; these all cost a lot of money and they are WANTS not NEEDs. Learn to cook from scratch at home. Subscribe to a low cost TV provider (Netflix, Crave TV, etc). Sure – It’s not as good as the latest blockbuster but come on! Do you want to save money or not. Take a look at my earlier post on getting out of debt and staying out and budgeting for more info.
So – Do your really want to Be Debt-Free?
When you take a closer look you start to understand that you have been compensating (and over compensating) in areas of your life that just needed to be simplified in order to bring you happiness (or peace of mind – whatever works for you).Debt holds you back – you can’t fly free with a weight around your neck so, if you truly want to just be able to breathe again I suggest you take a read through the previous posts and start putting that plan into action.
Ready to begin your journey a debt-free existence? If I can do it you can do it too.
XO
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