You may be in a position where your personal debt is getting in the way of achieving financial freedom. My wife and I have been there done that. Once we learned how money works, we implemented a plan (with coaching) that would lead us to becoming debt free much faster than we had originally anticipated. Remember getting “debt-free” is merely getting to zero. You must have goals for your life and money after the zero point is reached. The bigger your goals the better.
Here’s what we did – and what you CAN do – in six simple steps;
- Keep your debt in check. If you have credit cards with outstanding balances, discipline yourself to use only 1 or 2. Any new charges must be paid off every month.
- Increase your cash. Find a way to come up with an extra $100 per month. By increasing your income by starting a business, with a side job and by cutting back on Latte’s or other non essentials.
- Focus on just one. With the extra $100 each month, apply that to your monthly payment on only one of your credit cards – the one with the smallest balance. For that one card you’ll be paying the minimum payment plus the extra $100.
- Continue the pattern. Once your first card is paid off, continue that method on your next card – the one with the next smallest balance. With each debt you pay off, apply the full amount you were paying on that debt (minimum payment + $100) to the payment of your next debt. As you pay off each debt, the monthly amount you are paying on the next debt will escalate….and the payoff will come quicker. Using this strategy -the more debt you have – the faster you will pay it off.
- Tackle ALL debt. Once all your credit card debt is paid off, continue the same methods with your car, school loan and mortgage debt. If you follow this procedure, you’ll be amazed at the shortened amount of time it takes to be completely debt-free. We were amazed!…and very pleased with this strategy.
- Now it’s time to build your wealth. Once you are completely debt-free, (which is really zero) take the monthly amount you were paying on your last debt and put that money toward investments. Get your money working for you now.
Remember; You don’t know what you don’t know and you won’t know until you DO
Have a Blessed Day;