Personal debt is now at the highest level that it has been in history. Financial problems are the leading cause of a number of personal problems, such as depression and divorce. Think how much better you would feel should you be able to live a debt free life.
I’m deep in the middle of the mid-life years and for many of my previous years I knew nothing besides living in constant debt. The burden that put on my emotions, psychological well being and relationships was beyond measure and is something I never want to experience again. To help you avoid enduring the same pain that I did I am laying out the 7 steps (I won’t say they are easy) to debt free living.
1. Accept that change is neccesary. Keeping the same bad habits is going to keep producing the same painful results.
2. What’s your current position? Take an afternoon to write down your existing debts, what your current assets are, and how much money you have coming and going out every month.
3. How would you like your life to be? Be introspective and ask yourself some serious questions. Don’t spend time on little items but really ask yourself – What are my principles and values? What do I really want to get out of life? Whatever you answers are, keep focused on them and base all future decisions on them.
4. What options do you have? Everyday you’re faced with decisions which affect both new streams of income and how you spend your money.
5. Decide on your options. Evaluate the answers from step 4 and make the hard decision that need to be made. Second job? Internet business? Turning off cable TV? Use your cell phone less? These represent just a few examples of things you need to consider.
6. Make a plan of action. Having made your decisions, set them down in writing. Then you’ll have something to refer to when making day to day decisions that are necessary to meet your long term goals.
7. Monitor & celebrate your successes. Regularly analyze the progress you’re making and find ways to reward yourself for small successes along the way. Tweak the things that do not seem to be working. You’ll soon have financial freedom that that makes your old worries seem a lifetime away.
You must log in to post a comment.