Let’s talk about goals. But first we need to get real with ourselves.
Let’s assume you have personal debt. According to credit.com 80% of Americans are currently in debt of some sort whether it be student loans, credit cards, car loans, or home loans. My question for you is this; how does it feel? Do you like having those debts? Does it feel good to make payments month after month with those interest rates adding to the amount of money you owe? I will take a stab in the dark and say your answer is no, you do not like paying those bills every month. Wouldn’t it be nice to not have those payments? The average American carries over $15,000 in credit card debt alone! Imagine not having that account any longer. What could you do with that money?
I am writing this post at 8:25PM on Wednesday January 13th. I have been told that tonight at 10:59PM the Powerball lottery numbers will be chosen and someone, or a number of people, will win over ONE BILLION DOLLARS! I am sure a lot of you are dreaming about what you could do with that much money, and I am sure that in your top ten list of what you would use the money for paying off debt is not listed. Whether you win the Powerball lottery or not, I want to provide you with a strategy that will help you pay off your outstanding debts. The following is a list of some characteristics of debt-free people.
- They are wise. Debt-free people are not as concerned with their FICO score as they are with their net worth. While you are focusing on paying off your debt you should consider debt as being a very bad thing. Do not go into debt while you are trying to pay off debt. It is not wise and debt-free people are wise.
- They are patient. Debt-free people are focused and secure in their goals and their strategy and they do not fly by the seat of their pants. They wait patiently for their opportunity. You should not go into debt to buy Powerball tickets hoping to pay off your debts!
- They are not materialistic. You do not need the latest iPhone, especially if it will cost you paying off your credit card debt. You do not need to go spend $200 at the bar or at the newest restaurant in town. Never allow your need for materialism to get in the way of you being debt-free.
- They are willing to make sacrifices. You may need to sacrifice your morning Starbucks and make coffee at home in order to pay off a credit card earlier. You could save $250 a month by simply making coffee at home rather than buying your morning cup of joe at a local coffee or donut shop.
Set goals, make a vision board. Determine what you are going to spend all your money on when you are debt-free. Plan that dream vacation you will be able to afford when you don’t have all of those monthly debt payments to worry about and then stick to the principles above to get yourself out of debt and on your way to financial freedom!
At FIRMS we are dedicated to making America a better place by helping businesses stay open by assisting them in collecting debts owed to their business and helping the average American in debt by giving them useful tips and information to become debt-free.