Three Keys For Getting Out Of Debt
Getting out of debt gives you
a euphoric feeling, positively liberating.
It's a feeling you want with all your heart. The good
news is, with the three principles outlined in this
article, you can turn yourself in the direction of
financial independence and take control of your future.
That euphoric feeling will coming around sooner than
you think.
Before we get started, let's get started.
You read that correctly. The hardest part of any project
is often just getting started. There are 101 reasons
for procrastination, ranging from fear of success
to fear of failure. We can get overwhelmed by the
scope of large tasks. It's too much, it's daunting,
and we get daunted.
So here is the Pre-1 A step that will
get you started: set yourself up. You don't have to
start making calculations, you don't have to start
working out budgets, you just have to take a piece
of paper, a calculator or a software program, and
sit yourself down at a table. Once you're there, going
forward becomes easy. So many big things in our lives
take literally 10 minutes, but we invest them with
far too much worry and therefore never get to them.
Just getting set up isn't that threatening, so we
can do that. And once we've gotten set up, we've created
the momentum to carry us to the fulfillment of our
goals.
OK, now let's look at the three principles.
Principal number 1: Know Everything.
You've heard the saying, "knowledge
is power." It is especially true in getting out of
debt. You have to know exactly how much money you
earn, how much money you spend, how much money you
owe. It is simple mathematics, and the more detail
you have, the more control you have.
Gaining knowledge activates the brain.
Our brains work very much like a computer. When you
give a computer a task to complete, the computer keeps
on working at it until it gets done. So, too, when
we give our brains a job, they can perform amazing
feats. By knowing every detail of your finances, you
will be giving your brain the job of finding a solution
to your situation. It seems like it happens automatically.
Stay on top of the details of your situation, and
you'll find the answers coming almost by themselves.
Principal number 2: Spend Importantly.
Great people don't fear failure. They
actually appreciate it as a great teacher, so they
can improve in the future. Most of the time our debt
is a result of a failure of our spending systems.
We either do not pay attention to how much we spend,
or we just lose control of it. Let's face it, credit
cards are a very mixed blessing. Most often, we spend
huge amounts on things that are neither necessary
nor important. Let's look at this in more detail.
There are three types of spending we
do. First, there are necessities, such as groceries,
medical costs, clothing and shelter and so forth.
The second type is for those things that are important,
but not essential. They might include piano lessons,
membership at a gym, dinner at a restaurant with your
family, and other similar expenses. The third type
are those things that are neither important, nor essential.
These are luxuries, plain and simple: a Caribbean
cruise, a TV set the size of a small skyscraper, the
fanciest sports car, at the casino... you get the
picture. Notice which category is usually the most
expensive. Yes, the third type. By eliminating spending
in this area, at least until you are solvent, you
will help yourselves greatly.
I will add that it is a good idea to
give some money to charity, whatever little amount
you can afford. It may not make sense at first glance,
but giving charity does something very important.
It gives you a proper perspective on the value of
money. Even if you give just a few dollars, you will
come to view money as something to be used for important
purposes, not to be squandered on unnecessary things.
Principal number 3: Make It Easy
for Yourself.
Just as getting set up is the easiest
way to get started on any object, making smart rules
for how you spend is the easiest way to control your
spending. The main culprit here is temptation. If
spending is too easy, temptation has a lot power over
us. If we make it harder to spend, temptation will
fade away.
For example, if I left my credit cards
at home, and only had a few dollars in my wallet,
I would not be tempted in the least to buy that beautiful
new suit in the window. I wouldn't even miss it! Similarly,
when I have three credit cards, and two of them are
within my spending limits, temptation is much greater
than if I only had one credit card and I was already
at my limit.
Making it easy for yourself means keeping
yourself as far away from temptation to overspend
as possible. Effective diets happen in the supermarket.
If you don't buy those oversized cookies, you won't
have them and you won't be tempted by them. That's
why you should never go shopping when you're hungry.
Make rules that will keep you from spending on anything
that is beyond your budget. Use only cash for essentials,
close down superfluous credit card accounts. Make
it easy to stay the course.
Putting It Together
As you proceed in your journey towards
solvency, make sure that you stick to these three
principles. Constantly review your progress and keep
"knowing everything." This will allow you to create
and implement a surefire plan for getting out of debt
for good. Good luck!
Seth Lutnick is, in addition to being
a recording artist and concert performer, a personal
consultant with expertise in project planning. Visit
http://www.getitdone.biz for a fully detailed plan of How
to Get Out of Debt, and ideas and resources for
personal
a ction planning.
