Never before in history has personal debt been at such a high level. Financial problems are the leading cause of a number of personal problems, such as depression and divorce. Imagine the weight that could be lifted off your shoulders 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 pressure on my physical and mental health, relationships and emotions was immense and is something I never want to experience again. To help you avoid enduring the same pain that I did below I have laid out how to achieve debt free living in 7 (not necessarily easy) steps.
1. Realize you need to change. Doing the same things you’ve always done will only result in the same painful results.
2. What’s your current position? Take an afternoon to write down all your current debts, all your current assets (house, car, etc), 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. Example questions being - 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 make every decision from here on around those goals.
4. What are your options? Decisions present themselves everyday that affect both additional income and how your money is spent.
5. Decide on your options. Take step 4 and make the hard decision that need to be made. Finding part-time work? Starting an online business? Cancel your cable TV subscription? Use your cell phone less? These are the hard decisions you need to make.
6. Create a plan. Now that you’ve chosen your options put a plan down on paper. Then you’ll have something to refer to when making the daily decisions that are necessary to meet your long term goals.
7. Monitor & celebrate your successes. Measure your progress and develop a system of rewarding yourself for each objective that you meet. Tweak the things that do not seem to be working. You’ll soon have financial freedom that many can only dream about.
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