It’s easy to say that you want to be debt free. It is an admirable goal but without entering the game mentally to see this goal through to the end, you probably won’t make it. I am being completely honest here it is not going to be easy. Becoming debt free is a mind game as much as it is a savings game. Although if we want things bad enough we tend to do the things necessary to make them happen.
Ok I’m done with the pep talk it is time to get serious. I hope you had a chance to read through the start saving section of the blog because the mindset that you will learn from it will help you adjust to my mindset on paying off debt. Before getting into the mindset you will also need to do a full calculation of how much discretionary income you have to pay towards your debt each year. If you want a visual on how I view debt it is this:
It is a bear trap attached to a ball and chain just waiting for you to step onto it. Latching onto your foot and making your bleed out in interest payments. While at the same time holding you back from reaching financial freedom. For now I want you to think of this image as what debt is until we are out of it and then we can look at it in other ways.
The debt I am focusing on here is high interest debt. I am not talking about mortgages at this point and time unless the interest you are paying is more than 5% per year. I am talking about credit card debt, student loans, personal loans, car loans, medical bills or any other type of debt that the interest your paying is above 5% a year.
Can you think of the last time you were debt free?
If you are like me you graduated from college with student loans. Then after you might of found a job and bought a new car and with it another monthly loan payment. Then before you know it a year has past and you have racked up a few thousand dollars in credit card debt. Ok breathe. I know that you now feel trapped by the loan payments each month and you are thinking when will this end. It seems like there is no light at the end of the tunnel. Like most blogs out there they are going to try and sell on you their way of “how I paid off x amount” and you can to if you follow these steps. My aim is to not only give you the steps on HOW I was able to do it but more importantly get you into the right mind set to pay off debt and WHY you should shift all your focus on this after learning the mindset on how to start saving.
Getting you into the mindset of paying off debt is not something that I can cover off in just one post. The goal of this post was wanting you to visualize debt the same way I do. As a bear trap attached to a ball and chain that bleeds you dry through interest payments and holding you back from achieving financial freedom. A good book that I would recommend that a lot of my mindset towards saving and paying off debt comes from The Richest Man in Babylon by George Clason. Stay tuned for next week’s post where I explain the three debt reduction techniques that I have used.
If you find that my personal finance blog is not for you I still want to help push you towards the right direction towards paying off debt check out My Top 15 Inspiring Debt Blogs For Paying Off Debt.