Now that you’ve made the decision to become wealthy and really, truly, no-kidding pursue financial freedom it’s time to get down to business and start the practical part of your CLIMB.
Today we discuss the importance of eliminating your debt.
C – Choose
L – Liability (Debt) Elimination
I – Intelligence Gathering
M – Maximize Income
B – Beat the Rat Race
If you are already debt free congratulations! Please bear with me today; tomorrow’s discussion will be much more useful for you.
Debt = Financial Abomination
I intend to make this a short article.
Consumer debt is one of the plagues of our generation.
In a VERY limited set of circumstances taking on consumer debt may be the only way to fulfill a need…like buying a house or a modest vehicle.
Debt used to buy a fancy luxury vehicle, a new TV or any other shiny, glowing, intelligence sapping, unnecessary toy, trinket, vacation, etc. is a financial abomination and a violation of the natural laws governing financial freedom.
If you have debt for anything other than your house, your first task in your journey towards financial freedom is to destroy your debt as quickly as possible.
How Did You Get Here?
One of the perverse ironies of living in the United States, beyond question the most prosperous nation in the history of the world, is that so many Americans surrounded by prosperity are trapped by debt.
People rack up debt in different ways.
Some people owe tens of thousands in credit card bills due to irresponsibility and misplaced priorities.
Others came by their debt more innocently owing tens of thousands in student loans, medical bills or debts racked up during an extended period of unemployment.
Whether the hole you are in is your fault or not, the bottom line is you are in a hole and you are the only one who can get yourself out.
Don’t try to pass responsibility for your situation off to anyone else. Don’t put up with your debts. Don’t pretend they don’t exist.
You can make no other progress towards financial freedom until you have eliminated your debt. So accept that fixing this problem is your responsibility and go to work fixing it.
Terminate Debt with Extreme Prejudice
Depending on the size of the hole you find yourself in, this phase may be a matter of months or it could take several years.
But don’t get discouraged.
To get started I’d recommend picking up a copy of The Total Money Makeover by Dave Ramsey. This book will provide you with motivation and a well-defined, proven program for eliminating your debt.
Dave’s program has worked for many thousands of people and it will work for you too if you will commit yourself to aggressively attacking your debt.
Above all, remember the vision you created for yourself yesterday. Don’t lose sight of the end goal of financial freedom.
Yes it will take sacrifice and hard work. It might be painful at times. But you can do this. You MUST do this.
The discipline and self mastery you will develop by eliminating your debts will be of enormous benefit to you in your journey to build your Place to Stand.
So don’t delay. Go spend some time with Dave and before you know it you’ll understand the peace and security that comes with being debt free.
Then come back and learn what to do with all your new found cash every month.
What are you waiting for?
Don’t you have a book to start reading?