Debt Proof your Life


I hear people everyday preaching about they want to get out of debt. The problem with this is that their mindset is so caught up on getting out of debt that they never really get out of debt. Here’s why, if you spend an enormous amount of your energy thinking how you will get out of debt, you attract the thing you think about most in that scenario. Because your focus is so intense on getting out of debt, you actually can attract more debt in your life. Instead, you should focus on seeing your life after debt. Make it an even more powerful visualization in your mind. See yourself playing golf at 10 AM in the morning when everyone is at work or scuba diving in the Bahamas when most people are shut up for the winter.

It’s no secret that your goals for getting out of debt must be to see your more favorable outcome in the future. Don’t spend most of your time thinking of debt reduction e.t.c. Think of a limitless and abundant lifestyle where you are in charge of your finances and you have total control of debt and not be a slave to debt. To debt proof your life, you need to change your lifestyle considerably and even more importantly, you need to change your Mindset.

Those that get themselves in heavily in debt tend to have a mediocre mindset. They eat up every bit of marketing thrown at them. You know, the constant shopping deals of the century, Gucci bags, brand new cars at 100% financing and even 100% financed homes. Although these deals sound great, those that fall for it, end up in debt to their eyeballs because of lack of foresight and a deficient mindset. You need to build your mindset just like you would build muscle in a gym. The more you condition your mind, the stronger it becomes. I’ve found a very good video on YouTube with Seth Godin on the ‘Mindset of a Winner’. Even though it talks a little about selling, you can take away great points from the video. See here:

How to get out of Debt
To get out of debt, you need to apply some very simple solutions to your financial life. First off, stop the bleeding.

1. Cut up any cards except those you use for emergencies.
2. Stop incurring any new debts. You need to stop the cycle of debt incurrence.
3. Put yourself on a strict budget. Eat rice and beans and beans and rice as my good buddy Dave Ramsey would say.
4. Stop eating out as often. Buy groceries and prepare your meals at home, you will spend a fortune on constant eating out that could go to debt reduction.
5. Check your closets and have a garage sale for all the stuff that you still have brand name tags or even the price tags on them. Sell this stuff and put straight towards your debt.
6. Start with your smallest debt; wipe it out and reward yourself. Then go to your next highest debt and apply the amount you were paying on your smallest debt plus whatever you normally apply to that debt. Repeating this cycle for all your debt will allow you to definitely get out of debt quicker as well as smarter.
7. Teach others how to get out of debt. It’s proven that as you get yourself out of debt, you will keep yourself more debt free if you teach others how to get and stay out of debt. Practice what you preach.
8. Get a second source of income. It’s nothing wrong with taking on a second job or finding a second source of income that helps with your debt reduction. Remember, this is a temporary measure to get you out of debt and back on to the road to success.

Condition your Mind to stay out of Debt
Once you are out of bad debt (possibly with only a house mortgage), you need to condition your mind to start buying things with cash. If you don’t have the cash, don’t spend it. Another great way of conditioning your mind for debt proofing is ask yourself if you really need that neat gizmo that came on the market. Rest on it a day and ask yourself again. Ask if you really ‘need’ it – 9 times of 10 we don’t.

Visualize Your Success Daily
From my last post on Visualizing Success, you need to really empower your mind and visualize your success daily. Focus on the positive rather than the negative. See yourself living in complete and utter satisfaction without any bad debts. Those that visualize their success are usually the most successful people in the world because they have a vision that even transcends today. With that, I wish you all of your dreams and success to come to you two-fold!

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Category: Financial freedom, Financially Elite Blog