Are you currently digging your way out of debt? Do you have dreams of bringing that credit card balance down to zero? Or maybe you’re trying to get rid of those pesky student loans! Whatever the case may be, there are a ton of people trying to dig their way out of debt right now, and I’m definitely ecstatic to hear it! However, many of these people don’t seem to realize that their mindset will keep them in poverty for the rest of their lives…
If you’ve ever been in debt, you know that it absolutely sucks. When you buy something without actually having the money to pay for it today, you inevitably create a monthly payment for yourself (sometimes for the next 5+ years!), which means that you’ve just reduced your cash flow each month. Instead of having 600 extra bucks at the end of the month, now you have only $200. Having debt leaves you feeling trapped each and every month. It restricts you from going on trips, buying gifts for your friends, and sometimes even going out to eat. It doesn’t seem like you can buy anything without first thinking about your debt.
Then Get Rid of It!
So what’s the solution? Well obviously, it’s to get rid of your debt! It’s definitely not easy, but if you’re consistent and disciplined, you can definitely get out of debt. And, once you’re close to getting out, there’s just such a weight that starts lifting off of your shoulders. It really is a miraculous feeling. I can’t wait for all of you to get there and experience it for yourself.
Time to Live Life YOUR Way
Finally, your debt is gone and you don’t owe anyone a single penny! You’re free! Rather than going through the routine of writing checks to your creditors, you can whip out your tablet and watch your bank account grow. Without that constant payment getting deducted from your checking account, you suddenly feel free to do those things that you’ve always wanted! Now you can take that long-awaited vacation, get a whole new wardrobe, get tickets to that expensive concert in town, or you could even buy those shiny golf clubs you’ve been eyeballing for years! After all, you’ve got the cash, so it’s ok right? This is where many people get themselves into trouble…
Back in the day when you were adding to your debt load, you were continually asking yourself what you wanted and what you could buy. And, since you had great credit, you just bought it (and added to your payments each month). While you were paying off your debt, you suppressed these thoughts, but you never transformed them to wealth thinking. This is exactly why so many people get out of debt and either go right back in, or they develop a paycheck-to-paycheck lifestyle.
So How Can You Build Wealth Instead?
Nobody wants to be in debt and I don’t believe that anyone really wants to live from paycheck to paycheck either. So the question is, “How can I change my mentality to build wealth and not remain poor?” First of all, you must realize that not everything you want is a necessity. Did you really need brand new $2,000 furniture? Or could you have sat your butt in a nearly-new $500 set? How about that car of yours? Is it really necessary to drive your 2 year old, $15,000 car, or could you find one that’s just as dependable for about $7,000? Rather than getting what you want, you should only buy what you truly need.
In addition to curbing your expenditures, you must begin to think 5, 10, 20, or even 40 years into the future. Do you have any idea how much money you’ll need to retire? If you answered $1 million and you’re under the age of 50, I’d say that you’re sadly mistaken. No matter what your age is, if you truly want to be rich, you must begin to make investments into the market, into your education, and into your own business.
When you were digging your way out of debt, you might have begun your own business on the side to generate some more money. For me, it was this website. Now that I’m out of debt, I use this additional money to invest in my education. And soon, once I’ve graduated with my MBA, I’ll use the monthly income to buy a rental property. Ever hear the phrase, “the rich get richer”? Well, it’s true, and it could be you if you let it.
How are you going to build wealth in the future?