The level of personal debt accumulated has never been so high. Financial problems are the leading cause of divorce, depression and any other number of crushing personal problems. Imagine the weight that could be lifted off your shoulders should you be able to realize the dream of debt free living.
I’m now find myself in the middle years of my life and until recently I’ve experienced living in almost constant debt. The pressure on my physical and mental health, relationships and emotions was immense and is something I never want to experience again. I would like for you to not have to go through that same pain and so I am laying out the 7 steps (I won’t say they are easy) to debt free living.
1. Accept that change is neccesary. Doing the same things you’ve always done is going to keep producing the same problems repeating themselves.
2. What’s your current position? Spend some time noting 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? This is the time for some serious soul searching. Don’t spend time on little items but really ask yourself – What are my principles and values? What do I really want to get out of life? Use these as your defining goals and base all future decisions on them.
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. Evaluate the answers from step 4 and make the difficult decisions. Second job? Starting an online business? Turning off cable TV? Use your cell phone less? These represent just a few examples of things you need to consider.
6. Create a plan. Now that you’ve chosen your options put a plan down on paper. This is the guide that you use to make day to day decisions that are necessary to meet your long term goals.
7. Stay focused. 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. Before long you’ll be financially free in way that that makes your old worries seem a lifetime away.
