More than sixty percent of the population admits that they are not prepared for retirement, but most of us are spenders when compared to the general public. These statistics point to us indicating that we are doing very little to becoming financially secure so that we can achieve greater goals.
It is important to first sort out our debt before going for grand plans like putting more than 20% down payment for a house or saving months of living expenses for a particular purpose. From a Nationwide Debt Reduction Servicesangle, we are going to look at seven steps to help you become debt free. Although there is more to it than these steps, these steps will help you be on the path to financial freedom.
Change your mentality on money
It is common for people to avoid this part and delve into getting out of debt according to debt relief services. In most cases, the problem is the frequency of people getting to debt because of emotional triggers that come to life because of overspending.
Money mismanagement and debt are usually symptoms of something else. It has been discovered by Nationwide debt reduction services, debt relief services and other institutions that spending is used by some of us to hide our fears or shame; it can be to cover our past, our present because some of us turn to debt to mask these sides. Now, the first step you need to take to overcome debt is to change your perception of money, about who we are, and our purpose in this life.
When you discover who you truly are, you won’t be confused about the expectations of others and this will make it easy to do what it takes to become debt free.
Imagine yourself out of debt
The next phase is imagining your future turning out better. Imagine yourself debt free five years down the road. Picture where you will be, the people surrounding you and that you will have accomplished.
When you have a clear outlook of how you envision yourself, the more chances you have on achieving your goals. To do this, you can write your goals on paper and stick it on a wall where you can see it every day. You can also do a vision board and you can also journal your future and recite affirmations to yourself. Do what works for you and start living your future today.
Check your expenses
The first thing you need to do is identify where your money usually goes. In most cases, financial problems do not stem from how much money earn, but it is pegged on how we spend the money. To make great strides in paying off your debt, you need to cut back on extravagant spending and channel the money to service your debt. If you analyze your debt, you can come up with similar conclusions.
Strategic spending of money
You need to start spending strategically, even if you don’t find ways to reduce your habits of spending. As a rule of thumb, you need to pay yourself first. Invest in the short-term goals that work towards your long-term goals. This plan will help you attain your goals.
Find a starting point
You don’t need to have a destination or a map to go somewhere if you have no idea of where you are starting from. It is possible to know your long-term goals, but if you don’t know where you stand today, it will be hard to get to the destination. So, you need to calculate your financial stand to start the journey of becoming debt free. This entails calculating your liabilities and assets. Have data on all your accounts, all your online accounts, and a list of businesses you owe money. This is a great way to determine where you are, and the assets you have accumulated.
Once all the information is present, add up your liabilities and assets to learn if you have a positive or negative worth. This is one scary path, but it is important for planning purposes.
Make a commitment
The final step is to become debt free. Make this commitment to a friend, a family member and yourself because when you share out your goals aloud, you become intentional about your goal which becomes more real. You also gain an accountability partner who will continuously ask you about your progress and keep you in check. It is hard for you to share your goal and then slack later on.
