Getting out of debt is a lofty goal.
It's a goal that most people will never reach.
I don't say this because it's an impossible goal.
I say it because most people are missing one of more of the 3 keys to getting out of debt.
Key 1: Don't Live Above Your Means You may also know this rule as "Keeping up with the Joneses.
" If you live in America then it shouldn't be a surprise to you that people like to spend money they don't have.
Talk to your friends or listen to your own conversations.
No doubt it won't take long to hear - "Did you see John's new house/boat/car, man that makes me want to go buy one..
" Most of us are more concerned with having the same or better stuff than our friends than the financial implications.
Key 2: You Can't Pay Down and Charge Up Your Credit Cards At The Same Time So many people make this mistake when they make an effort to pay off debt.
Oh sure, I'll pay an extra $500 per month on the credit card.
But I'll also go shopping this weekend and use the credit card to buy a new TV.
If you want to get out of debt, you have to quit cold turkey on generating new debt.
Key 3: Learn To Say No Oh Key 3 is a big one.
A lot of people are in debt in the first place because they couldn't say no.
They couldn't say no to themselves or to their friends.
"Want to go to the game this weekend?" A yes will likely lead to $500 on the credit card.
Learn to say no.
"I want to go to Vegas this weekend.
I can just use the credit card!" Learn to say no.
"Oh the car is paid off! Let's go buy a new one even though this one works just fine!" and so on.
Getting out of debt is more of a mindset than a financial decision.
It takes determination and will power to do it.
It may be tough but the rewards are huge! Imagine the burden of your debt being lifted.
Imagine having an extra $1,000 per month that you aren't having to put towards car payments or boat payments or credit cards.
You can get out of debt but you have to take action.
Don't be wishy-washy about it.
Remember the 3 keys above and get to work!
It's a goal that most people will never reach.
I don't say this because it's an impossible goal.
I say it because most people are missing one of more of the 3 keys to getting out of debt.
Key 1: Don't Live Above Your Means You may also know this rule as "Keeping up with the Joneses.
" If you live in America then it shouldn't be a surprise to you that people like to spend money they don't have.
Talk to your friends or listen to your own conversations.
No doubt it won't take long to hear - "Did you see John's new house/boat/car, man that makes me want to go buy one..
" Most of us are more concerned with having the same or better stuff than our friends than the financial implications.
Key 2: You Can't Pay Down and Charge Up Your Credit Cards At The Same Time So many people make this mistake when they make an effort to pay off debt.
Oh sure, I'll pay an extra $500 per month on the credit card.
But I'll also go shopping this weekend and use the credit card to buy a new TV.
If you want to get out of debt, you have to quit cold turkey on generating new debt.
Key 3: Learn To Say No Oh Key 3 is a big one.
A lot of people are in debt in the first place because they couldn't say no.
They couldn't say no to themselves or to their friends.
"Want to go to the game this weekend?" A yes will likely lead to $500 on the credit card.
Learn to say no.
"I want to go to Vegas this weekend.
I can just use the credit card!" Learn to say no.
"Oh the car is paid off! Let's go buy a new one even though this one works just fine!" and so on.
Getting out of debt is more of a mindset than a financial decision.
It takes determination and will power to do it.
It may be tough but the rewards are huge! Imagine the burden of your debt being lifted.
Imagine having an extra $1,000 per month that you aren't having to put towards car payments or boat payments or credit cards.
You can get out of debt but you have to take action.
Don't be wishy-washy about it.
Remember the 3 keys above and get to work!
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