Have you ever experienced the joy of becoming debt-free, only to find yourself back in the clutches of debt?
In this video, I share personal and insightful narratives about the rollercoaster ride of paying off debt and going into debt. I understand the steps we need to take to regain our financial footing, and I'm here to guide you through it. I will cover the 'why' behind going back into debt and the 'how' of breaking free from it again.
Five Powerful Steps to Staying Out of Debt:
Step 1 –Reevaluate and Replicate
"Revisit your 'Why' because your vision is going to be what keeps you motivated. What were the steps you took to pay off debt before and how can you replicate them now?"
It's normal to reach a point where you feel like giving up, but a compelling vision will help you stay on track in your financial journey. Review the advantages and disadvantages of your past debt-free journey and how it can be applied to your current financial situation.
Step 2 – Create a Plan
"I trust myself more now than five years ago when I had no plan and was spending frivolously on things that added no value in my life. I'm not going to tell you what plan to choose because it doesn't matter what method I offer unless you plan to follow through."
Paying down debt may not always be the right decision in certain seasons of your life. Prioritizing money is a hierarchy of your choosing that is constantly changing. What plan can you actually execute and get results for yourself? What worked before may not work now. Your financial plan will be unique to YOU.
Step 3– The Build Phase
“Once you solidify the plan, you go into the build phase. This phase involves creating an emergency fund to cushion you for life's unexpected expenses."
Building an emergency fund should come first before paying off debt. The size of this fund depends on your situation and risk tolerance. How much are you prepared to risk paying off debt? Build the foundations of your financial situation for your plan to succeed.
Step 4 –Support
"Getting results faster typically depends on the level of support you surround yourself with. Support can look like a friend, a partner, a family member, or a coach."
Support is key to financial success. Motivation will keep you on track but a support system will be what carries you forward.
Step 5 –Play
“Don't forget to play in the process to execute the plan and track your progress."
Instead of viewing paying down debt as a punishment, how could you turn it into something that's exciting? This means executing the plan with a positive mindset, celebrating small victories, and tracking your progress regularly. It's about making the journey enjoyable and rewarding.
Don't let setbacks define your financial future. Book a call today and begin this empowering journey towards lasting financial well-being.