So many of us have the goal of getting out of debt. Nobody really wants to live with hundreds of thousands of dollars, or even hundreds of dollars, in debt hanging over their heads. The trouble is, how do you eliminate that debt? Do you think to yourself “If only I made more money, I’d be rich?” Do you look at your financial picture and see no way out? Do you give up on your goal because it’s too hard to work on it today?
“When it’s obvious that the goals cannot be reached, don’t adjust the goals, adjust the action steps.” — Confucius
You don’t need to eliminate your goal of being debt-free, you just need to adjust how you will get there. Here’s an example: right now it may be easier to stop on your way home and pick something up for dinner instead of cooking at home. Let’s say you just stop for something on the value menu, and you can get your meal for $3.50. And let’s say you do that every day. Did you know that in ten years you will have spent $12,600 for the convenience of eating out? (Or your morning latte, nightly milkshake, etc.)
Often, we don’t think of the little things as having a big impact on our financial future. But that $3.50 a day could add up to significant savings on interest if we put it towards debt instead. Sometimes it’s hard to see how that can really add to your long-term picture.
For many people it becomes an important step to have a plan in front of you, a road map to show you where you will be if you take a certain path. A “Debt Plan” makes it easy to see how those little things add up. It will show you that the little bit you spend today will actually cost a lot more in future interest savings.
So here’s what it boils down to — adjust your short-term thinking to be more in line with your long-term goals.
If you have already begun on your path to debt freedom, then keep up the great work! As always, if you need an updated plan or just some good old fashioned motivation, call or e-mail our office for a free, no-obligation debt strategy session.
Your Debt Expert,