Debt. That great financial enemy we’d all love to defeat, that crushing burden we’re all trying to relieve. Most of us hate it, yet nearly everyone has it. People get in it, and are trying to get out of it.
People struggle to get out of debt for two primary reasons.
First, they don’t have a wise and coherent strategy for paying debt down. Many competing strategies exist, but people aren’t sure which one is the most effective. Second, no strategy addresses the underlying psychological reasons why people get into debt in the first place. And without addressing these reasons, they can never develop the discipline to get out and stay out of debt.
Are you up to challenge of crushing your debt? Good! When you are done reading this page you have a 4 step process for paying down loans, and a little insight into why you are in debt and what you can do about it.
Remember that your purpose in paying off debt is to free up cash flow that you can then use to invest in passive income vehicles. With that in mind, here’s the fastest, safest, and most sustainable way to become debt-free:
The loan to pay off first is the one with the lowest Cash Flow Index. For example, consider the following loans and ask yourself which one you would pay off first:
Now let’s tackle the second reason why people struggle with debt. They don’t understand why they are in debt in the first place.
You see, without a fundamental change in consciousness regarding debt, no strategy alone will work long-term. For lasting results, identify and solve the root causes of debt, rather than hacking at the by-products (interest and bondage).
Before you employ the techniques above, ask yourself:
Getting and staying out of debt requires a fundamental shift. A simple guide moving forward: Never borrow to consume. Use cash for consumer items, such as furniture, clothing, and vacations, and only borrow for productive assets and resources.
Getting your financial house in order is about much more than the technicalities of finance. It’s about your mindset and psychology. It’s about your willpower to defer immediate gratifi- cation in favor of long-term freedom. It’s about seeing and cul-tivating a vision beyond working 9 to 5 for the rest of your life. You extend your runway in life and expand your bandwidth.
As you crush your debt, you will free up more cash flow that can be used to fund your investments.
In 5 Day Weekend Nik and Garrett share numerous tips and methods for hanging on to more of your money. You will learn:
Keeping more money is the foundational step to living a 5 Day Weekend, and you can find all these methods outlined in the book 5 Day Weekend.
Yes! Send Me a Copy, I Want to Keep More Money
Are you ready to move on to the next step? Make More Money
Document your debt, your cash flow loans and your plan to capture and create wealth. Fill out this document and start shaving down your debt and increasing your cash flow.
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