Get Out of Debt
March 1st, 2007One of the surest things to slow your progress with personal development or in any area of your life is to be in debt. Being in debt feels like being at the end of a dead end street with no where to go. It may feel like you are in a helpless situation but there is a good chance that no matter how deep in debt you are there has probably been someone in even more debt than you who managed to not only get out of debt and get back to the surface but fly off into the sky. It’s a horrible place to be, I know this form experience but let me tell you, when you get out of debt the whole world opens up. Although it does take some patience and a lot of hard work, you will get there if you persist. Since you are reading information on a personal development website you are already heading in the right direction so do not stop now. It is really just a matter of planning.
There are a number of ways to attack this problem and I recommend starting immediately, I mean why wait? The sooner you start the sooner you will be free and that is what getting out of debt will ultimately give you. The moment you get out of debt you will get your freedom back and freedom is what will lead you to new exciting choices.
The first step is to look at your total income. The second step is to look at your expenses. After taking a long hard look at both your income and expenses you need to see how you can make more money and secondly, see how you can cut down your expenses. It might be a hard thing to face but if you are serious about getting out of debt you need start by cutting your expenses from this moment on. If you are renting you need to assess whether you could still survive in a smaller place. What about your car, if you have one, do you really need it? If not, get rid of it. If you need a car, do you need one so big, or could you get by in a smaller, more economical vehicle? What about a bicycle, if you don’t live too far away from your job, maybe a bike might be perfect for you. Bikes are certainly fuel efficient and may even help you get back in shape if that is an issue for you.
You need to take a look at your diet and not for the usual reasons, in this case we are looking at it in relation to your financial health. Are you eating out a lot? If you are, it is time to stop. Start buying your food from the supermarket, it is the cheapest place to shop and start cooking EVERY meal. You can save a small fortune and really help yourself get out of debt by taking your meals to work and avoid the excessive costs of fast food outlets, cafes and restaurants. Also look at what you are buying at the supermarket, only buy the essentials, food for breakfast, lunch and dinner. I am just talking about the basics without compromising on getting a proper balanced diet. This is about saving money, not trying to starve yourself. However, if you are serious about really getting out of debt and want to get a head start on it immediately, you need to cut all the non essential foods. I am talking about, potato chips, ice cream, cookies etc. These are luxury items and not on your get out of debt menu. Maybe once you get the ball rolling and start to notice some progress towards getting out of debt you can reward yourself once a week with a special culinary treat for sticking to your plan.
Do you like to hire movies from the video store or go to the cinema? You can still do this but once again it is a luxury and you need to assess whether you can afford such luxuries or can you do without? Are you a drinker? If you are this is like flushing money down the toilet. I used to be what you might call the typical Aussie guy and I did not mind a few beers but when I decided to get myself out of debt this was where I could see a decent size hole in my income. My answer to this was one that took me a while to get my head around but I finally stopped and have never had a single drink since and that was years ago. It might not be the most common reason to stop drinking but the reason I stopped was directly related to the amount of money I could see myself wasting on drinking. It was also one of the single best things I have ever done and now that I am out of debt and in front I would not have a drink ever again even if you paid me. For me it is just not worth it and since my life is so much better than it ever was before, I cannot believe why I ever liked to drink in the first place. If drinking is causing you a financial problem you need to cut the legs off it right now. This article is not about giving up drinking but I wanted to mention it as it does cause many people to waste their money and giving up or at least cutting it back is one way to help you get out of debt.
Taking a closer look at your life and your job, are you happy at work and is your work providing you with a reasonable income? If not, perhaps you need to look at a new job, or investing some of your time in some type of education which may increase your skill level and allow you to make more money. Do you have any talents or hobbies that you could put to good use and derive a passive income from? Maybe like opening up a website, doing some coaching in a sport you are good at or setting up a small weekend business selling handicrafts you make yourself. These are just a few examples but you would need to look into what might work for you in relation to a small business. Any additional income you can accumulate will not only help you get out of debt, the extra passive income you generate may eventually turn into a profitable and long term small business.
Getting out of debt might seem like an overwhelming problem but it can be done. You cannot expect it to be fixed overnight but you can fix it with a careful plan and by cutting back on unnecessary expenses. By looking at the big picture you will see where you can save even the smallest amounts of money and all those small amounts will eventually add up to a huge chunk of money over time. Formulate a plan to get out of debt with a clear path to your goal all laid out, stick to it by getting into new saving and spending habits and then it is just a matter of time till you get your freedom back. Once you get back your freedom, learn from your lesson by sticking to your new way of life and then sit back and enjoy.
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