The First Steps Towards Becoming Debt Free
Getting out of debt isnt the easiest of endeavors, but financial independence is possible.
This article will assist you in setting yourself up with a series of goals so you can become completely independent of any form of financial support. The foundation that we will work with is that an ideal situation is to live debt-free.
By this I mean no substantial debt, ongoing monthly loan obligations, or any other kind of debt. In other words, I want to help you to develop the type of lifestyle you desire, the lifestyle you once thought was out of your reach.
The average American family who eliminates their consumer debt can save approximately $104,543 in interest and can be completely out of debt in approximately 5-7 years. This is our goal.
The most important way to get out of debt is to setup goals for yourself and keep to these goals.
To help you get started, write down your long, medium and short term goals.
Long term goals are your visions and your strategy. Medium term goals are the planning to get to your long-term goals. Short term goals are the to dos that make the plans come together.
Consider that a general rule of thumb is that most people get 80% of our result from 20% of our activities. Keep this in mind when you prioritize your activities.
When writing your goals, aim them towards a specific target rather than away from something else. For example a goal can be thinking about paying off your first credit card bill, not deciding not to go out to dinner every weekend. Goals should be about positive steps forward, not negatives to stay away from.
When writing your goals, you should always stretch yourself to your limit, without going too far overboard. Your goals should be a challenge, but realistic challenges. You don’t want to stretch yourself too far if they are too unrealistic, then you wont achieve them.
Always measure your goals. Sometimes this may be difficult, so privately create a vision of you achieving success with your goals. What will you see, hear and feel when you’ve been triumphant? Imagine the scene as vividly as you can. This way you’ll know when you’ve achieved it.
Involve others in your goals. If possible, break your goals down into manageable actions. Set these quarterly and review them at the end of each quarter.
Be sure to break your goals down into manageable actions. Dont bite off more than you can chew.
If you start making these goals, youll see how quickly youll be on the right path towards financial stability.
The road to a debt-free life might be long and arduous, but every house is build upon a strong foundation. Think of your goals as the foundation that your financial house is built upon. Set achievable goals and work towards them. Youll be happy you did.
Add comment August 16th, 2007
