Ditching Debt!
Guy with pockets out

First off, take a moment and breathe! I’m not kidding! Take a deep breath right now. (Breathe in through your nose, hold for 3 seconds and then slowly breathe out of your mouth.) You may have to do this up to three times to calm yourself. Okay. No matter how much debt you have and no matter your income level, you’re going to be able to dig yourself out of your current hole. For starters…let me give you some data on the demographic of people who come to me for help.

Most folks who attend my seminars have the following financial issues:

Now what can be done about your current situation? Firs you must truly understand that the decisions you made brought you to your current financial situation and it will require some creative problem solving. There is NO BLAME here, just facts. Here are three steps to get you going on your way to financial recovery.

Step 1: Answer the following questions on a separate sheet of paper or in a word document.

Step 2: From today on you will track every penny you spend.

Yep, that’s right. You need to know EXACTLY where every bit of money is going. These are the holes in your ship. By tracking your money is going you will be able to determine if each and every purchase is truly worth your life energy required to buy it. Did you get value added for the money you spent on that dinner out? The latest movie? Or fast food run?

Step 3: Any time you get extra money in your life such as a bonus check, a rebate check or you find a $20 bill on the sidewalk (yes, this has happened to many folks) divide your money up according to the 60/40 principle.

60% goes into your checking account and use it to pay off that credit card

10% goes into your short term savings account

10% goes into your long term savings account (IRA, 401k, 403b, etc.)

10% goes to philanthropy (a charity of your choice that you trust-this is not family!)

10% goes to your religious organization (if you do not belong to one, give this 10% to charity)

These three steps are the beginning steps to getting more for your money and moving you into a secure financial position. While you’re working on these steps, I recommend that you download a chapter from the book, Ditching Debt: Three simple steps for Financial Stress Relief. There is also my blog, The Money Muse that has all kinds of information and resources to help you get your financial house in order.

Ditching Debt Book

Download free chapter, Start with the Big Picture: Vision Comes First