Do you ever look at how much debt you have and ask yourself, “How did it get to be this much?”. Many Americans do and trying to pinpoint where it came from can be tough when you don’t have certain things in place. When you hear of people being debt-free, you probably wonder how they did it or they must be rich, but the fact is that many of us can reach the debt-free title. There are many things that contribute to becoming debt-free, but I want to focus on some of the small things that are often the hardest to execute. Here are the 5 traits to start practicing:
People must learn to set goals not only for becoming debt-free, but in all aspects of their lives. We have all heard the cliche “You can’t get to where you’re going if you don’t know the directions to get there”, well it’s the same when trying to become debt-free. You have to set what the goal is, why you are setting it, how you will get there, and when you will get there. Goal setting is like everything else, you have to practice to get good at it. The hardest part is executing the plan to reach your goal.
It is important to have discipline in life and especially with your finances. You have to develop the discipline to change spending habits. Simple things such as going from name brand to store brand adds up. Think about it, you didn’t get to the amount of debt over night, it slowly added up in most cases. Same with saving on little things because cutting out certain wants and only buying what is necessary will allow you to apply that to paying debt off.
Along with discipline, one must learn to be patient because getting out of debt takes time. Unless you hit the lottery or come across a large sum of money, you have to understand it will be a journey. There will be times were you will struggle with your inner self on spending “just this one time”, but keep reminding yourself why you are doing what you’re doing. Knowing that it takes time will help minimize those struggles.
It’s important to keep your eye on the goal and be ok with the change of lifestyle that happens when trying to pay off debt. Being secure with the decision and change that happens because you know that your financial stability will increase. Also knowing that the feeling of being debt-free will be worth it. Not only that, but the experiences you gain from adjusting to the new lifestyle will secure your financial freedom because your new lifestyle is one that incorporates these traits discussed.
If you have any questions about this topic or any financial topic, be sure to reach out to us and we can answer them. Use the contact form at www.medinaadvising.com