Simple Wealth Step #5 – Pay Off Your Debts

May is Mini-Series Month and we’re working our way through my 11 Simple Wealth Steps.  We’ve looked at ‘Identifying your current financial position’, ‘Setting up a spending plan’, ‘Setting goals’ and ‘Identifying your limiting beliefs about money’. Today we’re looking at a very obvious step, which is to Pay Off Your Debts.

OK…so, this one may seem like a bit of a stupid thing for me to offer as advice. We all know we’d be better off without debt so I am not really telling you something you don’t already know.

However whilst we all know it, it appears that we either ignore it or we treat it like it is unavoidable and there is nothing we can do about it.

Human nature is to avoid pain and look for pleasure. We try to make life as easy for ourselves as we can. So when we have a need or something happens to throw a spanner in our works we don’t like it and we want a solution as quickly as possible.

And the fastest way to fill a need or fix a problem is to throw money at it, right?

E.g. If your car breaks down you obviously will need to get it fixed, even if you need to use your Credit Card to pay for it. You have no other choice unless you are lucky enough to be very mechanically minded and have all the right tools! Agreed?

But if you asked the question “what else is possible?” you might find you don’t have to take on debt (or more debt)! Is there another way you could get to work and back while you saved up the money to get the car fixed without using the Credit Card?

As a teenager I had to hand in my driver’s license for a month (It needed a holiday……OK OK I’ve slowed down since then!). Not having a license did not stop me one little bit and no, I did not do anything illegal. I still went everywhere I wanted to go; I just got there a different way.

There is always another way if you are open to the question!

So, looking at debt, if you feel that debt has you caged and it is stealing your freedom and your happiness, make an oath to yourself that you will not accept any more debt and then really dedicate yourself to rapidly paying it off.

Now just to help make my point, can you imagine what you would do if you had a cute little three year old daughter or granddaughter who was diagnosed with a rare disease that required a $50,000 operation to save her life. Would you say “Oh that’s too bad!” or would you put your everything into raising that money?

I reckon you would really focus on that one goal, you would not allow anything else to get in the way and I reckon you would find extra energy you never knew you had and you would go way beyond what you usually do so you could raise the money and save that little girl’s life!

So if that is true the problem is not that you can’t get out of debt faster, it is that you are just not motivated enough to do it! You have accepted that debt is part of ‘normal’ and that allows you to live a less stressful life where you don’t have to really push the boundaries and find energy you didn’t know you had!

Unfortunately less stressful in this case also means less exciting and less freedom.

I’m sure you know it is probably a million times easier to get into debt than it is to get out of it. And it is probably a hundred times easier to become wealthy than it is to get out of debt.

E.g. the payments you would have to make to pay off a $250,000 mortgage at 6.5% over 20 years could have saved up to $750,000 over the same 20 years, even if you only got an interest rate of just 5%. That’s three times as much saved up as you could pay off.

I’ll say it in plain English! In 20 years you could either pay off $250,000 or you could save up $750,000!

So, if you can pay off your debts you know you can easily become wealthy!

That’s all I’ll say on the topic for now. I really encourage you to think seriously about how you look at debt!

I dedicate a lot more time to this topic in my 12 month Simple Wealth Steps program. If you have not already done my Simple Wealth Steps program I’ll be upfront about it, I want you to sign up and give it a try this month. It is my business to help people improve their finances and it is no good if I have all the knowledge and tools and keep them to myself!

I am absolutely convinced that doing this course will pay you huge dividends over the years ahead so to make it really easy for you to give it a try, for the next two weeks I am offering the first month for only $14.95. You would basically be only paying for the kit I will post out to you. The kit contains a copy of ‘The Richest Man in Babylon, a Journal and a Cash Catcher”. And, if you are still on board for month two you will receive a complimentary copy of my best selling software Simply Budgets (just in case you don’t already own a copy).

There is no lock-in contract so you aren’t signing your life away. You simply stay as long as you feel you are getting value for money and as long as you are on board I will guide you through the 11 Simple Wealth Steps (5 of which you should now already know about if you have been reading my recent e-mails).

You will receive a weekly e-mail from ‘yours truly’ with a short thought provoking reading and a task, both related to the topic of the month and designed to help stretch you so at the end of the year, if you have embraced the program, you should be a different person thinking a different way and taking on the world with a new mind-set, more income, less debt and more money in the bank!

And it is fun!

To find out more about the course and to take advantage of the $14.95 for month one offer Click Here. I will send your kit ASAP and look forward to working with you.

What more can I say???

Unless you change something, nothing changes! Hopefully I have proven myself to be a trustworthy and reliable source of valuable information to you so why not give the program a try. Month one is now only $14.95 Click Here to find out more.