Many, if not most people, ignore or seriously underestimate one of the most dangerous aspects of their lives: debt. We all (well, 96% of us) have debt to some degree or another.
”It’s a normal part of life,” society claims.
“There is Good Debt and Bad Debt,” people insist.
“Just put it on credit, get a loan—it’s okay,” or so we’re told.
But, is any of this true? Go back a generation or two, and see how different people dealt with money and purchases.
Technological advancements and standards of living have changed life significantly. An average family household today is crammed full of machines, gadgetry and technology designed to make life better and easier.
Modern life expects us to have more things, but the average wage evolved as well. With this wage growth, why is society so heavily burdened by debt? Fifty years ago, debt was either unheard of or, if you had it, you paid it down as soon as possible. Regular people bought houses and other significant items. They just didn’t have access to easy credit. They also didn’t have that “instant gratification” mentality.
Back then, if you wanted a car, you earned money, saved up and paid for it once. Rather than walk, you could then drive to the supermarket every week to get your food. Today, almost anyone can get a car. The bank will pay up front, and debt allows you to pay it back later.
What’s the cost?
You also end up paying interest and fees, plus penalties if you’re late with a payment. Suddenly, you’ve paid far more for the car than it’s worth. All of this essentially amounts to lost income. You could have put that extra money to work for you. Instead, it’s working and earning money for the bank. And it’s all because your perceived immediate need for that car.
But don’t make the mistake of thinking that just because you end up in debt there’s something wrong with you. You’ve been led down this path by the expectations of society and the willingness (cunning) of banks to lend.
The problem is debt can spiral out of control and cause good people to live far beyond their means. The pressure this puts on families, relationships and businesses is often overwhelming. And the final outcome can be devastating. Debt has become normal, and it shouldn’t be.
Moving past your debt
So, how do you get out of the never-ending debt spiral? Is it possible? The simple answer is “Yes.” But you need a MindShift and commitment to make it happen. If you’re willing to commit, there’s a better way to manage your day-to-day finances and tackle your debt head on. Start by implementing four key steps:
Identify and prioritize where your money goes.
Develop an adequate Cash Surplus.
Optimize and automate your bank account structures.
Build an appropriate safety net that protects you and your family financially in the event of something happening to prevent you from earning an income.
If you’re like most people, you do have debt. And you probably agree that it sucks. But now you have the choice to take action. Protect Yourself and your family from the damaging ravages of debt.
Change the way you think about debt, and pay it off and implement these four principles. You can beat debt, and say goodbye to Money Stress.
So what’s the best way to start? It’s easy! Book your FREE INTRO SESSION with Julian Musgrave at Your Wealth Matters, and get your immediate questions answered. There’s no better time to make a fresh start on your financial future. Click here to book your free session now.
This is a sponsored post. The views and opinions expressed are those of the guest author and do not necessarily reflect the views and opinions of MindShift.money.