Entrepreneur or not, living under debt is something you don’t want to do. Debt is oppressive and builds with magical ability. And as an entrepreneur especially, you are going to want your assets to be free of danger.
Often, your pocket will be taxed when starting a business. Let’s be realistic here, entrepreneurialism is in no way about making money immediately. It’s an investment. I’ve met many a small business owner dipping into their own bank account for little things here and there. Starting a business, especially your first, will inevitably affect your bank account. And whether or not this dipping is causing debt or causing more debt, you need to to get free.
According to Nerdwallet.com, American consumers are, as of 2014, 11.62 trillion dollars in debt. What does this mean? Frankly, that debt is a problem plaguing America. Today is the day to start tackling your personal debt.
- Cut up or freeze all but one card. Break out the scissors and destroy that card. Or you can literally get a container, fill it with water, place that card into the container and stick it in your freezer! Whatever it takes to make yourself stop using the cards as an excuse to bury yourself in debt. Just don’t cancel your accounts because that affects your credit score. Instead, stop using the accounts and pay them off. That improves your score.
- Pay off current charges every month or stop using the card altogether. You’re down to one card. You can either keep using it but make sure to pay off the current charges each month, or simply stop using it. The key here is to be religious. The following steps will be heavy and difficult if you don’t maintain this one. Prevent further debt while you move forward in eliminating debt.
- Make the minimum payment on all debts. Don’t be sporadic in your attack to tackling debt. Start a rhythm. Next week, I’ll talk about how to really accelerate this plan of attack. But for now, let’s establish a base. Make the minimum payments regularly on all of your debts. It might take a moment to get into this rhythm but it’s your first real platform to reach to move forward into eliminating your debt. Then you can start accelerating your process.
There are nine steps to this program I teach. These three are really the base steps to set you up for success. With intentional practice, this program can get you completely out of debt (including your mortgage!) in 5-8 years. I hope you stick with me as I explain the next six steps.
What is the main thing that keeps you in debt? Leave an answer in the comment section below!
I’ll be back on Monday to let you in on the next three tips!
This debt-freedom topic is a part of my Money Mastery teaching. I’ll be releasing this program to the public for purchase in the upcoming weeks! Stay tuned!