Introducing the new DailyWorth Get Out of Debt Guide, a vital component of building net worth.
Standard get-out-of-debt advice usually tells you to first calculate how much you owe, add up your balances and make a plan for paying it all back.
That’s not a G.O.O.D. idea.
We’re not talking about cutting back and going on a money diet. We’re talking about rebalancing your life so you ditch debt and build wealth.
When you’re in debt, that’s a sign that you’re living a life you can’t afford. To get your life and your money back in balance, the first step is:
Start Living a Debt-Free Life (Now)
- Get a piece of paper and break down elements of the In-Debt Lifestyle:
Habits that lead to debt. People that lead you to overspend. Lies you tell yourself (“It’s on sale”; “I’ll pay it back”). What you feel is “normal.” (“We have to have a big wedding.”)
- Now, on a separate piece of paper, imagine the Debt-Free Life:
Having money to save each month. Being honest with friends. Enjoying life without sacrificing priorities. Saying no and feeling comfortable.
This week, practice one aspect of the G.O.O.D. life.
Penny for your thoughts. What would your debt-free life require?
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