How to Make a Commitment to Eliminate Your Debt - That Works!
By making a commitment to eliminate your debt, you are taking the first giant leap towards becoming financially free. Imagine the wonderful feeling of total financial freedom. No debts, no financial worries, and best of all not being tied to a job you don't like just to pay the bills. Research has proven that it takes three things to accomplish anything: Passion, Motivation and Accountability.
PASSION
The first step is to create the passion is by imagining yourself as totally financially free. Everyone is now talking about "The Secret" especially after Oprah recently launched it to the world. But these 'secrets' have been around for many years. I was practicing them 20 years ago and wouldn't be teaching my Money Program now after achieving my own financial freedom if I hadn't.
The first book I read, and its still in print, is Shakti Gawain's "Creative Visualization". If you want a fantastic little book with lots of wonderful and practical ways to imagine yourself as financial free, this is the one. From 'treasure mapping", which is now called "Image Boarding", I believe, through to excellent practical exercises to raising your subconscious belief in creating more income and wealth, this little gem works wonders.
Another way to create passion, is to list all the things you can be, do or have when you are totally debt free. Imagine all the wonderful things you can do. The places you can go. How you can help your family, friends and community. This is what financial freedom is all about.
MOTIVATION.
Secondly, create the motivation by establishing a 'debt-free' plan. There's nothing better to start the ball rolling than to actually sit down and put pen to paper. A debt-free plan does not have to be difficult. And remember, it doesn't have to happen overnight. You just have to start now.
A debt-free plan should incorporate time-frames, a suitable budget that ensures you pay off your existing debt, and realistic goals and action steps. This can include how to reduce any unwanted and unnecessary expenditure, and how to reduce some basic expenses, such as food and grocery shopping. Always take a list when going to the supermarket! You may also want to sell any unwanted items around the house. Large auction websites say that the average household has at least $2,000 of unused items that are still in good condition that other people often want. Or, have a garage sale and remember, all additional money that you make MUST pay off your existing debt.
Always start with your most expensive debt first, such as credit cards, which usually incur 20% interest or more. To give your motivation a little boost, pay off the smallest loan or credit card first. Yes, that's right - the smallest one. That always gives you that necessary sense of accomplishment as a great kick-start. Then you can move on to the larger debts. Paying them off one by one from smallest to largest.
ACCOUNTABILITY
And, lastly, create accountability by taking absolute responsibility for all your debts - and also know that you can change that! More than ever before, we have the ability to earn a lot of money. There are more middle-income earners now than ever before, but the wealth distribution stays about the same - or becoming worse. The more we try to live above our means and buy things we cannot afford, the deeper we dig our debt-ridden ditches.The only way out is to financially mature and to start taking responsibility for our actions.
Know that you CAN change your financial position. If someone in your family is a shop-a-holic, then that is an addiction. Seek counseling. As with any other type of addictions, the first step is in admitting it. We DO NOT need all the materialistic things we surround ourselves with. Think about it. Is it worth it? Financial freedom vs a lot of useless stuff lying around the house. It's not rocket science. So, there must be another cause, and that cause is typically an underlying addiction. Take responsibility, and you are more than half way there.
Good Luck!
Related Tags: wealth, debt, investing, personal finance, budgeting, family budget, debt-free, financial advice
Ann Marosy is an accountant, consultant, and former university lecturer. She was formally a Financial Controller of a Fortune 500 Company, and Finalist of SA Executive Woman of the Year. Ann is the author of 'The Money Program' book series, which includes managing the stages of wealth creation, formulas for budgeting, debt-free program and investment strategies. Visit: The Home of The Money Program
Your Article Search Directory : Find in ArticlesRecent articles in this category:
- The Secrets to Getting Low Down Payment Car Insurance
Upon purchase of a new car, there is almost always a requirement to buy an auto insurance policy as - The Wisdom Behind Auto Insurance Comparison Quotes
No one in his right mind would not go for a good deal. In fact, everyone is out on their feet and ru - The Benefits of Auto Insurance Comparisons Florida
Insurance can be expensive. This is something everyone knows about especially in the sunny state of - Auto Insurance Florida: The No-Fault Policy
There are different kinds of car insurance offered by a wide range of providers today. Different sta - Finding the Cheapest Auto Insurance Companies
Everyone is asking and searching for the cheapest auto insurance companies available today. Consider - How do You Compare Private Health Insurance Cover in Australia?
Deciding what is the best and most affordable private health insurance cover can be easy if you take - How Payment Protection Insurance Was Mis-Sold
For over six years the issue of Payment Protection Insurance (PPI) and how it was mis-sold to custom - Finding Quotes For Auto Insurance Online
One of the many concerns when you are shopping for auto insurance is being able to get access to quo - How You Can Find the Best Auto Insurance Online
When it comes to renewing your car insurance you are going to quickly discover that there are a numb - Guidelines For Searching For Auto Insurance Online
The internet can be a great source of discounts and values related to auto insurance. However, many
Most viewed articles in this category:
- Trading Forex With Pivot Points
Forex Pivot Point Trading are used today by Forex Traders and are calculated on the previous days mo - Where To Search For Free Grants
Where do you look for free grants? The search must be thorough or it could be an exercise in futilit - The Connection Between High Blood Pressure and Salt
We are a society of Salt Addicts. It cannot be denied. When you look at the things we do and the pla - Tips For Avoiding HYIP Scams
Before knowing about HYIP Scams, refer to the functioning of HYIP or "High Yield Investment Programs - Getting Credit After Bankruptcy
Consumers do not have to live sans credit following a bankruptcy. By following certain steps consume - Tips For Choosing A Credit Card
Are you looking for that perfect credit card? If so, you may be confused about what exactly to look - Cheap Car Insurance For Teens Online
Many elements determine a car insurance policy. Car insurance companies look at the person's age, hi - What Exactly Is Free Grant Money?
You can apply for free grant money from various government agencies. But where exactly does this mon - Small Business Owners Marketing and Customer Service
Marketing can be time-consuming, but it doesn't have to be hugely expensive now, thanks to the Inter - Apply Online For A Credit Card - How To Choose A Card?
The best type of credit card for you will be dependant on how you intend to use the credit card. Are