How do I deal with debt?
Don’t deal with debt like an ostrich does!
Today we’re going to talk about an important epidemic in our culture: The Debt Epidemic
Our team gets asked about this epidemic nearly daily. Debt is a huge problem!
Forbes Magazine reported that American’s just crossed the line for the highest debt ratio per household they’ve ever had at 12.8 trillion dollars. Globe and Mail reported that Canadian’s crossed a threshold that for every dollar of savings of net worth there’s 1.68 of market level debt.
We don’t want you to stick your head in the sand like an ostrich and trying to pretend it’s not real. This is causing you stress. This is why couples fight. This interest is robbing you of your ability to live a fulfilled and abundant time.
We’re going to share with you the three most common causes and cures for the amounting debt epidemic.
Cause #1: People Don’t Have A Budget
Every wealthy person we’ve studied in our coaching experience has a financial budget. In Big Business there’s an entire job called Chief Financial Officer. All these officers do is maintain budgets and financial integrity while keeping everyone at the company financially responsible.
When you have a budget you have the ability to categorize your money. Once you categorize your money it radically increases the probability that you will stick to it and not overspend.
We advocate for six categories:
- Big Rocks
- Debt Reduction
- Business Costs
These categories allow you to spend money on the things you value based on the parameters you set. If you want bigger parameters then increase your output of your products and services.
With a budget you’re going to provide value to you and your life based on your values and how you define success.
What’s the cure? Get a budget!
There are many resources out there to help you out.
Cause #2: Equating Self-Worth With Possession
People think that money buys them happiness. There are a ton of reasons why people believe this.
But keep this in mind: God doesn’t make any junk
The fact that you are drawing breath makes you worthy of great things, love in your life and forgiveness for what you have and have not done.
As a result of this thought process of people buying things that they don’t really value from this bad habit.
What’s the cure? Learn to love yourself for who you are and for the value you bring to others!
Cause #3: Trying To Keep Up With The Jones’
This means that people are buying things just for the optics of having possessions to try and keep up with the neighbour, colleague and so on.
If you have a budget, this can’t happen because you’re living within your means.
This is commonly tied to the self-worth cause above because the only reason you would buy things that are not truly of value to you because you’re trying to keep up with others.
This will lead to regrets and resents in the short or long term.
What’s the cure? The first two tips! Get a budget and know your self-worth.
Ask yourself this before you buy anything: Is this truly something I value? Will this help me live a more authentic life?
If it’s not then leave the thing on the shelf! You’ll find yourself living a better life.
Which one of these 3 causes and cures resonates most with you? Now go and get a plan to manage your debt or get out of debt.
If you need some help to do this then reach out to our team!