How to Become Debt Free! (with ease and grace)
Do you feel overwhelmed by debt? Are you ready to get out?
I know plenty of women who have pulled themselves out of debt using the exact method I’m about to teach you. It’s never too late to get yourself out. You CAN be debt-free and it’s easier than you think.
You see, money is 80% mindset and only 20% action.
I can teach you the system. That’s the easy part. Once I show you the math, you’ll see just how easy it is.
First, you need to believe it’s possible. You need to know that you deserve to be debt-free. You deserve this just as much as anyone else on the planet. Think of all of those people earning the same income as you that are debt-free and excellent at managing their money. If they can do it, YOU can do it. There’s no such thing as “I’m just no good at money” or “I just don’t have the discipline”. Human beings are all built the same. We all have choices: fear or freedom. There’s no fairy coming to save you from your debt. YOU are the hero. You have everything you need to pull this off.
So, make the decision right now: “I deserve the very best and I choose to be debt-free”. Say it!
Ok. Glad we got that out of the way.
Step 1 – Forgive Yourself
The past is the past. Leave it there.
There’s no point wasting energy beating yourself up about how you got into this situation. It’s no help. Close your eyes, put your hand on your heart and say out loud “I forgive myself for getting into debt”. Mean it.
No-one sets out to get themselves into debt on purpose. At the time, we did the best we could. Made the best decisions we could with the information and experience we had available to us.
That was then, this is now. Now you know better. You’ve felt the stress debt causes. You’ve learned. This is human. This is how we grow. It’s perfectly natural and nothing to feel ashamed of.
By forgiving yourself, you’re stepping into your power and taking responsibility for your money as at this moment.
Step 2 – How Much Debt Do You Have?
Being your own hero and stepping into your power means you’re courageous and fearless.
So why haven’t you actually looked at it yet? Your debt that is.
What are you afraid of? It’s only numbers on paper. It can’t hurt you.
It can’t hurt you.
In fact, it can only empower you. It’s more information to help you take positive action.
The only power these numbers have over your life is the power you give it. Step up. Remember the hero you really are. List out your debts on paper. It’s probably less than you imagined.
Step 3 – Conscious Spending
Assess your money leaks, ensure you’re getting the best interest rate and think before you buy. See my free Money Starter Guide to get you started on your conscious spending journey.
Remember that famous Kate Moss quote: “Nothing tastes as good as skinny feels”?
Well, my version is “Nothing tastes as good as debt-free feels”. Remember that next time you get the urge to splurge.
Step 4 – Set Up Your Debt Free Plan
I’m about to take you through a simple process to pay off your debt the pain-free way. In the mean-time, you’ve got to choose to be committed to stop debting.
You do?
Then cut those credit cards up (if you have to) or place them in a block of ice in the freezer. Anything to make them unavailable to you. Next, you’re going to enact a plan (download this spreadsheet to help).
1. List all of your debts as at TODAY from the smallest balance to the largest.
2. Make a note of each debt’s minimum monthly repayment.
3. Write down your total monthly income.
4. Work out your total monthly ESSENTIAL expenses (like rent, food, utilities, transport, etc).
5. The balance is your Disposable Income. This will be allocated to your debt reduction.
6. Set up a direct debit in your bank account to pay each of your debts’ minimum repayment automatically.
7. Set up a direct debit to pay the balance of your disposable income to your smallest debt balance.
8. Once your smallest balance is paid off, CELEBRATE!
9. Then reallocate the direct debits (minimum monthly payment + balance of disposable income) of this balance to the next smallest.
10. The next smallest balance will now be receiving:
minimum monthly payment +
balance of disposable income +
minimum monthly payment for first card.
11. Continue this process until each of your debts are paid off.
The beauty of this method is that your debts are being paid off automatically (by direct debit). Out of sight, out of mind. You can sleep better knowing you have a plan in place to get out of debt.
You are in control. This is EASY!
Download my Debt Free Spreadsheet tool here.
Step 5 – Affirmations
Your mind is powerful. Feed it powerful words and thoughts. Surround yourself with reminders to let your subconscious know how good you are with money. Say them out loud as often as you can with meaning. For example:
· I am debt free
· I am excellent at managing my money
· Money loves to flow to me
· I am an excellent saver
Add these to your screen savers, write them on your bathroom mirror, write them in your journals.
Update your Debt Free Plan spreadsheet as often as you can to see how far you’ve come. You’ve got nothing to lose and everything to gain, so give it a go.
Sending you Love, Luck and Wealth,
Other helpful resources for you:
Confessions of a Credit Card Whore
The Very Important Legal Note
Information provided by Love Luck Wealth does not take into consideration your personal financial situation and is generally factual in nature. It is to be considered general life advice for educational purposes only and does not constitute financial advice nor financial product advice in any way. Before acting, you should consider seeking independent personal financial advice that is tailored to your needs from an appropriately licensed or authorised financial adviser of which Love Luck Wealth does not purport to be.
