As I previously posted money buys you time to do the things you want to do in your life. When you have positive new worth you can start measuring in months and years the amount of time you get back by avoiding frivilous spending. But what if you have a negative net worth? Most of us will work around 2000 hours a year, for some as much as 2500 if you’re holding multiple jobs. If you have negative net worth you’re basically paying your employer for the privilege to go to work.
2000 + hours of work and none of that labor was yours. You didn’t earn any time back, instead everything that you have earned goes to pay off debt. Your money doesn’t work for you, instead you are working for the privilege of paying back money. I read somewhere that there are two types of people in this world: those who pay interest and those who collect it. You should always look at your finances if you’re doing the lending or paying the lender. I can’t help you with money saving tips you can look here or here. This blog wants you to get into the right mindset to get out of debt and build a positive net worth.
First of all you need to be sick and tired of your debt. You need to get pissed knowing that all your hard work is for nothing as your debt owns you.
Once you’re sick enough of your debt you need to make a plan. Planning means budgeting, knowing where all your money goes and cutting out all the useless crap you don’t need. Remember how many hours you need to work for everything.
Make sure your plan has timelines with benchmarks.
Don’t make your plan vague. Why have a plan if you can’t measure it. Don’t say you’re going to pay off $10,000 in a year, plan to pay off $2,000 within three months, $5,000 in six months, etc. Make aure you adjust your plan accordingly if you’re behind in your goals.
Enough with the excuses, it’s going to hurt. If it doesn’t you’re not doing enough.
Making large cuts to pay off your debt should hurt. If it doesn’t hurt than you haven’t cut enough. Until you have a positive net worth none of the hours you work belong to you. To get a positive net worth you need to end all excuses and stop complaining. Achieve your freedom from your debt.
Do you have a negative net worth? What are your plans to get out of debt? If you don’t have debt what do you do to stay out of debt?