Want to become wealthy, and get out of debt for good?
Then there are three things you should be certain to stop doing right now:
- and Rationalizing
Call me queen of the obvious, but you’ve got to quit borrowing. That’s the #1 thing you absolutely must do if you want to end the cycle of debt.
It sounds a little silly to call it out like this, but we are so incredibly conditioned to using debt to solve our problems or get the things we want that we’ve got to make a permanent resolution to say “no more”. Even if something happens that’s beyond your control, or you really really want to do or buy something. Which leads me to…
Stop spending more money that you’d planned, and definitely stop spending more money than you’ve got (see #1). You’ll get out of debt faster and reach your other financial goals, which can be pretty darn awesome.
The bottom line? Only spend what’s in your hot little hands right now. While you can often make more money, you’ve got to make it before you spend it. You can’t count on whatever you’d planned on doing in the future panning out. You can’t even count on your paycheck being there, since companies could miss payroll or go bankrupt.
That means you’ve got to pay attention to what you’re spending, and stick to what will work.
Enough with the rationalizing
It’s common to rationalize our decisions. One definition of rationalizing states that it’s an “unconscious defense mechanism in which irrational or unacceptable behavior, motives, or feelings are logically justified or made consciously tolerable by plausible means.”
Basically, that means we tell ourselves that something is ok, even though deep down we know it’s not. And if you want to become debt free, it’s not ok to borrow money. For any reason. So you’ve got to stop making exceptions.
Or if you really want to leave yourself an exception, make it something like this: “I will only borrow money as a very last resort if it is literally a life or death situation.” Needing a new car is not a life or death situation. Neither is paying for college. Or repairing your water heater, going on a trip, or picking up some Christmas presents.
You can control your actions and reactions
It does take practice and time to change, but once you do you’ll wonder why you didn’t do so earlier. Because being debt free and in charge of your own financial destiny is worth it.