Learn how to pay off debt and how to invest in index funds
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How To Pay Off Debt
Make it a Desire
Make it a Desire
Make it a Desire
You must have not only a desire to get out of debt, but a burning desire.
Napoleon Hill said, whatever you want,
it must be a "burning desire".
It must be your priority,
something you think about all the time.
Create a Puzzle
Make it a Desire
Make it a Desire
Too many of us are focused on the negative feelings our debt produces - shame, fear, guilt, scarcity, avoidance, etc.
Don't get consumed with these feelings.
Instead, see your debt pay-off journey as a game. It's a puzzle for you to figure out.
Get Organized
Make it a Desire
Track Your Debt
Find all your accounts -
online and physical statements.
Getting organized reduces uncertainty,
which reduces stress.
Transparency and clarity give you the power to make better decisions.
Track Your Debt
Create Your Strategy
Track Your Debt
Writing down your debt gives you a view of the whole picture.
Tracking your debt:
- shows you where you are today.
- gives you better decision-making ability
- allows you to create a strategy to pay it off
Set Financial Goals
Create Your Strategy
Create Your Strategy
Now that you know how much debt you have, you can create a goal.
How soon do you want to be debt-free?
How much can you pay off each month?
How much interest are you paying?
How can you earn extra cash to speed it up?
Create Your Strategy
Create Your Strategy
Create Your Strategy
There are two popular strategies.
Debt Snowball
Pay off the smallest account first.
Debt Avalanche
Pay off the highest interest account first.
Start with Bad Debt
Start with Bad Debt
Start with Bad Debt
Regressive debt is bad debt; it's debt on depreciating assets.
In others words, it's non-real estate debt.
Paying off bad debt is the first step to financial freedom.
Make this priority #1.
Make More Income
Start with Bad Debt
Start with Bad Debt
The best advantage you can give yourself and earning more money. Every extra dollar you earn is another dollar toward your debt.
Get a part-time job, volunteer for over-time, find a better paying job, or create a side-hustle.
Focus on One Debt
Start with Bad Debt
Focus on One Debt
It's easy to get overwhelmed, especially if you have a lot of debt.
Depending on your strategy, pick the first account and focus all of your energy on it (while continuing to only pay the minimum monthly payments on all others).
Go Lean
Reduce Interest
Focus on One Debt
The more expenses you can reduce,
the faster you will get out of debt.
You don't have to give up everything,
but you must prioritize.
What are your true basic needs?
What can you live without in the short-run?
Reduce Interest
Reduce Interest
Reduce Interest
Interest gets expensive quickly.
A $20K loan at 5% is $83 every month.
A $50K loan at 7% is $292 every month.
1. Refinance into a lower rate.
2. Take advantage of 0% credit deals.
Sell Anything
Reduce Interest
Reduce Interest
Selling something you no longer use or downsizing is a great way to reduce your debt quickly.
Do you have collectibles, an extra car, boat, motorcycle, or home which is holding you back?