Let’s Destroy Some Debt…
by Beau Henderson
Over the past few weeks I have been working with a wonderful group of folks out at Highlands United Methodist Church. We have been studying the foundations for financial freedom and this week’s topic of debt is a big one.
Truth is, we live in a nation of debt.
It is the culture we’ve been sold since before we could talk. I recently came across the following quote that described the average person as:
“Someone who drives on a bond financed highway in a bank financed car fueled by charge card financed gasoline, going to purchase their furniture on an installment plan to put in their mortgaged home.”
Wow! My message to you today about debt begins first with what it is and second with what to do about it. The Bible verse from Proverbs 22:7 reminds us that, “The rich rule over the poor and the borrower is a slave to the lender.” In other words:
The more debt we have, the more we become servants.
Debt is a form of slavery. The more we have to serve our debt, carrying heavy balances and minimum monthly payments, the less freedom we have to steward our money in the way we choose.
Debt also comes charged with fear-based emotions. How can you take those feelings of shame, guilt, and humiliation, and turn things around for yourself? How do you get out from under the yoke of slavery debt?
1. The first thing you need to do is identify the lesson so you don’t repeat the same mistake again.
Statistics show that nearly 70% of all people who go through foreclosure and bankruptcy end up filing for bankruptcy AGAIN as soon as they qualify for credit! Now, we all make mistakes. But focusing on your regret, shame, and guilt will not keep you from making them again! Before moving forward, identify the lesson.
Release yourself from the guilt and the shame and focus your energy on finding out the error in your thinking so that you don’t repeat the same mistake again!
2. Accept full responsibility
When something bad happens or doesn’t go your way, it’s easy to convince yourself that the world is out to get you, that some things just aren’t meant to be, or that you have horrible bad luck. This way of thinking is a recipe for staying stuck, especially with regards to finances!
Not accepting responsibility leads to repeating the same unhealthy choices, all the while hoping for a different outcome!
This kind of behavior is a definition of insanity that at one time or another we are all guilty of. Regardless of who promised you what, when it comes to your money, you are responsible for the choices you make. By accepting that, you put yourself in a position of power, giving yourself full permission to better steward what you have.
Remember, no matter how bad the debt, Life provides us with the exact curriculum we need. The lessons we learn, however painful, provide the wisdom we need in order to grow and achieve ultimate fulfillment.
3. Live below your means
Now that we have a new perspective on our mistakes, we can begin applying this one basic principal to get us moving from where we are now, to where we want to be. Our culture dictates we should spend every penny, and then borrow or finance as much as our creditors will allow. But now, you know better!
Whether you earn $200,000 or $20,000, you can become wealthy if you have more coming in than going out.
Living below your means is the way to accomplish this, and it is one of the key principles to living rich. Do the hard work now of paying down your debt. Set aside an amount every month, and over time, when the debt is paid off, you will be able to double your monthly savings without having to spend a penny more! Do the hard now, and the easy will come later.
Making debt reduction a priority and learning how to live below your means puts you in a position to achieve financial freedom and your definition of a RichLife. Make doing hard/easy a part of your plan for financial freedom – deal with your debt now by investing in your RichLife!
How do you deal with debt? What is your plan for living on less than you earn?
Send us your story or call in to our show! Your example could make the difference in someone achieving their RichLife. Be blessed and live rich!
Follow the complete, step-by-step process outlined in Beau’s book, The RichLife, 10 Investments for True Wealth and discover your RichLife! Get clear about your priorities, life purpose, and finances. Begin building your blueprint for true wealth at: http://www.richlifeadvisors.com