Lie #1: Debt is Normal
A shocking 77% of Americans have some type of debt. People say it’s okay to have student loans and car payments. Not really, as this keeps you from building wealth and the paycheck to paycheck lifestyle that this creates only leads to unnecessary stress.
Lie #2: I have plenty of time to plan for my financial future
If you understand the importance of compounding interest, you know it’s important to start saving as soon as possible because this allows your money to grow quicker and requires less contribution vs. waiting until later to get started. Lie #3: You don’t make enough money to live debt free
I’ve seen individuals prioritize debt elimination even though they were in bankruptcy. All it takes is a made up mind and the rest will take care of itself.
Lie #4: The sacrifices aren’t worth it
I can tell you from personal experience that there is no greater feeling than eliminating debt and using that cash for wealth building, to splurge, travel or do things that you couldn’t do while in debt. Lie #5: Having a budget limits your freedom
Actually a budget gives you permission to spend your money as you know where it is going and allows you to be in control of your finances. Budgeting isn’t hard but does take some effort. Use an app like EveryDollar to keep track of your expenditures. Lie #6: You need to keep up with the Joneses
This mentality of doing or acquiring something just because your neighbor or friend does is a sure way to keep you broke. Don’t believe everything you see online as social media is flooded with fake lifestyles that do not get to the root of helping someone become happy & fulfilled. Lie#7: I want it and I want it now
Of course you deserve to have things just like the next person. But, is this thing worth you getting more into debt and falling further behind on establishing that emergency fund? Between the credit cards and buy now and pay later offerings, that’s what will happen as you pay interest to use these financial products which are designed to strip you of your money in a silent manner.
Lie #8: Not using debt is a scary lifestyle change
If you’ve always been in debt, this may appear uncomfortable at first, but you can live without debt. You can use a debit card instead of a credit card, and you can use cash also. This adjustment to having money leftover at the end of the month for savings or do whatever with, will quickly help you get over being in debt.
Lie #9: Debt isn’t a big deal
As long as I make the minimum payments each month, it’s not big deal. But actually, that credit card is costing your 18-30%+ in interest, and you also pay interest on that car balance and student loans. The hidden fees and interest in these products makes it feel like you are barely above water when making the payments and the balance doesn’t move.
Lie #10: You don’t need your spouse to be on the same page
Money is the leading cause for divorce and can quickly ruin a good relationship. So, get on the same page as soon as possible because at the end of the day it’s our money and our debts. Lie #11: You need a credit card for emergencies
That’s completely false as you only need access to cash or a debit card to pay for emergencies that come up. This is where an emergency fund comes in handy as it allows you to live worry-free in regards to addressing Murphy, when he comes around. Lie #12: Getting out of debt just isn’t possible
We all should know that this isn’t true as I have helped countless individuals reach the goal of debt freedom over the years. It isn’t easy but it is possible if you put forth the effort and stay committed to the process. Look, I know trying to pay off a mountain of debt is challenging. There’s no sugarcoating that. But if you commit to your debt elimination plan and take it step by step, you too can enjoy the freedom that millions have realized by eliminating debt. Let’s go...
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