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6 Steps To Eliminate Debt And Enjoy Financial Freedom For New Parents
Debt statsistics that will blow your mind
In 2010, a consumer census showed that approximately $2.4 trillion was the total debt of Americans. This actually translates to $7,800 per person living in the United States. Moreover, it is important to mention that this is just consumer debt. This means, loans and real estate debts are not yet included here!
If you have not taken immediate control of your finances, perhaps now is the time. But the real question is how you will get out of debt without putting additional strain. Instead of waiting for the government to bail you out – which is unlikely to happen, you’d better start making changes now.
1. Have a financial goal
It’s prudent to just think of paying off your debt. But the truth is you need to deal with the matter in a more aggressive way. How much savings do you want? Yes, don’t just think off eliminating debt, rather, think of your financial emancipation.
Likewise, put a date to this goal of yours. This way, you get to see how far close or how far you are from your target. In addition, placing a date to your goal will help make it more concrete.
Furthermore, be realistic with your goal. It is always a good idea to challenge your self beyond mediocre. Put everything in the equation from your current debt, sources of income and expenses so you can determine what is feasible.
2. Determine the distance from success
Next, it is imperative to put a concrete distance between your current status and your goal. This goes beyond merely setting the date. Rather, objectively evaluate how far off you are from your target. This will give you a better inkling on what change you need to do. However, don’t be discouraged if you see you’re light years away.
Are you financially secured?
3. Plot your course
Once you have determined where you are and where you want to go, it’s time to plot your course. This is best done by looking into your current financial activities. This includes your expenditures, loans, and everything that involves money and investment. Moreover, you need to check your financial habits. Next, you have to identify all the changes that have to take place. Even the simplest things matters - from buying designer clothes versus going for functional garments to dining out or cooking at home.
You realize that some lifestyle changes are in order. You might not like it at first, but you’ll thank yourself in the future for making the right move.
4. Go do it
It’s now time for you to put your plans into actions. Of course, this will be easier with all your friends and family behind you. The changes you’ve identified will definitely be difficult at first, but your tenacity and your fear of going broke will help you through it.
Remember that surviving debt requires commitment. But this can be testing so get as much support as you can get. Surround your self with motivators from your family friends and even the thought of financial freedom can push towards success.
5. Check where you are often
Anther important step is to constantly check your bearings. Are you on track or are you drifting away from your goal. This helps put your target in constant check. Remember that reaching your financial goal is a process. As such, you need to be aware where you are at all times. It’s easy to get derailed. So always be on the look out for any changes that might hamper your success.
6. Make changes when needed
When ever needed, adjust your activities or your actions. This will help fine-tune your steps towards erasing your debt. Furthermore, this will help lessen the stresses that you will face during the journey.
I know only a few people who are without debt. They have made the transition from a mere statistic to financial freedom not over night. Rather, the journey was arduous but it ended with financial emancipation.
Families need to recognize the importance of having financial security. As a new dad, I felt the stress of having to provide for my family. What's great is that i have a wonderful wife who supports and help me every step of the way.
- What's the greatest hindrance to your financial freedom?
- What are you doing right now to get your finances on the right path?