Worried about debt? Start by putting it in the right perspective.
Debt is a double-edged sword. To a small business owner, it’s a necessary evil. To students it can seem terrifying. Debt is an investment; but, it’s also a burden. How you view debt and live with debt can shape the role that debt plays in your life.
There are two mindsets when it comes to debt: those who are “in debt” and those who “have debt”. The mindset you possess impacts every aspect of your life. Let’s take a look at these two mindsets.
The first mindset is those who view themselves as being “in debt”. These people living “in debt” feel overwhelmed, lost, hopeless, and at the mercy of a broken system. Additionally, they live as if the money they are borrowing is theirs and spend it however they wish! Their spending habits tend to extend beyond their means because after all, “I’ll have to pay it all back, anyways!”
Those living “in debt” may not know how much debt they actually have, what their rates are, or what their repayment plan looks like. They live for now with a fear or disregard for the future.
This is a dangerous mindset to possess and creates significant obstacles in the future. It causes you to live passively, constantly forced to react to the environment around you.
The second mindset are those who view themselves as “having debt”. Those that have debt view debt as an investment, acknowledge the risk, have hope for the future and embrace the challenge. They live well within or below their means with the understanding that money borrowed is much more expensive in the future.
Those that “have debt” know the total amount they owe, what their rates are, what their repayment plan looks like and they have a plan to repay their debtors.
Those that “have debt” utilize their current situation as a launching pad towards a future of affluence.
Which one of these best describes your current situation? Hopefully, if debt plays a role in your life, you view yourself as “having debt” and not living “in debt.” However, you may have realized that your current lifestyle reflects someone who is living “in debt.” The good news? It’s not too late to change your future. Here’s how:
Change your Mindset, NOW!
Your mindset shapes everything you say and do, especially when it comes to your viewpoint on debt. You need to start viewing debt as something you possess. Debt is an investment that you have complete control over. If you’ve been playing the victim card, now’s the time to turn it in. You no longer are living in debt. You’ve got a plan for future success and debt is only helping you get there.
Get a Plan together.
Now that your mindset has changed and you understand that you “have debt”, you need to put a plan together. Start with why? Why have you accumulated the debt you have? What dream are you chasing? Put that dream front and center and plan your life around how you’re going to get there. If you don’t budget or feel that you aren’t wise with your money, give us a call or send us a message and we’ll send you a book to help get you started.
With a renewed mindset and a plan in place, it’s time to take action. Rid yourself of the old habits you had while you were living “in debt”. This won’t be easy, you’ve probably become accustomed to enjoying things that are, frankly, beyond your current means. Debt is an investment and requires sacrifice. It’s time to start living appropriately.
Your debt should never control you. You are always in control of your financial situation. Regardless of your level of debt, there’s a way to leverage every penny of interest into a future full of dollars.
Live in joy, live in love, but never live “in debt”.
Your SIDECAR Team