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| 7 Ways To Free Yourself From The Curse of Debt |
1. Give back to help others prosper.
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| Hands holding money: Give back |
This is a principle that was instituted from the days of old. It means to give to others with a cheerfully and voluntarily heart, a portion (biblically, a tenth) of what you earn, without any form of expectations. Your blessing is in direct proportion to your selfless giving or service. According to social psychologists, the Law of Reciprocity, says that when you do something nice for someone, he/she will have a deep-rooted and psychological urge to do back something nice for you. In fact, they may even reciprocate above and beyond what you have done.
As stated earlier, The Bible encourages giving back in the form of tithes and offering. This is a tradition dating back thousands of years before Christ. Some people may confuse this form of giving for taxation. Except, taxation is not voluntary it is forced. You must contribute to it whether or not you want to or face possible fine or imprisonment. Tithes and offering were designed to support religious leaders who dedicate their time and energy in doing Godly works and humanitarian services. This includes, but not limited to, spreading the gospel, helping and healing the sick and afflicted without having to worry about their financial needs and obligations. It is said, you cannot, nor should not, expect to be blessed if you withhold or steal from those who bless you/others.
Mind you, to give back so others can prosper doesn't necessarily have to be a financial charity. It can be in the form of giving a helping hand physically, being there for someone emotionally, praying with someone, mentoring another, or assisting in any way possible. Your time is just as valuable as your money.
So, what exactly does this mean? Simply put, it means to stop the cause of debt. Resist the urge to spend frivolously. Find the source of the trigger that causes you to spend frivolously and change it. By changing the trigger, you prevent the behavior from occurring resulting in a better financial reward. So let's say when you leave work you go pass the mall or your favorite snack shop which triggers you stop to browse. Now you end up buying things you had no intention to buy or need. To prevent this frivolous spending, change the trigger—your route home. This way you stop the needless spending which will result in a better reward—saving your money. Will Rogers once said: “Too many people spend money they haven't earned to buy things they don't want to impress people they don't like.” To add to this, there is also an old Jamaican proverb that says, “Show off brings disgrace.” Meaning, the more you shop to impress people or make yourself feel better, the bigger the hole you dig for yourself to fall into. At the end of the day, nobody cares.
With that said, the best way I cure this curse of debt is to stay out of the malls. Although, this can be a blessing and a curse simultaneously. For one, it prevents extraordinary and frivolous spending; for the other, it hurts the economy. If nobody is shopping the economy is declining. To solve both these two problems buy quality products that will last longer but cost a little bit more; this way everybody wins.
Another way is to eradicate social media from your life. People are buying more than they need to because they have created a habit of posting everything they do and wear on social media. So they feel that they can't wear an outfit again because the world has already seen them in it. This forces them to go out and buy something new. “Out of sight, out of mind.”
Being a reformed shopaholic and a person who loves to adorn myself and home with beautiful things, staying away from malls and shopping sites helps me curve this bad habit and reduced the urge to buy things I don’t need. Another thing I have done is reduced my social media time. “What eyes don’t see, heart don't leap.”
The financial matrix is real. It was designed to keep you going down the rabbit hole until you get trapped. Limit your exposure to advertising. Advertisements create a desire for “things you don't need,” and that desire creates unnecessary spending. It keeps you stuck in the financial rut. Change your financial habits and get out of debt.
Basically, if you owe money, don’t go out looking to borrow more money before you pay off what you already owe. Don't increase your credit simply because you can. Try to make the best use of what you already have until it is necessary to change it. Try not to focus on what other people are doing, lest you be tempted to craving the same. Do not make unnecessary purchases you don't need or cannot afford to pay for with cash.
As stated earlier, The Bible encourages giving back in the form of tithes and offering. This is a tradition dating back thousands of years before Christ. Some people may confuse this form of giving for taxation. Except, taxation is not voluntary it is forced. You must contribute to it whether or not you want to or face possible fine or imprisonment. Tithes and offering were designed to support religious leaders who dedicate their time and energy in doing Godly works and humanitarian services. This includes, but not limited to, spreading the gospel, helping and healing the sick and afflicted without having to worry about their financial needs and obligations. It is said, you cannot, nor should not, expect to be blessed if you withhold or steal from those who bless you/others.
Mind you, to give back so others can prosper doesn't necessarily have to be a financial charity. It can be in the form of giving a helping hand physically, being there for someone emotionally, praying with someone, mentoring another, or assisting in any way possible. Your time is just as valuable as your money.
2. Change your financial habits.
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| Lady shopping |
With that said, the best way I cure this curse of debt is to stay out of the malls. Although, this can be a blessing and a curse simultaneously. For one, it prevents extraordinary and frivolous spending; for the other, it hurts the economy. If nobody is shopping the economy is declining. To solve both these two problems buy quality products that will last longer but cost a little bit more; this way everybody wins.
Another way is to eradicate social media from your life. People are buying more than they need to because they have created a habit of posting everything they do and wear on social media. So they feel that they can't wear an outfit again because the world has already seen them in it. This forces them to go out and buy something new. “Out of sight, out of mind.”
Being a reformed shopaholic and a person who loves to adorn myself and home with beautiful things, staying away from malls and shopping sites helps me curve this bad habit and reduced the urge to buy things I don’t need. Another thing I have done is reduced my social media time. “What eyes don’t see, heart don't leap.”
The financial matrix is real. It was designed to keep you going down the rabbit hole until you get trapped. Limit your exposure to advertising. Advertisements create a desire for “things you don't need,” and that desire creates unnecessary spending. It keeps you stuck in the financial rut. Change your financial habits and get out of debt.
3. Stop increasing your debt.
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| Male banker dumb-folding a woman with no new debt sign |
Basically, if you owe money, don’t go out looking to borrow more money before you pay off what you already owe. Don't increase your credit simply because you can. Try to make the best use of what you already have until it is necessary to change it. Try not to focus on what other people are doing, lest you be tempted to craving the same. Do not make unnecessary purchases you don't need or cannot afford to pay for with cash.
Leaving your credit cards at home and only bringing them with you for intentional purchases like big ticketed items is a great way to cure this curse. Train or discipline yourself to save first and spend later. Practice to delay your gratification. Before you borrow, ask yourself these two questions:
A lot of people like to gloat about the size of their house and the make of their vehicle. The wise person knows better. Most of us don't really own anything, we are just in a whole lot of debt. You don't need a five bedroom house if you family only consist of three or four people. You don't have to get a Benz just because your credit can support it. Think about what you are doing and create a plan for financial freedom. What if something changes today? Could you carry on the same? Is Life only about impressing others? Or is it more about creating a legacy?
If you haven’t earned it, don’t spend it. Be creative and resourceful. Fix and repurpose things you already own instead of purchasing new ones. It’s not what you make, it's how you manage it. Two steps to stay within your means are:
1) Develop emergency funds to protect you from the impact of a crisis or for when you hit rock bottom. Set aside an amount from each pay cheque until you get to an amount where you can breathe. When you are already in debt it is too late. So start early and keep building until you have at least six months to a year worth of expenses in savings that you don't touch, save extended unemployment, major vehicle or home repair, or sudden illness. God knows, I have been there. If however you find yourself hard pressed, living from pay cheque to pay cheque and in a lot of debt, here are three things you can do to start one, even up to one thousand dollars:
This one is a no-brainer but how many of us actually do this? To admit, I certainly had a hard time with it too. More often than not, I would find myself juggling payments to make ends meet. Sometimes even returning a purchase I made the month before to pay for the current month's bills. I no longer need to do this, but old habits die hard. The trick is to discipline yourself to live within your income threshold: Here are 3 disciplinary actions you can take:
Keep on cutting and editing stuff from your budget until you have a surplus. If and when in doubt, always go back to principle number 5.
In summary...
- What are my motives/why am I borrowing this money?
- What is my ability to repay this loan?
If you can’t afford to pay it back without increased hardship or borrowing more to repay it, you shouldn't borrow it. Rewards come when rightfully earned; otherwise, you are setting up yourself for financial ruin.
Protect your integrity with your creditors so if and when you are in dire straits, you can go back to them and rest assured that they will gladly lend to you again. Remember, you are limited only by your resources. But bear in mind, when you owe too much money, you cannot feel completely happy or even sleep well at nights.
Too much debt can increase your stress and anxiety level. It can also create a scarcity mindset instead of an abundance mindset. Consider this: Your birthright is to experience freedom and abundance.
The moment you borrow from someone, you become his or her slave. You will have neither freedom nor abundance. The moment you cannot afford to repay a debt, the bill collector can and will repossess whatever it is you thought you owned. “The borrower is a slave to the lender.” (Proverbs 22:7). For these reasons, strive to pay off your debts as soon as possible and be free.
4. Pay off your debts.
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| A man with his hand on his head looking stressed |
Too much debt can increase your stress and anxiety level. It can also create a scarcity mindset instead of an abundance mindset. Consider this: Your birthright is to experience freedom and abundance.
The moment you borrow from someone, you become his or her slave. You will have neither freedom nor abundance. The moment you cannot afford to repay a debt, the bill collector can and will repossess whatever it is you thought you owned. “The borrower is a slave to the lender.” (Proverbs 22:7). For these reasons, strive to pay off your debts as soon as possible and be free.
5. Live within your means.
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| A house in a man's hand |
A lot of people like to gloat about the size of their house and the make of their vehicle. The wise person knows better. Most of us don't really own anything, we are just in a whole lot of debt. You don't need a five bedroom house if you family only consist of three or four people. You don't have to get a Benz just because your credit can support it. Think about what you are doing and create a plan for financial freedom. What if something changes today? Could you carry on the same? Is Life only about impressing others? Or is it more about creating a legacy?
If you haven’t earned it, don’t spend it. Be creative and resourceful. Fix and repurpose things you already own instead of purchasing new ones. It’s not what you make, it's how you manage it. Two steps to stay within your means are:
1) Develop emergency funds to protect you from the impact of a crisis or for when you hit rock bottom. Set aside an amount from each pay cheque until you get to an amount where you can breathe. When you are already in debt it is too late. So start early and keep building until you have at least six months to a year worth of expenses in savings that you don't touch, save extended unemployment, major vehicle or home repair, or sudden illness. God knows, I have been there. If however you find yourself hard pressed, living from pay cheque to pay cheque and in a lot of debt, here are three things you can do to start one, even up to one thousand dollars:
2) Set money aside for your retirement. The joke is, nobody wants to die, yet nobody wants to talk about their old age. This can be done by contributing to your company's plan or talk to a financial advisor to establish one on your own. Not dying means living until you are old. So if you are planning to not die, you best be planning how to live in your latter years.
- Take a part-time job or find some odd jobs for a month or two solely to raise the emergency funds
- Sell stuff you no longer need or use in a garage sale or on E-Bay or any other website
- Put your tax refund or company bonus towards it.
6. Spend less than you take home.
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| Hand of a person doing calculations |
This one is a no-brainer but how many of us actually do this? To admit, I certainly had a hard time with it too. More often than not, I would find myself juggling payments to make ends meet. Sometimes even returning a purchase I made the month before to pay for the current month's bills. I no longer need to do this, but old habits die hard. The trick is to discipline yourself to live within your income threshold: Here are 3 disciplinary actions you can take:
- improve/change your spending habits,
- make a rational financial decision and
- keep your expenses well below your income.
The word budget often gets a bad rap in today’s society of instant gratification. But planning for your future and managing your finance is a healthy way of life. It centers you and keeps you grounded. There is no prosperity in having debts up to your yin-yang. It only messes up your life flow. So make a plan to spend less than you earn and pay off everything you owe. To start:
- Pay off the smallest debt first and keep moving your way up the debt ladder one debt at a time until all your debts are paid off.
- Reduce your amortization period on your house and vehicle, if you have these, by committing to pay an extra $100 or more per month for each payment or switch from monthly payments to bi-weekly or weekly payment. By doing so, you could save yourself anywhere from 2 to 10 years off your mortgage or vehicle payments.
- Create a “Needs vs. Wants” analysis. Record and track all your spending for one month, or 2. Then assess the record to see what's unnecessary and stop buying them, focusing only on what you need most; until you are back in control.
“Failing to plan is planning to fail.”
7. Create a system to leverage your income.
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| A golden egg on top of dollar bills money on a golden background |
Once you have paid off all your debts and secured your contingency funds, it's time to start making your money work for you. Speak to a wise and trusted financial advisor on how best to grow your money through investments and diversification of funds. Contrary to popular beliefs, I would say never put all your eggs in one basket. Too often we take the penny wise, pound foolish approach by trying to save on minuscule fees and disbursements and lose everything we had in the process. Weight the pros and cons to see what's truly right for you. Bear in mind that companies make mistakes too or go under. You never know what disaster may befall a company. Consider mutual funds, real estates, business ownership and so forth.
Stay away from those get rich quick schemes and protect your credit and identity. It is imperative to try and get a good grasp of the velocity of money—money in, money out. How does it really work? There is a method to the matrix. It takes money to make money; so slowly down and move away from the consumer mindset towards an investor mindset. Lose the piggy bank mentality. Nothing grows in the bank. The bank is just a temporary parking lot until you decide where you want to go.
And finally, never kill the goose that lays the golden egg. Meaning, don't quit your job prematurely to go chase your dreams. Or walk away from your main source of income until you have secured something else.
Stay away from those get rich quick schemes and protect your credit and identity. It is imperative to try and get a good grasp of the velocity of money—money in, money out. How does it really work? There is a method to the matrix. It takes money to make money; so slowly down and move away from the consumer mindset towards an investor mindset. Lose the piggy bank mentality. Nothing grows in the bank. The bank is just a temporary parking lot until you decide where you want to go.
And finally, never kill the goose that lays the golden egg. Meaning, don't quit your job prematurely to go chase your dreams. Or walk away from your main source of income until you have secured something else.
There once was a man and his wife who owned a very special goose. Every day the goose would lay a golden egg, which made the couple very rich."Just think," said the man's wife, "If we could have all the golden eggs that are inside the goose, we could be richer much faster.""You're right," said her husband, "We wouldn't have to wait for the goose to lay her egg every day."So, the couple killed the goose and cut her open, only to find that she was just like every other goose. She had no golden eggs inside of her at all, and they had no more golden eggs.The moral of the story: Don't be greedy, don't be hasty, don't be lazy and don't be a show-off. Create a system that works—plan, act and persevere. Think, how is doing this going to get me closer to my goal of financial freedom or security?
In summary...
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| A man with arms outstretched to the sky |
Put a proper estate plan in place—Not just a will—protect your legacy. To recap, give and be blessed. Figure out what habit is causing you to get stuck in the financial matrix and stop it. Stop increasing your debt. Pay off whatever debt you owe; one debt at a time. Create a financial plan for debt freedom. Control your spending habits. Invest and diversify your funds. Wealth is to stop working yet maintain the same lifestyle for a sustained period. Perception is not everything; it is only a deception that ruins lives.
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Andrene Gregory is a life coach with certification in LifeSkills training and Personality Dimensions. She helps empower adults to live a strength-based life, regain their confidence and find the courage to get through life's challenging situations. Her unique approach to getting desired results includes personality assessment, self-knowledge, goal setting, and action planning.
Andrene provides one-on-one coaching and group workshops. Find out more at www.aggiestrongulc.com.
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Andrene provides one-on-one coaching and group workshops. Find out more at www.aggiestrongulc.com.
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