Monthly Archives: May 2015

Get out of Debt….and Stay Out! Part 1

Practical Tips, Tricks, Techniques

During Q2 of 2015 we are examining not only the importance of but also the power of budgeting. Over the years I have learned that less than 5% of the population has a budget and less than ½ of these folks actually track their actuals against their projections. While there are a few reasons why this foundational practice is not followed by so many, one major barrier to folks tracking their inflows and outflows is debt. As such, how do you get out of debt?

The biggest reason people find themselves mired in debt is often due to one of the three D’s: divorce, disability or disaster. I EF_Expect Inspectunderstand “life happens” as it has happened to me. However, the behaviors and dispositions I had in place prior to the “Bid D” that struck my life are what allowed me to rise out the valley of debt (and despair) a lot faster than those without these behaviors already in place. 

As such, what DO those who have money, who are not in debt, who have “wealth” actually DO differently that allows them to not only overcome a major setback but to have even more?

Those who not only survive but THRIVE understand the following:

  1. Respect the finite nature of money: If you only have a $100, you cannot spend $200. Period. In fact, you cannot spend $101. You cannot spend what you do not have, Period.
  2. Save!: Embrace the truth that NOONE will save for your future. As such, you MUST save a portion of every dollar you make. Many will advocate 10% but the wealthy save 20% or more of every dollar they make. The amount you save is the difference between surviving and thriving!
  3. Wants vs. Needs: Live the capital “T” Truth that life is mostly a series of “wants” and not “needs.” As such, do not allow yourself to use language such as, “I need to send my child to private school,” when you have no money set aside for your own retirement. Or, “I need to get my nails done” which takes at least $50 every month. You must learn the Truth that every time you cave in to a “want” you actually take away from a legitimate “need.”
  4. Budget: You MUST have a budget that you actively manage. As such, you MUST track your inflows and outflows. You cannot expect, what you do not inspect.  You cannot expect wealth and financial freedom if you do not inspect where the money is going. 

The reality is, each of the four points listed can consume a few pages each if we were to truly dive into each of them. However, because we have only touched the surface and because there are four more tips, I encourage you to mediate on what has been stated so far and tell me what you think. 

Don’t forget to return for the next post to learn about the four remaining tips to get out of debt and stay out!

If you are someone who wants MORE and you are ready to not just gain the knowledge but to understand the application, the wisdom, the HOW TO, please reach out and let’s walk through the First Step of my “Four Steps to Financial Freedom” process. The “fee” is an hour of your time and I will even buy the coffee! (Unless we meet virtually in which case I will send you a Starbucks card ☺) 

Epiphany Financial is a wealth education company established to ensure individuals, families and businesses get the most efficient use of their money so that you can focus on that which really matters: faith, family and community

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