The 7 truths about battling debt

  1. It will be tough – There is no denying it, you will have to make some life choices if you want to break out of the endless struggle of financial confinement and climb into a new life uninhabited by the need to juggle money to make ends meet. Some sacrifice now will certainly pay dividends in the future and once you commit to your new path of financial freedom, it does get easier in the long run.
  2. Learning to say NO – As difficult as it is, living under your means will involve saying ‘no’ to your family and friends when you find yourself invited to lunch two days from pay day and you have no ‘extra’ money left over. We have all been faced with this situation and so to save face, we opt to not disappoint and dig the money from somewhere that we shouldn’t like the credit card. No, the kids don’t need that Macca’s run.
  3. There will be smiles – The deeper you get into your debt reduction plan you will start to consciously filter the things you ‘need’ against the things you ‘want’. Keeping a close eye on your finances you will start to see some major progress when you receive your monthly debt statements in the mail which will give you cause to boost your positive endorphins as you see your debt reducing. When you pay off a loan or credit card it’s such a great feeling.
  4. Jealousy abound – Unfortunately, when you reach your final goal of Financial Freedom, not everyone will be elated. Some of the people who remain bogged in their financial rut endlessly living from pay to pay may develop a sense of resentment that you ‘made it’. Stay humble.
  5. Watch the battles – Not being on the same page can cause some grief in a partnership if both parties are not committed to the plan. It’s so important to discuss the plan right from the very start and reach some form of agreement. You don’t want to reduce your credit card by five hundred dollars only to find a new set of golf clubs or Gucci hand bag tacked back onto the debt. When the need arises that someone wants to spend money outside the plan then have an agreement that a discussion/debate should take place in the event.
  6. Plan for the surprises – In some of my other blogs I talk about having an emergency fund for those sneaky surprises. Just last month my air-conditioning compressor on the Honda decided to retire and $1,500 later I have a new one. OUCH! However, I didn’t feel too much pain because we have an emergency pot for such things. Had this happened three years ago and I would be hyperventilating.
  7. You may feel isolated – Making the conscious decision to end your financial pain and take a stand against your self-imposed poverty will also mean on occasions you will make some life choices that leave you feeling a little like Nigel-no-mates. Your weekly booze up with your friends; the meet-up at the track or just pokies night at the local boozer can be a lifestyle, once given up or modified, can be painfully missed.