In this video I’m going to teach you five
ways to get out and stay out of debt. Stay tuned. Welcome to white board finance where I help
you master your money and build your wealth. Today we’re talking about the dreaded D word
debt. Everybody has debt. At some point in their lives some people can’t
live with it. Some people can’t live without it. But today I’m going to talk to you about how
to get rid of it and keep it out of your life for good. The first benefit of not having any debt is
peace of mind having peace of mind is like having freedom. You don’t owe anybody anything and you don’t
need to worry about paying back outstanding debts. Another benefit of having no debt is that
it’s easier to deal with like situations. Guys life happens to everybody and it’s a
reality whether it’s job loss a loss of a loved one a car breaking down health issues
all these things cost money and there’s so much harder to deal with when you have outstanding
debt. The third benefit of not having any debt is
that you’re able to save more and invest more. So if you don’t have any outstanding debts
instead of paying those debts every month you can invest in a stock portfolio. So not only are you not losing money you’re
actually saving investing and growing your money. Number four giving to others when you have
no debt. It’s so much easier to give to others whether
it’s through your time whether it’s through money whether it’s through volunteering being
able to give is not only rewarding but it helps out others that are in need. So keep that in mind once you become debt
free even if you do have that you can give. But again it’s so much easier when you don’t
have debt to be able to give to others. Now that we’ve talked about some of the benefits
of not having any debt. Let’s get into the first one. The first one is stop taking on debt. Guys this is very simple. It’s like an analogy of someone trying to
lose weight if you keep eating and eating and eating and taking in calories but you’re
only working out maybe once or twice a month you’re probably going to keep gaining weight. That’s the same thing with debt. If you keep spending and spending and spending
you’re probably not going to lose that debt because you keep spending that money. So it’s like trying to lose weight while still
eating. Don’t finance your lifestyle. Stop financing things like furniture if you
can help it. Cars you know things like that try and pay
in cash for everything. That way you can start getting rid of some
of that debt. Finally you want to be laser focused on the
current debt that you have. So really focus on the debts that you have
and try and pay those off first. And that way you can start taking out loans
on something that’s more important or you can continue to live debt free at that point. Number two establishing an emergency fund
of one thousand dollars. The reason this is so important is because
it’s so easy to spend a thousand dollars and not have anything set aside once a real emergency
happens. We try and save up a thousand dollars so we’re
not going back to our credit card and breaking rule number one when an emergency happens. If you need money for a flat tire or a transmission
or heaven forbid something happens to a loved one keep this thousand dollars for emergencies
like that rather than spending it number three. Budget. Ah yes the dreaded b word. So today we’re talking about two dreaded four
words the D word which is that and the B word which is budget. People hate hearing you have the budget. That’s the equivalent to like you know eating
your vegetables as a kid. However you need to operate your finances
like a business. You need to know exactly how much is coming
in via income and how much is going out via expenditures until you fully grasp how much
money you’re saving and spending and bringing in. You’re not going to know how much to spend
every month on certain items. A budget is paramount to getting rid of debt. Number four pay off your current that using
the snowball method. So what the snowball method is. It’s taking all of your debts in order from
least to greatest and paying them off as soon as possible. The reason this works is because it’s psychological
once you pay after small debt you start to build confidence and momentum and it gives
you focus on tackling the bigger debts that you may have. So typically with this looks like is some
people get rid of small credit card debt then they’ll get rid of a car loan or student loans. And then finally they’ll pay off their house. And before you know it guys you’ll be debt
free. Number five putting extra cash towards your
already existing debt. This is the hardest one to do in my opinion
because once people come into some extra money outside of their normal income what do they
want to do. They want to spend it otherwise they wouldn’t
have been in debt in the first place. So next time you get a tax refund or if you
get an unexpected bonus from work or whether you sell some things around the house put
that towards your existing debt and it will disappear so much faster than you originally
anticipated. A little bit here and there really goes a
long way folks being debt free will ultimately leave you with more money in the bank. Less stress and more peace of mind. I think that this translates overall to a
happier and more generous person and it it’ll leave you more time to give back to your community
whether is donating your time or donating money. If you got any value out of this video whatsoever. Please subscribe below and it hit the little
bell notification so that you know when I put these videos out and any comments or feedback
that you may have to help make these videos better please leave them in the comments below. Thank you and have a prosperous day. Debt free debt free can’t touch me can’t touch
me. Free. Debt. Free.