How to Stop Drowning in Debt

Over the years I have coached and spoken to many entrepreneurs surrounding money, debt, and business finance. I remember just over a decade ago, I was massively in debt to the tune of $172,000. I always share the story of climbing out, and the challenge of conquering debt and kicking it in the face.

The truth is that many of the business owners I talk to aren’t scaling walls or kicking obstacles in the face. They claim to feel as though they are drowning. They labor all day to get money only to watch it disappear under a wave of debt. They swim up towards the light and the surface only to be knocked back down by another wave, frequently below where they started. Not only are they drowning, but they are also not rising to the surface to breathe. Can you identify? Do you experience this in your personal or professional life with regard to money and debt?

  • Care you even to avoid drowning? Debt has become a way of life and a way of thinking for many people, who are drowning in it. Are you happy with the way you live? If so, nothing else on this blog really matters. Continue reading if you’re sick of being in debt and drowning in it.
  • Forget becoming a millionaire for a minute.  For now, have a plan to get to the surface.  Create a baseline savings, and then pay off all debts except your house.  Dave Ramsey would call these ‘Baby Steps 1 and 2’. When you have no savings and all your income is eaten my monthly commitments to unnecessary debt, that is where drowning occurs.  When all you want to do is breathe, all that must happen is popping your head above water to grab some air. What is your plan to get to the surface?  How long will it take?
  • As you swim, keep in mind that each stroke, penny, dollar, and small victory counts. You pay off your debt $1 at a time whether you are $50,000 in debt or 500 feet under water. Do you approach debt each day by putting one foot in front of the other?
  • Money is simple.  It flows one of two ways.  It flows to you, or away from you.  If you have more leaving then coming, you lose.  More coming than going, you win. Changing your financial snapshot requires creating new habits, wirings, and mindsets surrounding money and how it flows in and out of your life?  How does money currently flow in or out of your life?
  • As you look forward, look back a little.  I encourage you to look back every 6 months to a year to see how far you have come towards the surface.  Many times, as you are still drowning, it is easy to forget that you are now only 25 yards away from the surface, not 500.  Looking back is important, not to remember the past and the pain, but to see the advancement.  When is the last time you have looked back to see how far you have come?
  • Label and categorize your financial out-go. Determine if your payments are absolute needs, or only personal wants. Which of these out-gos currently fuel your debt? Is it truly a need?

I hope this inspires and ignites you to own your financial situation with excellence.

Click on the coffee cup to the right to continue to enjoy a weekly caffeine fix with me. I’ll send you a free toolkit for starting a business when you do. It is jam-packed with information that will motivate and inspire you to own, operate, and live your life and business to the highest standards.

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