Transforming Your Debt Into Wealth
The first step to getting out of debt and into wealth is to change your mindset. You must change the way you think about money. Everyone thinks either negatively or positively about money.
For example, Katie’s parents struggled with their finances during their marriage. As a child, Katie listened to her parents argue about money all the time. At Christmas, Katie worried because she knew her parents didn’t have the money to buy presents and she didn’t want them to feel bad because of it. Here’s a great example:As an adult, Katie began saving money as soon as she started working. She built up a nice padding, then one day Katie decided to go on a cruise with a group of friends. “I’ve got all this money in savings,” Katie thought. “I can afford to splurge.” Katie enjoyed her vacation, but spent nearly all her savings.
Before long, Katie began to accumulate credit card debt. She began accepting one credit card offer after another, paying off credit cards with other credit cards. Soon, she fell behind on car payments. As Katie’s debt grew, so did her anxiety and stress.
Katie couldn’t understand what happened to her. She couldn’t comprehend how she’d managed to get into so much debt in such a short amount of time. But you see, because of Katie’s experience as a child, she was predisposed to making poor choices for herself. Because of her parents’ inability to provide for her as a child, Katie grew up with a mentality that she could do everything and have everything herself.
Within a few short years, Katie paid off all credit cards and cut them up. She began doubling up payments on her vehicle until it was paid off. Now Katie lives debt free. Better than that, she has a year’s worth of savings, in case something happens to her job. She pays cash for everything she purchases. Katie has turned her debt into wealth. And so can you.
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