I’m going to say something that may require some extra thought and you may even want to hit the pause button to ponder it.
“There are two kinds of interest; the kind you earn and the kind you pay, and you can’t build wealth if you’re paying more interest than you’re earning”.
To measure how our clients are doing from year to year we use the Wealthgrade model in the Money Organizer Plan. To advance the Wealthgrade of a client who has too much debt, we focus on increasing the amount of interest they earn each year and decreasing the amount of interest they pay.
You see, if you have debt then that means you are obligated to make monthly payments to repay that debt. Imagine what would happen if instead of having to make monthly payments to your debt, you instead added those monthly payments to your savings & investment accounts.
Put another way, if you can’t add to your savings and investment accounts because you have to make monthly payments to your debt you will likely feel helpless and very insecure, which is how most people feel about their debt. We believe the best solution for this is to help folks get organized with their money by making sure we eliminate all obstacles that might get in the way of growing and protecting their assets. Debt and a lack of cash reserves as well as proper levels of insurance are the top threats to financial security and are always a priority in getting organized.
You might be interested to know that the reason we encourage folks to start with a Money Organizer Plan is in large part because of the budgeting tool within the plan. It’s called a Stress-Free Budget. Most people like the Stress-Free Budget because it gives them a guideline for where to spend their money each month. I like it because it’s so easy to understand, and because, if followed, IT WORKS!
If you want a strategy to get out of debt, here are two options:
1) If you think you have the discipline and drive to do it yourself, then go to Moneyorganizerplan.com and sign up for the Free Five-Week Challenge. This experience will also cover some behavioral issues you may have that are keeping you from getting out of debt and therefore keeping you from advancing your Wealthgrade.
2) Or, if you would like us to help you do a Money Organizer Plan and get out of debt, click on the link above and schedule a Free 15 minute call and we can talk about how we can help. When you call we will first discuss your #1 financial goal and how to reach that goal. And if we think this is the next best step for you we will provide you additional guidance on where you should be spending your money in order to reach your goals.
We take debt very seriously, and so should you, because it’s the #1 killer of wealth in America. Whether you do it on your own or seek our help, take action today and I bet you’ll begin to feel a little more at peace about your finances.