Most self-made millionaires are masters at managing debt
But they don't teach you about this in school
So let me break it down for you:
But they don't teach you about this in school
So let me break it down for you:
First step - Track your debts
Why?
Because the average person has >$38K of debt (ÂŁ30k)
This is excluding mortgages and student loans!
And I don't know about you, but being average is not part of my plan.
A big part of the problem is…
Why?
Because the average person has >$38K of debt (ÂŁ30k)
This is excluding mortgages and student loans!
And I don't know about you, but being average is not part of my plan.
A big part of the problem is…
Most people don’t know their debt load
And they don’t want to!
I get this
But when did burying your head in the sand ever get you anywhere?
Tell me which of these you have:
- Credit cards that are NOT cleared each month
- >1 store card
- A car loan
- Interest-free finance?
And they don’t want to!
I get this
But when did burying your head in the sand ever get you anywhere?
Tell me which of these you have:
- Credit cards that are NOT cleared each month
- >1 store card
- A car loan
- Interest-free finance?
It mounts up quickly!
And although it may provide access to that immediate gratification, you seek
It diminishes your ability to invest, save for emergencies, and ultimately...
Puts any chance of achieving financial freedom on hold!
To combat this...
And although it may provide access to that immediate gratification, you seek
It diminishes your ability to invest, save for emergencies, and ultimately...
Puts any chance of achieving financial freedom on hold!
To combat this...
Go through your accounts
And sum up all your debts!
Every penny.
Sounds weird
But you’ll never be able to tackle it if you don’t know what you’re dealing with!
This is the tab of my own spreadsheet where I do exactly this 👇
And sum up all your debts!
Every penny.
Sounds weird
But you’ll never be able to tackle it if you don’t know what you’re dealing with!
This is the tab of my own spreadsheet where I do exactly this 👇
Once this is done
You’ll find yourself frightfully aware of how much money you’re throwing out the window each month in payments & interest
And, this will set a fire inside you to get it gone!
Also, seeing the debt summed up in black & white will change your mindset!
You’ll find yourself frightfully aware of how much money you’re throwing out the window each month in payments & interest
And, this will set a fire inside you to get it gone!
Also, seeing the debt summed up in black & white will change your mindset!
From then on...
You’ll be determined to make this total go down
Not up!
And that’s where real change begins to happen
You’ll be determined to make this total go down
Not up!
And that’s where real change begins to happen
Once you've eliminated all of your consumer debts
Your next focus should be on increasing your cash flow further
That means taking the new-found cashflow you've released by paying off your debts
And investing this in income producing assets...
Your next focus should be on increasing your cash flow further
That means taking the new-found cashflow you've released by paying off your debts
And investing this in income producing assets...
This is where some advanced debt leveraging practices can be deployed to help you supercharge your wealth building journey
For example, low-interest debt to secure rental properties
These assets will also appreciate in value over time, further adding to your net worth
For example, low-interest debt to secure rental properties
These assets will also appreciate in value over time, further adding to your net worth
Additional assets can be purchased this way, such as vehicles you buy for the sole purpose of renting out
This is more attainable for many as a rental can require a 20% downpayment which many don't have
However, vehicles will depreciate
So make sure you run your numbers!
This is more attainable for many as a rental can require a 20% downpayment which many don't have
However, vehicles will depreciate
So make sure you run your numbers!
See my pinned thread to learn how to completely master your money
And take control of your finances once and for all
And take control of your finances once and for all
If you enjoyed this thread, please:
1. Follow @FiSavvy for more
2. Retweet the 1st tweet in this thread
I'll show you how to manage and invest your money so your 9-5 becomes optional
1. Follow @FiSavvy for more
2. Retweet the 1st tweet in this thread
I'll show you how to manage and invest your money so your 9-5 becomes optional
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