Before starting your debt-free journey these are a few things you should know. What to consider, expect, and be prepared for before starting a debt pay-off plan.
It takes some Research
You’re going to be doing a lot of research.
What I mean by research is finding out how much debt you have, how to invest, how to budget, what your credit score is.
And a million other things.
This includes making phone calls, finding out how to budget, how to save money, when your bills are due, who you owe money to, and how much.
Be prepared to listen to podcasts, read blog posts, watch videos, and read a lot.
Don’t let this intimidate you. It does get easier!
Find someone to help you with accountability
You need to tell someone.
Tell someone that you want to be better with money.
This can be a partner, friend, family member, coworker.
Someone that you know you can fall back on for support and motivation.
Now that doesn’t mean this person is on this journey with you. Sometimes they are but they don’t have to be.
It is important to have an accountability partner becuase this is a really difficult journey to do alone.
Don’t forget we are all here too. #debtfreecommunity
Figure out your why
Before you do anything you should figure out your why.
This is the first step in starting your debt payoff journey.
Why do you want to pay off debt?
Think about some long term and short term goals.
Write down your sick and tired moment. If your unsure of what that is I wrote about ours here.
Because this journey can be difficult it is important that you do this.
This is going to be the reason why you don’t quit.
So before you even get started make sure you do this!
People won’t understand your new lifestyle
Once you begin your journey you may want to tell everyone but realize there will be some people that won’t understand.
When Michael and I first started paying off debt we were super excited.
But most people we told didn’t care.
Remember to most people money is a sensitive topic.
Some thought it was silly, unrealistic, or responded with oh that’s cool…and continued to live a life parallel to the Jones’s.
So just be aware that you may tell some people and they will ignore your advice.
But when you are debt free, be prepared for people to ask how you did it.
Your debt payoff journey will be different than others
There will be so many articles and pieces of information out there on how to pay off debt.
Do it in the way that works best for you.
If you use credit cards and others don’t that’s ok.
The debt snowball and debt avalanche are two proven methods to help pay off debt.
Don’t sweat if your grocery budget is double other people’s.
Use all the information to create your own successful journey.
Once you are debt free that is all that will matter.
Will you sacrifice some things to become successful
Before you start diving deep into how to pay off debt realize there will be some sacrifice. No one got where they wanted to be without a little sacrifice.
There will be some things you will have to give up.
You won’t have to give up everything but if you want to be successful the most money possible needs to go towards your goals.
It will be Hard
I would be completely lying to you if I didn’t say that this journey is difficult.
Our brains are meant to protect us and avoding hard things is something it’s really good at.
Because living debt-free isn’t the easy way it will be difficult.
I would never want to deter anyone from starting a financial journey becuase it’s hard but at some points, it will be.
The good news is you are better than difficult becuase you will be successful.
No matter how hard the journey is.
Expect some sort of failure
Not meaning failure at becoming debt-free, but failing to always be perfect.
Your first budget will probably suck.
You will forget things.
Murphy will find you.
Something will go wrong because it always does.
There will be many things thrown at you that will make you feel like your failing.
You may even want to give up.
Know that it is part of the process.
Before you begin your journey be ok with not being perfect.
Commit to being debt-free…forever
This is a lifetime commitment.
Not to mention each step can take months even years to complete.
You may be committed to getting out of debt but then there are savings and retirement and wealth-building opportunities and the list goes on.
Paying off debt is just the beginning.
Before starting your debt-free journey think about all the possibilities it will create if you stick with it.
Commit to your forever financial success before you even start the process.
People will be “more” successful than you
It will be hard to not compare other people’s journeys to yours.
There will always be a person paying off debt faster than you, making more money than you, buying more things than you.
This is something as a culture we struggle with immensely.
Part of living a debt-free life is not comparing what we have to what others have. But I know first hand that it is easier said than done.
I just want you to be aware that this may happen to you.
If this is something you struggle with I highly recommend checking out some of these:
The Subtle Art of Not Giving a F*ck
You don’t have to take away everything you enjoy
This topic could be given its own post.
Being on this journey does not mean you take away everything important to you.
I think this is a large misconception.
Taking part in a financial journey means figuring out what is worth your time and money. Whatever that may be.
Trying to better your finances doesn’t mean just taking everything out of your life.
You will find what is worth your money and what isn’t.
This is your journey you give up what you want.
Celebrate your wins you deserve it
This will be important to your debt-free journey.
You will put so much time effort and sacrifice into this journey so celebrate.
If you hit a major milestone do something to celebrate. This will keep you motivated and give you something to look forward to.
Sometimes I don’t think this is talked about enough. Your version of celebrating doesn’t have to be expensive but it can be critical to your journey.
Pay off a loan in full? Celebrate!
Interested in reading more?
Baby step 3 before baby step 2?
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Sam,
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