debt

debt /det/ noun – something, typically money, that is owed or due.
Fuck being in debt.
Five steps I used to get out of debt
  1. Inventory – what do you really need to spend? Chances are there is quite a bit of trimming you can do with your spending.
  2. Budget – Once you get a spending idea, start setting a planned budget each month. Any additional leftover funds (bonuses, gifts) go toward paying off your highest interest rate loan.
  3. Sell – Part ways with the shit you don’t need. Don’t use it, sell it. Don’t need it, sell it.
  4. Extra payments – like I said above, any profits you make or any additional funds can go toward paying off your high-interest loans (think credit cards, cash advances, etc. Make sure these payments are on principal only and make sure there is no early pay off fees associated with your debt. Once that debt is paid, move on to the next highest interest debt. Rinse and repeat until you have everything paid off or sold.
  5. Save/Invest – now comes the fun part. starting saving and investing.
I am happy to say for nearly the past 10 years I have been debt free, other than my house which isn’t considered “bad” debt since there is (hopefully) a positive return on investment if I were to sell.
At the ripe old age of 22 years, I decided I was tired of being in debt. At that point I was single, and somewhere in the vicinity of $30,000+ in debt.
I know I don’t normally talk about money on this site, but I strongly feel that debt can have a negative impact on your health. Getting your debt, and spending under control is one step closer to mastering your self-control and discipline.
A man in debt is anything but a free man.
When I decided to get out of debt, the first thing I did was take account of what I actually need to spend to live, and what I was wasting on material junk.
After having an idea of a “budget”, I took inventory of what I actually needed to keep, and decided to part ways with all the extra stuff in my life.
This wasn’t easy by any means. I remember when I sold my motorcycle, a beautifully customized Yamaha R6, I told the buyer I couldn’t do it once he showed up with cash in hand.
Luckily for him, and for my debt, I held up my word and signed the title over. That was hard. But relieving myself of the debt felt fucking good.
Over the following few years I sold off several more of my “toys”, any profits I would make from the sale went toward payments on higher interest items like credit card debt.
Eventually, I was able to finally fly the debt-free flag, and take one step closer to charting my own financial future.

Keep in mind, not all debt is bad debt. Things like business debts, or even home mortgages are sometimes a necessary evil when it comes to finances.

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