It’s very easy to add up everything you owe, figure out how long it will take you to pay it off, and get extremely discouraged.
That’s why it’s important to focus on the things you’re doing to get out of debt and not on the debt itself.
The Snowball Effect
As you work your plan to cut expenses, manage your debt, and increase your income, something amazing will happen. You’ll gain momentum. And speed. You’ll start paying your debt off faster and faster until suddenly, you find yourself out of debt and saving massive amounts of cash.
You can thank the universe for this. The universe loves momentum; just look at these catchphrases:
- It takes money to make money
- The rich grow richer
- Success breeds more success
That’s the universe at work. All these ideas say the same thing; if you start down a path, that’s the path you’re on. It’s like practice makes perfect. The more you do something, the better you get at it. And with a 3 point plan (expenses, debt, income), you’ll get very good, very quickly.
Once the snowball effect kicks in, your thinking will start to change. You’ll start to think rich. And once that happens, there’s no stopping you.
In a horror movie, the biggest tension doesn’t come after the monster jumps out and attacks the heroine. It comes before we know what to expect. Or when to expect it. The biggest tension sits in the quiet dark corridor before we ever see the monster.
Debt happens the same way. It’s the monsters we can’t see yet that cause us the most tension.
For example, if you’re worried your beat-up old car will break down and leave you stranded somewhere; that tension is worse than the tension of going into debt to buy a new one that’s reliable. It’s easier to take on the debt because that’s a monster you can see.
But if you can buy a brand new car tomorrow, debt free, that tension doesn’t exist. And the chances are excellent that if you have the money, you have better things to do with it, like investing it.
Suddenly you don’t need a new car.
That’s the essence of thinking rich. As you make progress paying off your debts, not making those payments will cause you more tension than the thought of your beat-up old car breaking down. And when you start saving and investing your money, not doing that will cause you more tension than the things that might happen.
You know you can buy a new car when you need to. Just knowing that, slays the monster. Knowing is everything.
Now you know.