Debt Free..Is it possible?

I had mentioned that my first goal is financial freedom and to be debt free. Is this possible? That is a tough question. I feel it is and my wife and I have been shrinking our debt for the past few years. So I know for a fact that it can be brought under control and eventually eliminated. There is a lot of work involved--more than work but thought processes that need to be changed in order to even start the process of being debt free which is the first phase of getting your financial freedom.

There are a few things to understand about debt before you can start figuring out how to shrink and eliminate it.

1. You Did not get into debt over night- That is right, the situation you are in NOW took quite some time to get into. Do not set the expectation that you can fix it quickly. It takes discipline and habit change in order to start getting rid of your debt
2. Want vs. Need-This is a big one, when you go to pull out your credit/debit card or hand over some of your hard earned cash- think is what you are buying something you need or something you want? If it is a WANT out it back, do not spend the money. If it is a need make sure you really need it before the purchase.
3. Where does all the money go? You need a solid understanding of where every penny that comes into your household goes. Once you understand it--you can examine the leakage and start plugging holes in your financial world.
4. Come up with a plan- Once you understand where it all goes, you can start to CONTROL your spending and find the extra $$ to start paying down your debt.
5. And Finally--move to a cash only system. If you do not have the cash-do not buy until you do.

Wow, that seems like a lot to take in. But if you look at it in small steps, you can start the process, change your habits and move forward on understanding your financial world, controlling your spending habits, and eventually get into a debt free situation.

In the next post we will examine Want VS Need and some ways to control your spending....