If you’ve read the posts from the last week or so, you’ve hopefully decided that you really want to get out of debt?  Did you?  I hope so.  Isn’t it time?  If not now, when??  You’re also willing to do the work and make a few sacrifices, right?  I wouldn’t be recommending this and focusing on it (getting out of debt) so much if I didn’t think it would seriously turn your life around.  But it will.  Getting out of debt will seriously improve many aspects of your life, like reducing your stress.

The rest of the posts for this month are going to focus on giving you the “real stuff ” on how to get out of debt; you know, the steps and processes that will get the ball rolling.  We want to gain momentum.

For today, I am going to give you 3 simple concepts that I want you to think about for the next 24 hours.  As simple as these 3 concepts are, most people completely miss them and think it just can’t be that simple.  Well, it can.

Turning your life around financially and getting out of debt  comes down to:

1) Stop using credit cards and other forms of credit right now.

2) Cut Your Expenses

3) Earn More Income

And, you know what?  You really need to do all 3.  Maybe not today, but tomorrow isn’t too soon.   I know that you can at least do #1 for now, stop using credit cards, right?  #1 is  referred to as “The Hole Principle” (this is what Larry Winget affectionately calls it)  The Hole Principle – “When you find yourself in a hole, stop digging.”  Funny and somewhat simple, but very true.  Have you ever thought about this in other aspects of your life?

I want you to simply stop the credit card interest machine to stop the bleeding.  And, that happens when you stop using the credit cards.

So, here’s what you can do for today to help you see what you need to stop spending money on.  Write down your absolute necessities: rent/mortgage, utilities, food, and other obligations.

Then, pick up some sort of notebook or journal.   I want you to write down what you spend your money on every day and how much each thing costs.  Dave Ramsey refers to this as giving every dollar a name.  Everything that doesn’t fall into one of the necessities above, is something we will take a look at later.  Don’t omit anything.  When you start tracking stuff, you begin to see ways you can cut your budget.  I remember when I went through this, things leaped off the page at me.  You’d have thought I was buying stock in Starbucks (Barney’s at the time)  Yes, I am a coffee NUT!

The idea isn’t to add another task to your list.  But doing this for one month will allow you to see how you can change your life one step at a time.  So, stop what you’re doing. Go and get a journal and start giving every dollar a name for the next 30 days.  Deal?

Character can not be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, vision cleared, ambition inspired and success achieved. Hellen Keller

Related posts:

1. Pay OFF Credit Card Debt, Getting Into Attack Mode