A Step by Step Process to Reach a Debt Free Future. Financial Stress is a Major Cause of Unhappiness and We Want to Help You Decide to Live a More Stable Financial Future!
This is a short mini-version of the episode on video. You can subscribe to our YouTube channel to get these mini-episodes as well as other videos from us. The full episode is available on video for our patrons by clicking here.
Related Podcast Episodes
28 - How to Achieve Your Financial Dreams (Budgeting Episode)
Steps Mentioned in Episode
1) Make the decision to get out of debt
2) Stop increasing your level of debt immediately
3) Recognize that your income must be greater than your expenses (evaluate this with a budget)
4) Reduce expenses to the maximum reasonable extent
5) Increase income, probably by creating side income
6) Apply any surplus money to moving your financial plan forward
7) Build up an emergency fund
8) Apply all debt reduction money to the smallest debt (ie. least amount owed debt obligation)
9) As you pay off your debts, apply all the money you were paying before to the next smallest debt
10) Once you get to debt freedom, build short term savings so you can buy stuff with cash not credit
11) Longterm investments only make sense once steps 1 - 10 are completed
It's the same process no matter how much money you owe.