The dreaded four-letter word: “Debt”
Let’s talk about debt and how many financial gurus talk about it as dis-empowering.
I paid off a 20 K loan in three months. I want to give context and make it very clear that people get themselves into alums with debt because no one teaches you how to use debt constructively.
Falsehoods We Believe About Acceptable Debt
We were either taught that debt is free money or shouldn’t ever go into debt. We’re taught our financial debt is only acceptable in two places: a mortgage for a house or an investment property we use for cash flow.
When you go to college, you can get into six student loan debt figures for a philosophy degree. That doesn’t make any sense either.
Since neither of these makes sense, let’s stop listening to society about debt. Clearly, society doesn’t know what it’s doing, and that’s why so many people have problems. Another false belief is that we think our entire lives revolve around our credit score.
Y’all we made this rule for our society. I’ve worked with credit bureaus, and I have a credit score of 793. Although this is an integral part of your financial life, it’s not your whole economic life.
What I Learned From Paying Off All My Debt
I was the person who would try and pay off all my debt in full every month. However, I didn’t leave with myself with enough cash. And let me tell you when shit hits the fan, money is what’s king, and cash is what matters. My lesson that I learned is that cash flow is more critical than your debt.
We’re taught to pay off debt and to rid yourself of the shame of being in debt. So we use self-inflicted torture, such as eating rice and beans, to save as much money as we can to pay off our debt.
How to Use Debt Wisely
Other people may be guilting and shaming you for your debt, which is counter-productive. Let’s consider processes concerning paying off debt.
First – learn how to use debt wisely. Amanda Francis said that “Credit and debt is a resource meant to collapse time.” When I decided to take on $20,000 in business debt, I needed to collapse time.
Collapsing time meant to finish systems, complete the blocking software to move onto the next level. This was a calculated move to make more money on the other side.
On the other hand, making money does not mean you take on debt to invest in the stock market. I want to be very clear about that. Don’t take out a second mortgage to invest in Bitcoin. Calculated risks are risks in which the resources are available to you. For me, it was business credit.
Cutting Expenses to Remove Debt
I know cutting expenses is a necessary process when you’re paying off debt. We finished all the systems and finished building everything out. By bringing more work in-house, I eliminated $10,000 a month in business expenses.
At this point, our profits went up. After slashing expenses, I focused on making more money. Additionally, I added a package for higher-level sales training for six-figure entrepreneurs, creating multiple five figures in 48 hours.
When You’re In a Big Mess of Debt
For those of you who are in a position where you feel that you’re never going to pay off your debt, I want to give a more empowering message than the finance ninjas handout. I want to provide you with a new perspective. If you’re ready to make some damn money or you’re just not making enough money in your business, then join us in Persuade to Profit.
Resources that are mentioned or add value to this episode:
- Persuade To Profit
- Make Money Your Honey Book
- How to Slay Your Sales (Without Being an Asshole)
- Check out my Live Trainings Online Here!
The post Your Ass-Backward Debt Repayment Plan appeared first on Amanda Abella | Make Money Your Honey.
* This article was originally published here
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