Vacations, activities and bored kids can mean the wallet gets a bashing.
And your regular bills won’t miraculously stop arriving in the mail.
The problem is most of debt is not productive, and if not addressed can spiral out of control.
It can also impede any plans to create long-term wealth for your financial future.
Most of us want to be able to provide a comfortable future for our families and ourselves, but how can you get ahead and stay on track to achieve these goals?
Here’s how you can deal with debt and get yourself on the road to recovery.
1. Recognise the debt
The first step is to recognise bad debt – the type of debt we enter into to buy things that depreciate and attract no tax deduction.
This bad debt, typically credit card debt, is what many routinely enter into without a second thought, but it is the type of debt you should avoid.
Of course we must spend in order to clothe and feed our families, but perhaps you may need to curb spending on unnecessary items.
There is often a debt level people will continue to reach because they are comfortable with it – but that’s just a bad habit.
This kind of debt stops people from getting ahead and finding financial freedom.
2. Don’t wait. Take action now
Now is the perfect time to take action, seize bad debt habits and get yourself on the path to financial freedom.
If you put a few simple strategies in place now, you’ll be able to break those bad habits and start creating good ones.
Your first port of call is to pay off your bad debts.
You’ll also need to set a budget and put any spare cash towards reducing bad debt.
You can’t eliminate debt without budgeting. It will require you to figure out your spending patterns and identify unnecessary expenses and eliminating them.
Then put your debt arresting and budgeting efforts into a tailored property investment strategy that will propel you towards your goals and eventually financial freedom.
3. Understand that not all debt is bad
You’re probably thinking “What!? That’s completely contrary to everything you’ve just said!” but in fact the statement is true.
If you read my last blog post, you’ll see that I am an advocate of good debt.
If you ignore good debt, you will miss out on an opportunity to leverage good debt to fast track your wealth creation plan.
But first you need to get your bad debt under control.
4. Get professional advice
If bad debt is something you struggle with, it’s wise to see a professional about your financial and property investment goals.
The right person will help you understand your goals and create a plan to help you reach them. A plan will also help you avoid making mistakes along the way.
The right person can also keep you on track and accountable to your goals.
A good adviser can help you identify your goals, set an overall financial plan and help avoid making mistakes. They can also make sure you things get done, when they need to be done.
If you are free of your bad debt, you’ll be able to start building long-term wealth. And property is a great way to do this.
If you want to achieve financial freedom and learn how to leverage your true potential into wealth creation, call 1800 600 890 to book a complimentary consultation with me personally.
Paul Wilson is an Independent Property Investing Expert and the founder of We Find Houses, Educating Property Investors & We Find Finance. Paul has been educating and coaching investors since 2001. Paul provides valuable, independent guidance and support by teaching strategies on how you can invest successfully while protecting yourself from commission hungry sales agents and property spruikers. Protect yourself with knowledge, contact Paul today for a complimentary consultation on 1800 600 890 or email email@example.com
Read more expert advice articles by PaulDisclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.
- This article originally appeared on www.wefindhouses.com.au.