Debt Reduction – The First Step to Wealth Creation

590976_money_man_3Many financial guru’s will tell you to forget about cutting back and reducing debt. They want you to create a prosperity consciousness. You may be told that if you think about your debt and look for ways to reduce your spending you will only further entrench your poverty consciousness.

With respect to these guru’s it is a complete load of rubbish. That’s my opinion anyway, and I will seek to explain why.
If you have had a long term poor relationship with money, i.e. you are broke and getting further in debt you may have several issues to deal with.

1. To this point you have made some bad decisions regarding debt, and just buying a self help programme will add to that debt. Sure many of these programmes potentially offer great benefit, but the transition from debt to wealth thinking requires some important steps.

2. If you have tried systems before which offered great promise, real estate, money markets or the internet and you are still in struggle mode then something important was overlooked in your education.

3. If you have started a business which failed or struggles along and you haven’t clearly
identified what the problem was, you need to take a good long hard look. If you blamed your employees, if you blamed the economy, if you blamed your product or suppliers, then you are pointing the finger in the wrong direction.

Get Real.
Get real about your situation, acknowledge your problem and start a program to reduce debt and start taking your credit seriously. If you really want to purchase a system for wealth creation, then save the money first.
Most people who start an exciting work from home business won’t succeed and many will be financially worse off than before they started. This applies equally to network marketing, shares property etc. The only difference is that some will have a higher start up cost and some will have a larger potential downside.

Take stock.
Now you are reducing your debt, start to take stock of your financial, emotional, mental and educational value. Having a great education dosn’t guarantee you success, and having a poor education doesn’t hold you back.

I know a fellow who did an apprenticeship in printing. This trade died out early in his career. He did a six month computer course and to cut a long story short years latter heads up a multinational IT team.

Do a SWOT analysis.

S Strengths
W Weaknesses
O Opportunities
T Threats

Be brutally honest with yourself. Know yourself, but don’t impose artificial barriers. If you attend a seminar and you are offered a property development educational package. Don’t let your excitement at the great riches on offer cause you to make a rash decision. One which you will latter regret. Don’t ask yourself if you could do it, ask yourself if you will do it.

Once the hype of the moment is over, will you follow through, will you make it happen. If the answer is absolutely yes then perhaps it is good for you, if not then keep your credit card in your pocket!

So the process is a number of steps.

1. Get Real about your situation
2. Start to reduce debt even if it hurts.
3. Take stock.
4. Read positive material and speak with positive people.
5. Create a clear mental image of what you want.
6. Create a game plan.
7. Create a schedule of activities that will move you forward.
8. Take action now

Your path to wealth will be greatly enhanced once you have sorted out your situation, identified your areas of negative resistance, created clarity around your goals, and move forward with great expectation of success.

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