I’m here in Paris enjoying so many of the little divinities that Paris has to offer. I’m obsessed with Paris which leads me to believe I lived here in a former life. I usually get to Paris a few times a year and have recently committed to building my business here. I’m excited for my partnership with Lolë as one of their ambassadors for wellness and look forward to hosting some workshops this November at their Paris location.
When I was 29, I committed to myself that I would spend my days creating wealth and not be burdened by debt. It saddens me that so many people spend their entire lives stressed about money and paying off debt. How does one truly wake up inspired, empowered and creative when burdened by debt. Our time here should be spent stepping into our full power and contributing to the world through our big and beautiful gifts.
That being said, I have had times in my life where debt stressed me out. I’m speaking of bad, non-productive debt here (that money that you spent before you even made it). Too often, people forget the very simple concept that keeps them stuck- Don’t spend more than you make. Most people don’t even truly own their paychecks because they’ve already spent the money months before they made it, even years before. Imagine a world where you are in the driver’s seat and debt has no control over you…
Here are 6 simple actions you can take today to become debt free:
1) SHARE YOUR FINANCIAL FREEDOM DATE WITH THE WORLD
Write this statement- All of the money I earn is allocated to creating wealth as of ______(write the day and year). This is your debt free day but I prefer to focus on creating wealth.
2) STOP SPENDING MORE THAN YOU MAKE
This is the fundamental formula for not racking up debt. Stop spending more than you make. You should also be clear if you also need to increase your weekly cash flow. In most cases, it is a combination of both- spend less than you earn and make more money. Find a way to create more cash in your life. It’s so easy to do- be creative.
3) OPEN A WEALTH ACCOUNT
I’m a huge fan of taking simple actions in the direction of your dreams. One of the first things I did was open a no-fee bank account (you can do this in a matter of minutes). Each week, I would deposit extra money I came across. Once I did this, I even started finding bills on the sidewalks (no joke!). Deposit those extra cheques you get in the mail, extra bills in your wallet and watch what happens over time. You can then invest this money to make you even more money! This is your wealth account and it trains your brain to focus on creating abundance on a daily basis.
4) UNDERSTAND LEVERAGE
I have come to understand that the reason why most people have so much debt is that they have never been taught the concept of leverage. Most people get paid only once for every hour they work and if they are not working, they are not getting paid. I have talked about this before but it’s truly important to get familiar with ways to add leverage to your life. Leveraging time and money is critical to getting ahead financially. If you are still living with those limiting beliefs that you have to do everything to get things done or if you work harder you’ll get ahead, it might be time for some new mentors in your life. Interview really successful people in areas of investing, real estate and leveraged businesses to learn about what might be the best fit for you. But you must remember, your first assignment is to get rid of that bad debt and increase weekly cash flow so you can start rocking your bank account. As a 38 year old mom and entrepreneur, if a business model has no leverage and is solely based on my time, I’m unlikely to invest.
5) INVEST IN YOU
If you’re in debt, you’re likely to be thinking ‘but I have no money to spend on books and coaching’ which is exactly why you are where you are (expressed with love!). Remember that those who create wealth invest in themselves more than they do in their business. They are always reading, networking and attending conferences and events that will develop their skills and leadership. If you’re loaded with debt, now is the time to learn to think differently. To do this, you must develop those new abundance mental muscles. Borrow books from successful friends and download free audios from your local library if you have to but enroll yourself in personal leadership university. Stop wasting your precious time in fear, scarcity and debt. When I first understood the Cash Flow Quadrant System by Robert Kiyosaki, I finally understood why I spent my 20’s living paycheck to paycheck. My friend Kate Northrup’s new book Money: A love Story is a must read!
6) MEASURE YOUR PROGRESS
Remember that we have already created your financial freedom date and written it down. Now we must measure our progress on a weekly basis. This is one of the reasons I still like to get bank statements in the mail. I like to review where my money is going and how I can get a little bit better as a money manager every single day. There are many online budgeting tools and net worth trackers that you can explore. The point is that you must start tracking your numbers weekly. Even if you start by tracking weekly expenses and income but make it a habit of getting a little bit better each week. I have a basic net income tracker on my website to get started. If you’d like to create a more detailed and accurate net worth statement, your financial advisor can help you. Everyone should know their net worth and watch it grow.
I confess that am a recovered shop-a-holic! The sentence that changed my life is a very simple one: Do I LOVE IT or do I like it? Whenever I’m shopping, if I’m not absolutely obsessed by it and if it doesn’t make my heart sing, I don’t buy it. I no longer buy things unless the money is already in the bank.