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Getting out of debt is quite simple. There are three steps:
- Spend less.
- Earn more.
- Pay off debt with the difference.
Simple, but not easy. Debt slayers are acutely aware of this. If it were all about the numbers, then everyone would be debt-free in a heartbeat. But the debt-free journey also calls on you to fix your mindset and find strength, courage and creativity you probably didn’t think you had.
Sheri Riley’s awesome book Exponential Living: Stop Spending 100% of Your Time on 10% of Who You Are lays out a solid process for setting yourself up to achieve any monumental task. She calls on you to live in your P.O.W.E.R.
- P – Perspective – Adopt a point of view that empowers you.
- O – Ownership – Own what is important to you.
- W – Wisdom – Identify your one or two next basic steps.
- E – Engagement – Commit to the implementation of those steps.
- R – Reward – Stay consistently engaged with the process in order to experience the positive outcomes.
Let me explain how to use your P.O.W.E.R. to slay debt.
P – Perspective – Adopt a point of view that empowers you.
If you want to make a change in your life or respond effectively to a challenge, the way you look at the situation—your perspective—is critical.
Sheri writes that if you see the situation as an opportunity or chance to elevate your game instead of a crushing blow or bad luck, then you’re halfway to a positive resolution. I believe her.
On a podcast, a journalist who eliminated over $100,000 of debt in two years said he stopped thinking of his debts as burdens. Instead, they became targets. Then he set his sights on getting rid of the first one on his list. And then the next one. And then the next one. I had started using that tactic, too. Each line in my debt snowball has a name, for example, Operation: I’m So Over Undergrad Loans and Operation: Old Navy is Old News (a credit card). Those names make me feel empowered. It’s like I’m a soldier on a mission, no longer the prey.
How do you view your debt and your current circumstances? It’s easy to feel down on yourself. Being $40,00, $50,000 or $100,000 in debt is no fun at all. But if your perspective is “I’ll always have debt,” well, chances are you’ll always have debt.
Forgive yourself for your past money mistakes. Shed limiting beliefs—yours and those you’ve adopted from family, friends and society. And instead of spewing negativity into the universe, speak positively about where you want to be and how you’ll get there. Say “I’m going to be debt-free. Wealth is mine!” That’s the self-fulfilling prophecy you want to manifest.
Click to read more about the P.O.W.E.R. process.