Follow Me Out Of Debt | Get Out Of Debt And Get Into Prosperity!

It's almost strange when you see someone actually paying with cash. Not too long ago, the opposite was true. Everyone paid with cash, and when someone didn't pay with cash and pulled out a credit card - that was considered to be strange. There is still power tied in with using cash. This is especially true when we're in the process of paying off debt. The power is obvious; we are changing behaviors that will prove to be future actions that are even more powerful when we're finally debt-free.

There are two important things that we need to do before we start on this journey to get out of debt. The first thing is to bring all of our past due bills current and paid. The thing about some bills, especially medical bills, is that it's easy to simply set them aside and forget about them. They aren't screaming at us - so we don't feel that we need to tend to them right away. The truth of the matter is, it is money that we owe, and we do need to pay these first so that we're current. Of course, there is an equally important second step - the emergency fund.

I came across an interesting way to budget. It allows me to see not only what I'm spending, but it also allows me to allocate the resources needed for each major category. I explain this procedure in greater detail on this episode, so take a listen. I hope that this helps you out with your budgeting as well.

Today I'm talking about the emergency fund, or more specifically, the starter emergency fund. This is the amount that you should have set aside to serve as a cushion for any emergencies that come up that will allow you to pay cash rather than going into further debt when there is an emergency situation that arises.

When we're used to using credit cards or other types of borrowing (car loans, personal loans, etc.), it can be a real psychological challenge to stop the behavior. The truth of the matter is that if we don't buckle down and change our mindset, we are doomed to repeating the same bad habits over and over again.

Debt is a roadblock when it comes to success with finances. Many of us know that, but yet we continue to stay in debt even though we do have other options. Those other options do require a lot of hard work, so the natural course of action may be to stay in place. However, staying in place will never lead to prosperity.