Why Focusing on Your Debt Keeps You Poor

Okay, so here's the hack on how to get out of debt. It doesn't matter if you're in student debt or credit card debt. Here's what to do about it. And I speak from experience. I use this to pay off over $100,000 of debt. And that's back when I was only making about $3,000 a month. And I'm going to share the book that I learned this from, which has literally sold millions of copies. Here's the basic concept in a nutshell. First, what we need to do is admit and recognize that what we focus on is what expands. Meaning that if you spent all of your time and effort focused on how to invest your money and you literally thought about it all day, all the time, well then eventually your money is going to expand via your investment strategy. And at the same time, if all you focused on is how you didn't want to have debt, how you wish you could pay off your debt and how burdensome your debt is, well, what you focus on is what's going to expand and you're going to get more debt. Yeah, another way to put it, there's a famous saying where your focus goes, your energy flows, right? So the more you focus on a particular goal, the more energy goes into it and does more creativity to solve the problem. Now, the other thing she said, I firmly believe that it's not about how much you necessarily make when it comes to paying off your debt. I can't verify whether this claim is true, but she says she was able to pay off $100,000 of debt with just say $3,000 a month of income. I do think it's possible. So if you're in debt right now and you want to get out of debt, never let your current income situation be the barrier from actually pursuing that goal. Now, does it help if you make more and earn more? Absolutely. It can speed things up for sure, but never let your current income stop you from at least taking the step forward. And that is build a budget. Know where your money is coming from and where your money is going out. That is the first piece to just about any financial strategy, whether it's to pay off your debt, to invest in your 401K, IRA, to grow your brokerage account, whatever the case might be. First step is knowing where your money is coming from and where your money is going out. My favorite budgeting tool is called Solvit Air, that's where I would start, but know where your money is coming from and know where money is going out.