There is an interesting article written by Financial Mentor. He writes that our real problems are within us. With a few exceptions (ie: a medical emergency), our financial issues are due to our habits or attitudes.
Out of the eight characteristics that he listed, I chose three that defifinitely apply to me.
Misplaced Priorities:- choosing consumption and current lifestyle over investments and freedom
No Plan:- there is no budget, no plan for growing assets, no tracking of spending, no discipline
So... How do I get out of debt?
"Live on less than what you make"
My Debt will not be paid off if I spend more than I make. The Financial Mentor states that in truth we need far less than we think we do.
"Track your spending"
I will write down where my money is being spent to raise awareness. Is it spent on unplanned purchases or is it on fees or interest due to debt?
"Tell the ones closest to you about your debt free goal"
Actually this really works. I have told two of my closest friends and my mother. They rally around me, ask for feedback, and pump me up when they hear of my progress. "Accountability is a powerful force for shaping human behaviour."
"Have a good attitude"
I am not thinking of the sacrifices being made. While I am in debt currently, I treat some parts of my journey as a success. For example, we have never missed a mortgage payment and I got my interest rate decreased on my credit card. I can't help but to feel positive of the financial security headed our way.
So which of the common characteristics are getting in the way of financial goals?