have you been thinking about paying off your debt but you do not know where to start or feeling overwhelmed with all the debt that you have then this video is for you [Music] hi i’m sylvie welcome to be on financial reset if this is your first time stopping by our channel thank you please be sure to hit the subscribe button and the notification bell so you will receive notification when we release videos every week if you have already subscribed to our channel thank you we appreciate the support in this video i will be sharing with you a five-step plan that beginners can use to eliminate their debt now having that can feel overwhelming especially when you do not know where to start that steals away your income because you do not have the money to do the things you want like travel hello or shop or save for future expenses or goals or invest for the lifestyle that you want now when you pay off your debt you’re able to do all of those things and much more in this video like i said i will be giving you a five-step plan that you can use to simplify your debt elimination plan the very first thing i would want you to do is to figure out why you want to eliminate your debt now a lot of people have said eliminating your debt is good but that is not enough reason for you to want to eliminate your debt why do you want to eliminate your debt you need to figure it out for yourself the reason why you need to eliminate your debt has to be personal to you do you want to eliminate your debt because you want to give your kids a better life do you want to eliminate your debt because you want to stop fighting with your spouse about money do you want to eliminate your debt because you want more money to invest so that you can retire early do you want to eliminate your debt because you want to stop working so you can stop dealing with that annoying bus and co-workers whatever the reason for wanting to eliminate your debt i want you to write it down and find a visual representation of that motivating factor then put that reason somewhere that you can see it every single day it could be on the treadmill if that’s where you spend a lot of time or on by your bed when you wake up in the morning the reason for that is because when you wake up in the morning and you see that visual representation it’s going to give you motivation to go out every single day and fulfill your financial goal or to go out every single day and take an action step that’s going to move you towards eliminating your debt second i want you to develop a plan how do you want to eliminate this debt now we’ve already established that you want to eliminate your debt good and fine but how are you going to eliminate your debt there are various ways that you can eliminate your debt there is the debt snowball that allows you to eliminate your debt from the debt with the lowest amount to the debt with the highest amount there’s a debt avalanche where you can pay off your debt starting with the debt with the highest interest to the dead with the smallest interest for us we knew we wanted to eliminate a debt we tried for many years doing that by various means but they did not work for us we do recommend the debt snowball because again that is something that worked for us we tried the dead avalanche and that did not work for us so we do recommended that snowball whatever the method you decide to use you need to write it down write down your debt and start paying off the debt now don’t make it too hard for yourself by trying to use both methods okay so when you choose a plan stick with it third i want you to track your progress how are you going to know that you actually paid off your debt are you going to look at your credit card statement are you going to check your net worth so think about it this way when people lose weight they get on the scale they measure their weight and they are able to know that they have lost weight so if you pay off your debt and you do not measure how whether or not you’re paying off your debt you will not be motivated to keep paying off this debt so make sure that you identify how you will be tracking paying of this debt will you be checking your statement every month to make sure that you’re paying off this debt will you’ll be checking your net worth every month to make sure that you’re paying up this debt so you need to have a system in place for how you will be tracking your progress next you need to stay committed now initially it’s going to be so easy because everybody who’s that something is usually committed right but as time goes on that commitment fizzles right so how are you going to stay committed to this goal you need to have a plan are you going to set little wins along the way so when you pay off one debt are you going to have something that is going to you’re going to treat yourself to something like you know a spa at the end of that day when you pay up the second debt are you going to go on a vacation so people do that just to keep themselves motivated another thing that you can do is to find an accountability partner an accountability partner is an awesome tool to use because there are days where no matter what you do i bet you you do you will not feel like working on your financial goal but an accountability panda is going to give you that little notch to get you off the bed and on your feet towards working on your financial goal so find somebody that you trust who believes in your vision who is going to help you to work towards your financial goal and make them your accountability partner and lastly celebrate your financial wins no matter how small the winds are if you were able to walk past the bag of chips at the grocery store you need to give yourself a pat on the back if you were able to tell your kids no when they asked for that toy you need to pat yourself on the back child if you were able to have a discussion with your husband about money and not fight about it that is a win you need to celebrate that whatever that win is it is leading you to what’s the bigger goal celebrate it if we ignore the smaller wins we will not feel motivated to work towards the big win so we need to celebrate our wins as we journey towards that elimination so that we stay motivated to achieve a financial goal so that is what i have for you for the five-step program for any beginner who is working towards eliminating their debt if you have any suggestions or questions let me know in the comments section so we can continue to build wealth together and please don’t forget to share and subscribe thank you for watching
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