You read it clearly. I abandoned my debt free journey and now I have more debt to prove it! Why? I got comfortable. I lost my discipline. The reasons and/or excuses can go on forever. My current reality is that there is a cloud of debt that lingers over me.
Sighs. I will not have a pity party any longer. I have decided to spring into action. Follow me as I restart my journey to wealth. I promise full transparency, authenticity and to share knowledge as I progress along. What follows are the next steps I plan to take.
3 Steps to Reboot a Financial Journey
Accountability & Forgiveness
Debt does not define one's worth, and mistakes are opportunities for learning and growth. By forgiving oneself, individuals can release the burden of guilt and shame, enabling them to move forward with resilience and determination. This process allows for a healthier relationship with money and ultimately facilitates the journey towards financial freedom.
Calculate Debt
Gather all relevant financial information, including credit card statements, loan documents, and any other outstanding balances. List each debt, along with the outstanding balance and the interest rate. Next, sum up all the outstanding balances to find the total debt.
Create a Budget
Determine your total monthly income, including wages, bonuses, and any other sources of revenue. Next, list all monthly expenses, such as rent or mortgage payments, utilities, groceries, transportation, debt repayments, and discretionary spending. Differentiate between fixed expenses (those that remain constant) and variable expenses (which fluctuate month to month). Once you have a clear understanding of your income and expenses, allocate specific amounts to each category, ensuring that your total expenses do not exceed your total income.
Thanks for reading, Please comment "yep" if you have ever had a set back in your financial journey.
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