The Key to Success
There are several strategies to pay down and to pay off debt, to manage your money, and to save your money. There is “Debt Stacking”, “Snowballing”, “Envelope Method”, “Paying Yourself First”, and many more. All of these methods have successful accounts of people becoming debt free and/or financially free. However, I would dare to say that the success rate is different for different people. How could that be? Why do some people succeed while others fail at doing the same thing? Those who succeed have one thing in common. Discipline!
Here is a hypothetical illustration of Debt Stacking. It shows a 35 year old client who has $2,720 in monthly debt. The illustration shows how the client can use the money he is already paying to pay off his debt in 9 years instead of 23 years. Then invest the money he was using to pay his debt at 9% interest compounded monthly. At age 67 he would have $2.4 million! Wow! What an exciting prospect. But can this actually happen? Yes, I believe it can but you have to have discipline. After “Retail Card 1” is paid off, you have to have discipline to add that $220 monthly payment to the $353 monthly payment for “Credit Card 2” and so on instead of getting more debt.
Many people are excited about the prospect of being debt free and/or financially free and attempt strategies they have heard about, read about, viewed, etc. And many fail to become debt free and/or financially free. Is it because the strategies are bogus? Were you sold a bill of goods? In most cases, just like “Debt Stacking”, it takes discipline. You do not get something for nothing. Information is great but without execution it’s just information. However, when you add execution and discipline there is a higher likelihood that you will be successful. This also applies to 0% APR offers that are mentioned here. We believe we can outsmart a bank or a cell phone company or a cable company and get something for nothing. Actually, without discipline you can end up worse off than when you began.
Discipline is the cost you have to pay to be debt free and/or financial free. Sure, you may have paid for a book, a program, or even a coach to help you to become free. However, that cost will be a waste of money if you are not determined to reach your goal(s) and practice discipline. I believe that patience, consistency, and commitment will help you to reach your goals. If the goal seems too big, then take it a little bit at a time. Others have done it and you can too. It just may take more time than you expect and more effort and discipline than you imagined. All the best!
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