The average person is extremely afraid of debt. They see all debt as being bad and as something that will hold you back financially. But there both good and bad kinds of debt and the rich get richer because they use debt to their advantage. Using other people's money is one of the quickest ways you can get rich, and no it does not have to be risky. I want to help show you how to stop being afraid of debt and start getting rich.
Most people have bad debt, that is where you have a loan for buying things that depreciate in value. People use things such as credit cards and personal loans to buy things such as cars, clothes and food that all depreciate in value over time. When the repayments become too much people find themselves in financial turmoil. Unable to pay their loans and unable to live the life of their dreams. No wonder they are so afraid of debt.
The technique I am about to show you is a technique that I have personally used to help eliminate my fear of debt. I was at the point where I was having migraines because I was worried and stressing about my debt and my financial situation. This one technique helped turn that around for me.
Think About Your Debt In Terms Of Cashflow, Not The Overall Figure
When you think about your debt, do not think about how much you owe. Because thinking about how much you owe is extremely daunting and is what causes you the most amount of stress. Instead of thinking about that, think about your cashflow. How much does your debt cost you each week / month.
You might be paying $ 100 per week on your debt, and out of that you are pay $ 50 in interest. Now this is a figure you can wrap your head around. Hopefully just by thinking in terms of cashflow your fear of debt can be minimized. I now know that all I have to come up with each week is $ 50 (the amount of the interest) and I will get by. Better yet, I now know that if I can create a passive income (income I do not have to work for) of $ 50 per week then I can not forget about my debt completely.
When you think about your debt in terms of cashflow paying off your debt becomes much easier. Because instead of trying to find a large sum of money to pay off your debt, all you have to do is generate a passive income that will offset your debt. If your debt is costing you $ 50 a week in interest, you can spend your energy looking for and purchasing an asset that is going to generate you passive income. Your cashflow from your debt will become 0 and you will own an asset that is appreciating in value.
When you think about your debt in terms of cashflow you can start thinking creatively about how to offset your debt. You are not forced into thinking "How can I work harder so I can pay off my debt quicker". This ability to think creatively and to become richer is the process of paying off your debt will reduce your stress and worry. It certainly did for me.
So why not have a try? Instead of being afraid of your debt why do not you simply change the way you think about your debt. It will make your life that much easier.