We all imagine ourselves on an island somewhere in the Caribbean sipping on coconut milk and enjoying the warm rays of the sun. We imagine ourselves free from worries and just enjoying the retirement we worked so hard to finally have. Though this is what we imagine, it is a whole other story actually reaching those goals! There are definitely steps we have to take throughout our working lives to reach that image that most people will not reach. Hopefully you can take a look at your own financial habits as we go over some ways to live a more worry-free life and create a relaxing future!
If we want a retirement, the first step is actually becoming debt-free! There is no increase if student loans, car payments, credit card payments and many other financial leeches are sucking on our bank account! I had the amazing opportunity to take a money management class for my major and I learned some really important tips about how to get out of debt and have a plentiful retirement!
As we look at each of these financial leeches, we can begin to work on each of them a little at a time. Say we are in debt $17,000 for the rest of our student loan and $11,000 of car payments. Each month we can set aside a set amount like $75 for student loans and $230 for the car! Once you get out of debt with the car, that money can roll over into paying off the student loans!
My teacher shared a story about a couple
using this method to get out of nearly $150,000
of student loan debt! At the bottom of this page
is a template for doing this with your debts.
Once we are out of debt, then we can turn our attention and focus to investing that extra money that we now don't have to put towards our debt each month! We can set up a retirement fund (preferably a Roth-IRA) with our company which will compound over time! As we are saving, the worries will begin to disappear and will be replaced with a peace that God and His Prophets have told us we would feel. Rather than our finances controlling us, we have control of our finances and the chains of debt no longer drag behind us!
In addition to these steps, we can develop an ability to discern between wants and needs! I know that there are definetly a few things I want, and could take out a loan for, but certainly don't need! I have been able to get to my last semester of my bachelors degree completely debt-free with no student loans! When I was saving for a car, I borrowed some money to pay for it and payed off my car in a few months! I have avoided putting big purchases on my credit cards because I know that would bite me in the end. There is nothing more liberating than the feeling of making a consistent increase and you can get there too!!! With discipline and a vision of that beautiful Carribean beach, you can get out of debt and find joy in being financially free!
Words of the Prophets
Spencer W Kimball- “All my life from childhood I have heard the Brethren saying, ‘get out of debt and stay out of debt.’”
Ezra Taft Benson- “Our inspired leaders have always urged us to get out of debt, live within our means, and pay as we go”
Gordon B Hinkley- “To satisfy our desires, we go into debt, dissipate our resources in the payment of high interest, and become as slaves working to pay it off..."
Thomas S Monson- “We urge all Latter-day Saints to be prudent in their planning, to be conservative in their living, and to avoid excessive or unnecessary debt”
Challenge: Select one or more of your debts to start paying off monthly! Create a plan this week for how you will get out of debt as soon as possible!
Debt elimination calendar-
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