If you want to stop being broke, the first step is to get out of debt- and stay out of it.
Realize that you have an income problem, not a debt problem. Your income is not enough for your needs and wants
Here’s the 4-step process to eliminate debt forever:
- Own your debt and forget about it. Accept responsibility for it. If you don’t, you’ll always feel powerless to beat it. If you own the problem, you own the ability to find a solution.
- Master making lots of money. Learn to earn. Get around people making lots of money and do what they did. Focus on the goal of massive income, not on the hole of debt.
- Master having money. Stop believing that it’s the root of all evil. Create an abundance mentality. Reprogram your mind to think that it’s good to have lots of money.
- Master multiplying money. Once you master creating wealth, you no longer have to go into debt to get what I want.
When you focus on having money, you’ll have money. So, how do you do that?
Update your financial statement monthly to find out how much you’re worth (Get your FREE Financial Statement Template HERE). Focus on your net worth- these are your assets minus liabilities. As assets grow, liabilities go.
You got this!
What steps have you taken to create wealth? Share them in the comments section below.
What Earl Nightingale called the greatest secret is you become what you think about all the time. You think about debt all the time. "I've got to get out of debt. I've got to get out of debt." You're going to get more debt.
Today I want to talk about how to get out of debt and how to stay out of debt. How to get out of debt forever because most Americans, most real estate agents are broke and in debt.
And if you ever want to stop being broke, the first thing you got to do is get out of debt. And it's like if you want to climb the mountain of abundance and prosperity, the first thing you got to do is get out of the hole that you have dug for yourself. So in this video, I'm going to lay out exactly how to get out of debt. Now, this is not a technical treatise on debt elimination. This is more of an approach of how people that go from being broke and in debt to having massive wealth. It's how they do it.
So let me first say, here's how not to get out of debt. Set a goal to get out of debt. That's how not to do it. It's kind of like losing weight. If you want to get healthy, and you're overweight, don't focus on losing weight because you'll lose it and you're going to gain it back. When you focus on getting out of debt, you're still focused on debt. One of the laws of achievement is you get what you focus on, what you focus on expands. What Earl Nightingale call the greatest secret is you become what you think about all the time. You think about debt all the time. "I've got to get out of debt. I've got to get out of debt." You're going to get more debt because it's still the focus.
The average American, according to the US Federal Reserve, as of September, 2019 the average American has over $60,000 of debt. Not the average household, the average individual Americans. So if you're a couple, the average couple has over $120,000 of debt. If you got two kids, then it's over nearly a quarter of a million dollars of debt per American household with a family of four.
My friend, if you are in debt, and I'm betting you are, if you're watching this, I'm betting you're in debt, your problem is not a debt problem. Your problem is an income problem. I'm going to say it again. The problem is not a debt problem. It is an income problem and it is a way of thinking problem because the average American has over $60,000 in debt individually. The average income is only 33,000. So that means the average American has already two times as much debt as they have annual income.
So the real problem is that your income is not sufficient to meet your needs and/or your wants. If you had enough income, you would be able to get out of debt and stay out of debt forever. So I want to share with you four step process for eliminating debt forever, and it is not just by getting out of debt. So here's how you do it.
Number one is own your debt. Own it, which means accept responsibility for it. You've got to accept responsibility. You've got to look at and go like, "Whoa, my credit cards are maxed out. I'm got all this debt. I'm just like, ah. What do I do? I'm drowning in debt. It's like trying to just keep your head above water. I got all this debt. What do I do about it? Well, I got to own. It's my fault. I am in this hole because I dug it, I dug it myself."
Now you can make all kinds of stories and excuses, "Well, I had health issues and unexpected medical bills. Or I lost my job and all that kind of stuff." That happens. That happens, and it may not have been your fault, but you need to accept it as if it was your fault. And here's the reason, because if you don't accept it as your own responsibility as your own fault, you'll always feel powerless to beat it, to do anything about. Because you're going like, "It's not my fault." Then you're going to go like, "Then I didn't get myself in this. It was somebody else's fault, then somebody else should get me out of it. It was bad luck that got me here. So I need good luck to get me out of it."
But if you go like, "Okay, I'm here because of my own choices, I am here because I made some choices, and I put myself in this situation and then this happened, this happened, and all of a sudden I'm in this hole. I got myself here. I will get myself out." And as long as you own the problem, you own the ability to create the solution. Don't be helpless financially. People that stay broke, feel financially helpless, and as long as you feel helpless, you're not going to do the things to get out of it because you don't believe that it's in your power.
And I'm going to tell you, it is in your power right now. And especially if you live here in America because there is so much opportunity, there is so much opportunity to get wealthy, and the people that are wealthy and make it a lot of money in the world today, it's not because they're smarter. It's not because they had it handed to them, or they had rich parents.
It's because they do different things and broke people do. They think different thoughts. They take different actions. They make a different set of decisions, and that's why they make money. Now don't check out on me here and go like, "That's bullshit." It's the truth and as long as you deny it and you go like, "Well no, it's not that way, whatever." You create a story, then what you're doing is you're not accepting responsibility that I'm here because of my own choices. Because when you accept that responsibility, then you can do something about it. So you got to own that your debt is yours, and it's your fault. You got to also own that you can make money. So number one, you got to own your debt and then you've got to forget about it. Okay. "I got this debt, my fault. That's it. I'm not going to think about my dad anymore."
Not that you're not going to pay it, you just don't focus on it. Now what am I going to focus on? Income. Number two is focus on making lots of money. How do I make a lot of money? Well, one, you've got to accept it's good for me to make a lot of money. I want to make a lot of money and I can make a lot of money. So focus on making money. Master how to make money. Learn to earn. How do you do that? Well, get around people that are making lots of money and find out how they did it and do what they did. It's duplicatable. You can figure this out, but you've got to focus on the goal. You've got to focus on the goal of massive income, not on the hole of debt.
See, if you want to climb the mountain of abundance, you can't the climb mountain of abundance while you're focusing back here on the hole of debt. So you focus on the goal, not the hole. Hold onto that thought. Focus on the goal of abundance, not the whole. If I'm going like, "I'm going to be debt free." My subconscious mind is still focused on debt. I'm still focusing on the financial hole you've done for yourself.
Okay. I get it. The hole is there, it's real. I'm going to fill it in. But when you start making a lot of money, and you focused on abundance, the hole's going to fill itself up because you're going to make more money, you're going to overwhelm your problems with income. It's not a debt problem, it's an income problem. You make enough money to take care of all your needs and then some, your debt's going to be paid off.
Just if you focus on making more money and then focus on climbing the mountain of abundance and debt, you're just going to leave the hole of debt far behind. All right. So number two is master making money. Got to do that. The third step is you've got to master having money. And this was one of those stark like slap upside the head realizations that I had, was that I was kind of raised that having money made you probably materialistic and greedy and evil and bad and all that kind of stuff. So rich was bad. Having a lot of money was bad. So even when I learned to make a lot of money, I always had a problem having money. So I managed to stay broke. In fact, the more money I made, it seemed like the morning in debt that I went. Okay. Can you relate to that?
It's like the more money I make, the more in debt I seem to go, and I seem to be, I was like climbing a bigger mountain and digging a bigger hole. Why? Because I didn't know how to have money. I believed that money was root of all evil. I believed subconsciously that money meant you were greedy or that you were going to take advantage of people and having a lot of money made you a bad person. And so I had a hard time having money. So you got to learn to have money, create an abundance mentality. Now how do you do that? By telling yourself, "Money is awesome. I make money, I attract money easily and often." Visit your bank account every day, log into your bank account and look at it and celebrate every time it goes up. You've got to reprogram, recondition your mind to having lots of money. That it's good to have lots of money because when you have it now the debt, you can pay it off.
Okay. So I got to learn how to focus on making money, focus on having money. The fourth step is focused on multiplying money. I'm not going to talk about that in this video because it goes from having an abundance to creating wealth. Which means now, whatever I want, I never have to go into debt to get what I want. I have money. Now, I'm not talking about financial investing. I'm just giving you a mindset, and a framework for how do I get out of debt, stay out of debt forever?
By focusing on making money and focusing on having lots of money. So when you focus on having money, you'll have money. Now how do I focus on having money? I got all this debt, and I don't have my that much money. So here's what I want you to do. Here's your homework on this video, is you need to find out how much you're actually worth and stop focusing on how much debt that I have and start focusing on your net worth because your net worth can constantly be going up, even while you still have debt.
As long as I start making more money and then I start having more money. Net worth is how much am I worth when you take all my liabilities, all the debt that I have and all my assets, all the cash and things of value that I have and I actually compare them. And as the assets grow and the cash in the bank grows and other assets like things that I own, like real estate or whatever, as it grows, liabilities are overtaken by the assets. So what you want to do is get a financial statement. In fact, I'm going to give you a link here in a minute, I'm going to give you a free financial statement template that you can use to figure out what your personal net worth is today. So you can figure out what is the starting point and what is my personal net worth today.
So we're going to give you a free financial template. In fact, I'll go and tell you right now, click on the link down in the video below or somewhere on this page, depending on where you're watching this video. Or you can go to yesmasters.com/networth, yesmasters.com/networth. N-E-T-W-O-R-T-H and go there and you can get a free template of a financial statement where you're going to put in on all of your assets, how much cash you have, the value of your car, all the assets you have and the liabilities. How much debt do you have, how much credit card debt, debt owed on your house, debt owed on your car. And so you're going to have all the assets minus all your liabilities. And what's left over is your net worth.
Now, for some of you, your net worth right now will be below zero. That's okay. I want you then to update your financial statement every month. And if you start focusing on this and focusing on your net worth, focusing on making money and having money. What I promise you will see over the next year and two years and in the future is that you will see that net worth begin to creep up and then that net worth will begin to jump up and grow, and grow, and grow because you focused not on the debt and getting out of debt, but you focused on making it money and then you focus on having money. And then as you start to do that, you can learn how to multiply your money, which is how you can ultimately create massive wealth.
But let's get started with learning how to make money and learning how to have money and focusing on that and getting out of debt forever by focusing on creating a net worth and wealth for the rest of your life. You can do this if you have thoughts, comments or ideas, things that you've done that have helped you create wealth, create net worth. Make sure you post those down below, if the video has been helpful for you. Give it a thumbs up, subscribe to the channel if you haven't done that, and I'll talk to you on the next video.