What EVERYONE Needs To Know About Debt
How much money do you make each year? I bet you can answer that fairly quickly, likely to the penny.
How much money do you owe? Are you as comfortable and aware of this value as you were with the first one? Eyes usually glaze over when we start to think about this in real detail. You're not alone...most people are totally out of touch when it comes to their debts. They think they have a ballpark figure, but it's like much more than they are emotionally even willing to admit to themselves, let alone others.
If you are in debt, do you talk about it openly? Have you shared that value with friends and family? Posted about it on facebook, twitter, and gotten tons of likes? Have you shared it with your manager and your boyfriend on your first date? Of course you haven't, because you're not willing to admit it, but debt is embarrassing and it's destroying you from the inside out.
We've normalized debt so deeply that we have just all agreed to keep it a deep dark secret, one that we assume everyone else also has hidden in their monthly expenses, but never talked about again. And because we've normalized it, we keep getting more, just to keep up with our friends who are also getting more. More and more debt to impress people we don't even know with money we don't really even have.
Not only is debt destroying you, it's destroying the American Dream. The American Dream to have and run your own profitable business. To be able to do anything your heart desires!
That unknown value that you're constantly avoiding is actually blocking you from building and growing the business you've always dreamed of owning. Debt has the ability to not only eat away at you, but it will eat away at your budding business as well...here's how...
1. Debt is clutter and clutter doesn't allow you to focus on what is really important in your business. It means you don't have a good understanding of your finances. If you don't know what's going in and what's going out, you're doomed. If you have debt, it means you bought something you couldn't afford, with money you didn't have. If you're guilty of know even knowing how much you owe exactly, that means there is real clutter happening and you need to clean that up to create some clarity and free space in your mind.
2. Debt doesn't allow you to ride through some tough economic times. Regardless of your sales that money, you still owe the debt. Which means that your business is way more vulnerable than you want it to be. The more debt you have, the more dependent you are on a healthy economy, and we all know how that story ends.
3. Debt makes you desperate. You cannot be authentic to your business if you have debt looming over your head. Believe me, people can tell when you're being sincere and when you're basically begging for their business because you have to make payments to your lender each month. Removing debt allow you the freedom to sell your service or product in a more relaxed and authentic way, and once you do that, your business will blossom! .
4. Debt allows you to spend more than you need to. This cuts into your profits! When you're able to buy things with money that seems like it belongs in a monopoly game set, you tend to spend more than you would if you used real money. You know, the kind that you actually earned, the green stuff that is hopefully in your bank account. Creating a budget will show you where you can cut expenses and start building more profit, but when you're using borrowed money, it doesn't feel real and you end up buying much more than necessary.
5. Debt crushes your creativity. You started your own business because you wanted to be able to move and shake the world in a way only you can do. You're constantly working to create new products, new services, new locations, let's go! When you're locked into debt you do not have the freedom or flexibility to run your business the way you desire. You suffocate your creativity because it's less about what you're providing and more about what you need to make. You do not have the emotional energy to create when you're trying to climb out of quick sand.
Click to Tweet! Debt suffocates your creativity and creativity is freedom.
6. Debt kills your confidence. When you know you owe someone money there is this chain that links you two together. You are bonded, you are the slave to the lender. If you aren't sharing your debts openly with the world, then you are ashamed of them on some level whether you're ready to admit it or not. Shame breeds emotions of lack; lack of self-esteem, lack of worth, lack of motivation, lack of control...And when you've lost the confidence my friends, you've lost the American Dream.
How can you expect to flourish if you're chained to the bank? Let's build our businesses with cold hard cash. Let's build them with creativity, confidence and freedom!
If you are currently locked down by the chains of debt and want to get out, or want to review your finances before building your business, contact me here to set up a FREE 30 min Destroy My Debt call and we'll create a plan for freedom!
Take the What's My Money Mindset quiz below & share the link with friends!