Wednesday, 23 August 2017

Preparing For Life Outside the Corral

As I mentioned yesterday, I am now two months away from being Totally Debt Free. I will admit that I am anxious to have this momentous milestone behind me. 

I have already pondered and dreamed of what I might do, once I achieve this goal. All of the immediate things are rather boring . . . no epic weekends in Vegas or what have you. 

For me, the goals and tasks immediately after achieving Total Debt Freedom, is to put into place various measures to ensure that I will not fall back into the trap of endless debt again.

The first of which is rebuilding/building up my: immediate, Mid-Term and Long-Term cash reserves. (So as to replace credit cards for emergency cash). 

After which my savings for the future can begin. This is the actually dreaming for the future part comes in.

In part, my path to ensuring that I will not fall into the trap of endless debt began when I started on this path towards Total Debt Freedom.

In truth, the first thing you need to do is change your way of thinking, change your mindset, and how you think of and relate to money and debt.

For example, I spend my day to day expenses with cash, so as to make them easier to budget and to bring back the pain of the spend.

Once any credit card was paid off (now all of them) I ensure that all credit card balances are paid off (in full) each payday.

This is to ensure that I do not carry a balance, other than in extreme situations. I have trained myself that the “available balance” on credit cards is not “free money.” . . . Any spends on credit cards will come to bite me within two weeks.

Finally, I make sure to balance my budget for each payperiod. This is to ensure that I live within my means and that fiscal responsibility is a way of life.

All of this is to help better prepare me for “life outside the corral.” Trust me, it is an adjustment to going from indebted to being Totally Debt Free.

I have been here before, this will be the second time I have become Totally Debt Free. (Okay, third time, if you count childhood through the beginnings of working life.)

The last time it happened in the wrong way, or rather I wasn’t ready for it. I had bought some property, just over 3 acres and the value had risen (the height of a bubble.)

So I sold it and became debt free overnight. I went from being under crushing debt to being Totally Debt Free in a shockingly short period of time.

It actually caused a crisis within me, as I had no idea what I was supposed to do, other than earn money so as to hand it out to governments and corporations. 

That is why this time I am making sure to change my mindset, to prepare myself for life beyond going through that gate. 

For now, I do not see anything beyond actually exiting that gate. I refuse to plan or think about what will happen beyond October 23rd. 

I know that a thousand things could happen to throw this process off; most of them would/could be self-inflicted (been there, done that).

That is why I just keep focussed on the day to day details of what I need to do to keep moving myself forward toward that goal towards exiting that Corral of Debt. 

I will plan and shift my focus onto that Rebuilding Phase, once I enter it. For now, I am still in the late stages of the “Debt Elimination Phase.”

So, I will maintain focus so I don’t do anything stupid . . . again . . . (Sigh).

Remember: Debt is a Corral, Debt Freedom is The Gate.

As always: Keep your head up, your attitude positive, and keep moving forward!

1 comment:

  1. I would also eliminate overdraft from your bank account. Instead have a fully funded emergency fund of 3-6 months of expenses saved up.