When discussing debt elimination my clients often see their debt as something monumental. In a way, I agree with them. I often think of the Grand Canyon. Think about how the Canyon was created for a moment. A relatively minuscule trickle of water wiped out millions of cubic yards of earth. All that was necessary was consistent energy over time. To imagine that something so large was crated by something so small is mind boggling, and your debts can be wiped out in exactly the same fashion.
The first step in eliminating debt and later to building wealth is by creating a monthly surplus in your cash flow. By “surplus” I literally mean that you are bringing in more income than you are spending. This can be done in a number of ways, some of which are quite obvious. Cutting back on unnecessary, or irresponsible spending habits for example can be an effective, albeit cumbersome way to create the extra cash flow you need to begin the process.
There are other more sophisticated ways, however to accomplish the same end. You can restructure your debt, allowing you to continue living the lifestyle you are accustomed to, and still increase your monthly surplus. By instituting these strategies, you can begin chipping steadily, and strategically at your debt.
It is hard to believe, but I have personally helped clients to create as little as $200 a month in positive cash flow, and used that small amount to begin their debt elimination process. The river that runs through the Grand Canyon took centuries to carve its mark in the earth. The $200 trickle I mentioned above was able to take down a mountain of debt, including credit cards, car loans, AND a mortgage totaling over $600,000… in only 8 years.
Now that’s the kind of physics I like!