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Getting Out Of Debt Requires Big Changes In Perspective

We live in an over-indebted society. Debt-financed consumption has become so ingrained into our culture, that it’s unusual to be debt free. Unfortunately, this means that the financial state of most people is mediocre at best.

There are countless books that provide steps, tips and how-to plans on how to get out of debt, but the reality is that the most impactful factor in getting out of debt is probably changing your perspective in a few areas.

The change in perspective that is required to get out of debt is massive. You must view your lifestyle differently, your views on what you may or may not think you are entitled to, and how you view money. This is very difficult for many people and is the main reason most people stay in debt.

How do you need to view your lifestyle differently? There are a few ways.

First, you need to become more intentional. Too many people spend money mindlessly rather than thinking about every time they open up their wallet.

Building a budget can help in this area. Decide where you’re going to spend your money before you have the opportunity to spend it. Next, what are the most important areas of your lifestyle? Getting out of debt doesn’t mean giving up everything in your life. Find what is important, and then cut back severely on the unimportant spending areas.

With regards to entitlements, many people believe they are entitled to a certain lifestyle simply because of how they grew up, or because they live in America, or for a number of other reasons. Unfortunately, you’re not entitled to any sort of lifestyle, and your lifestyle must be funded by work. Stop taking for granted the lifestyle which we’ve become too accustomed to and instead be thankful for the fact that you can satisfy essentially every craving and urge you have at any time. It is indeed ridiculous how over-indulged we are in America. Why is this important? Because by being thankful for the good things in life rather than feeling entitled to them, you will likely change spending and financial behaviors as a result.

Lastly, you have to change how you view money. Each dollar you own had to be earned. It’s time to start viewing your money as results of work. It did not fall out of the tree but rather was earned through effort. Would you trade an hour of your time for that movie? Would you trade a week of work for that expensive hotel room? See how it impacts the way you view the things we buy? This is a very healthy way to view money, because it reflects the reality of the money we earn.

Changing your perspectives on your lifestyle and the money which funds it is an essential component to getting out of debt. Combining this with quality strategies and financial plans to get your spending under control and get out of debt can be a winning combination.

Kevin is a freelance writer who frequently writes on Dividend Stocks and DRIP Investing.

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