The one step most people skip that makes debt payoff a slam dunk

If you don’t do this, you’ll never pay off your debt

Read time: 4 ½ minutes

For the past three years, I’ve been coaching people on their personal finances.

Over that time, I’ve worked with hundreds of people who struggle with debt.

And I’ve discovered that one factor determines whether they’ll become debt-free more than any other.

If they have it, they go into turbo mode. Last month one couple paid off $7,000 within 30 days of implementing this.

If they don’t have it, they might as well not even try. I’ll talk to them years later and they’re still telling me how they’re “about to pay off their first credit card.”

Think you know what it is?

It’s not a high income.  I have teachers and social workers kicking the butts of engineers.

It’s not about the size of the debt.  This works on $100 of debt or $100k.

It’s not even desperation.  I’ve learned that being stressed about your debt doesn’t mean you’re ready to pay it off.

Today, I’ll break down what this one thing is, why it’s so powerful, and show you exactly how I implement it with my private coaching clients to help them pay off mountains of debt in no time at all.

In today’s issue:

• What to build BEFORE you try to pay off debt

• Exactly how I use this with clients to turn them into debt-killing machines

• How you can build one yourself and become a debt-free ninja (black belt not included)

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The secret to turbo debt payoff

Onto the good stuff.

The one thing you need to have if you want to pay off debt quickly is…

A vision.

A vision is a meaningful goal that you’re aiming for. It’s the reason WHY you're doing something.

Everyone says "I need to eat better". Yet no one does.

Giving up your favorite foods is about as fun as taking algebra class over summer break, and a vague sense of wanting to see your toes again isn't enough motivation to stick with a diet longer than a week.

Who actually loses weight? 

The groom who says "I need to lose 10 lbs for my wedding."

He has a vision.

That donut doesn't taste as good when you imagine yourself squeezing into a too-small-suit and forever seeing your double chin staring back at you from pictures hanging in your home.

It's the same with spending.

When I don't know what I want out of life, of course I won't stop grabbing Chipotle 3 times a week. It’s fun, convenient, and makes me happy.

But if it’s been my mom’s dream to see the Eiffel Tower and I have a vision of taking my parents to Paris next summer, that burrito costs me more than $9.

It costs me my trip with her.

Killing mindless spending

Visions are powerful.

Changing your behavior requires a reason to change your behavior.

A vision is that reason.

And the best part is, a vision makes that change feel good.

I’m not saying “no” to Chipotle, I’m saying “yes” to Paris.

It’s a small change, but it’s world of difference.

Instead of depriving myself so I can feel more “responsible”, I’m choosing to squeeze my money for every drop of joy it has.

And that feels great.

How I help clients build a vision and get out of debt

Before I give anyone a debt payoff plan, I always start with vision.

Vision drives everything.

To help people uncover their vision, here are 5 of my favorite questions to ask:

1. What do you want your reputation to be?

2. What are some of your favorite memories? What made them so special?

3. What are you uniquely gifted at and how could you use that to serve others?

4. What would it look like if money wasn’t an obstacle to you doing that? What would it feel like?

5. What is your greatest fear?

Let’s use me as my own example client.

Here are what my answers would be to those questions.

1. I want a reputation of being wise, loving, generous, and a servant.

2. When I was 8 my father took me to a Minnesota Twins expo for my birthday. We rarely had extra money to spend, but he bought me a baseball and a pack of cards to get signed. I felt so special.

3. I love to talk about money and love to see other people win. I want to help millions use money to live their lives meaningfully, radically unleashing their talents and callings.

4. My time and focus wouldn’t be split between a W-2 job and making more great resources. I could help more people, faster, better.

5. Wasting my life. Being stuck in a 9-5 job and never pushing myself further. Missing my family’s life while putting in endless hours at the office. I could go on. There’s many.

So, what did we learn about me?

Pretty clearly my vision for my future should include freedom where I’m no longer working a standard job. 

Probably a business where I’m helping other people win with money.

And it’s also important that I’m making incredible memories with family and friends.

Once I have that picture in my head, all that’s left to do is write out the actions I’m willing to take to get there.

Here are mine:

• Saving and investing aggressively so I can have enough passive income to make work optional.

• Investing money into courses and mastermind groups to improve my public speaking, my writing, and my skill as a financial coach.

• Carving out a large part of my budget to do meaningful experiences with the people I love.

How motivated do you think I feel to do those things?

How much easier is it to say no to the mindless late-night scroll through Amazon?

Your spending changes when you have a reason for it to change.

Your Turn

Here’s exactly what we just went through laid out step-by-step for you.

Ask yourself:

1. What do you want your reputation to be?

2. What are some of your favorite memories? What made them so special?

3. What are you uniquely gifted at and how could you use that to serve others?

4. What would it look like if money wasn’t an obstacle to you doing that? What would it feel like?

5. What is your greatest fear?

Then, by yourself or with a trusted person, write/talk about what those answers tell you about what your ideal life would look like.

Once you have that ideal life crystal clear in your mind, then you lay out your path to get there.

What will you start doing? 

What will you do more of?

What will you stop doing?

Build your vision, and win.

Keep growing,

P.S. If you decide to do this, let me know! I’d be happy to weigh in with any questions you have.

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