A couple weeks ago I missed a payment. I know, I’m on here preaching constantly about the value of paying off bills and credit card debt as soon as possible.
But you know what? I completely forgot. With the action surrounding back to school season and gearing up for another busy winter, I must have missed a notification or an automated reminder telling me to pay up.
Fortunately it’s an easy mistake to correct quickly, but for someone who takes these types of payments quite seriously, this is an embarrassing, frustrating mistake.
How do I justify it?
I don’t. But sometimes mistakes happen. Sometimes things get missed.
Our Brains Would Rather Ignore Our Finances
When life gets busy and you’re having fun it’s easy to miss the things you’d rather not think about anyways.
- Car payments
- Utility bills
These three elements allow us to live our lives - to drive around, to put a roof over our heads, to keep our home base lit and heated. But it would be a lot nicer if these things just automatically took care of themselves, right? Right, but that would mean that they’re free, and that ain’t happening any time soon.
What About Borrowing?
Alright, we’re getting to that. When you need to borrow money to pay for a new home, renovations, a new business, or to consolidate your debt, there are a lot of factors to consider. We work closely with our clients to find the right fit - we don’t turn people down when they’re looking for help, but committing to the process is important.
Let’s take a closer look at that process.
Step 1. Contact: we usually hear from people who pick up the phone or send us a message. People are referred, people find us online, or people look us up directly.
Step 2. The Deal: once we’ve determined the best course of action, we get to work to partner up with an investor.
Well, once again, we’re missing a vital step in the borrowing process.
The Exit Strategy
Look, we’d all love to live debt free, but it’s a long road to get to that horizon. In the meantime, life isn’t meant to be lived with one eye constantly on the future.
Building a concrete exit strategy to one day remove yourself from debt, either in the realm of one specific deal or set of payments, or to emerge completely debt free, is a strategy that runs in the background. An exit strategy allows us to live our lives in the moment - to enjoy our families, our work, and our families when we’re not at work.
To build an exit strategy that works, we use the personal goals of our clients combined with specific payment amounts and dates to map out one’s emergence from debt.
In short, here’s what you’re doing, here’s why, and here’s the day you’ll be done.
Borrowing money is a big decision that requires careful calculations - not only to spend that money, but to pay it back as well.
It’s truly a can’t miss strategy.