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The whole "how to pay off debt" discussion has veered off course and most
experts sharing advice for paying off debt are leading you down a dead end
road. Seriously, if you had the option of paying down your accumulated
debts yourself... the conventional way... or allowing someone else to pay it
down for you, which would you choose? For your sake, I hope you are the
unconventional type. We've seen that the traditional advice for
how to pay off debt by using your PAYCHECK to pay off your mortgage, eliminate
credit card balances and car payments, and and using your PAYCHECK
to accumulate SAVINGS in order to create financial security just doesn't
work. Instead of security, the majority of Americans are undergoing financial
chaos. Safe investments and saving rates are not
keeping up with inflation. 401ks and pensions are worth pennies on the dollar.
It is crazy to continue down this same debt relief and retirement path
that is leading so many folks to the edge of a cliff.
Let me say this, though... In no way am I diminishing the fact that the
traditional "Dave Ramsey" or "Suze Orman" methods of eliminating debt
have helped plenty of folks out there. They certainly have...
And congratulations goes out to those people for taking a positive step
towards financial independence! But I also want to warn these folks
against falling into the same ACCUMULATION mindset that has left so
many people's 401ks, savings and retirement dreams in shambles.
I do want everyone to know that there is a much better way to eliminate
debt and to achieve financial freedom. There is hope.
Here's a new plan... an alternative at least... To pay off debt starts with
being proactive with your financial future. Stop being reactive. Take control
of your finances. Don't just hand your money over to a financial advisor and
hope this person will make you wealthy. INSTEAD... Begin investing your money in cash flowing
assets. Start with rental real estate investments. When you own an asset
like that that delivers passive income each and every month, you are on the
right path towards not only eliminating debt... but also to achieving
financial INDEPENDENCE.
Next, let's automate your debt elimination plan. Start by setting up a
special "debt payoff" bank account. Then... have the cash flow from your
rental real estate automatically deposited into this account.
Nnext... Create monthly drafts inside of this "debt payoff" account to
automatically pay down your debts. Ya see... by automating the process,
you don't have to worry about missing a payment or using this money for
anything else... and therefore, it's more likely to get done.
And in addition to it actually getting done... there are three benefits of this
plan for how to pay off debt that Dave and Suze will never tell you.
First, instead of money coming out of your pocket, someone else -- your
tenants -- are paying down your debt. And guess what, they are also
paying down the mortgage on your rental property and helping you build
equity that you can use to secure more cash flow real estate investments.
Secondly, when you have eliminated your credit card debt and other debts,
you still own your rental real estate, meaning... you have cash flowing
assets putting money in your pocket each and every month to use how you
wish... and that's a big step toward financial independence.
And finally -- perhaps the biggest benefit of all -- this plan takes you down a
road that actually does lead to financial freedom. I think that's a much
better destination than the edge of a cliff. Don't you?
If this all makes sense to you, but you don't know where to begin, I can
show you exactly how I did it at EpicProAcademy.com, or I can do it for you at CashFlowSavvy.com.
See you next week on another episode of Financial Freedom Friday.