Breaking the Habit of Being in Debt

Tatiana Hart/ August 12, 2018/ MINDSET/ 0 comments

Breaking the Habit

In order to break a habit you must create a new one.

Habits come from the subconscious mind therefore, cannot be controlled by our will power.

If you  ever tried to change a habit with the sheer magic of your will power, you know that did not make a dent, at least in the long run.

Finding Your Why

So how do you get rid of bad habits? First, you need to figure out a why”  behind the habit and then to come out with another alternative to satisfy the why.

For instance, you eat chocolate when you are upset or emotionally derailed.

Does the chocolate resolve the problem due to which  you are emotionally riled up?

Of course, not. You do not even think about when you devour a chocolate bar.

Try slowing down and concentrating on your breath, for instance. Did your perspective change from doing it?

The same applies to spending money you do not have. You do not necessarily need the stuff you buy, but you do it anyway over and over again. Until you get  fed up.

Your bad habit of spending the money you do not have signals that you care what others think instead of understanding what you truly want. So we found the why.

When we apply the golden circle rule, finding the why to get what we want, we’ll find the how to achieve it.


My what is financial freedom and a wide range of choices.

My why is not to ever work for money because I can concentrate on constructive work and avoid minutia imposed by a self-indulged boss.

And the how unfolds in the process of my decision to reach the what strengthening to the point of no return.

The how includes numerous side hustles and the awareness of fund allocations by way  of remembering why you are buying an item or a service, also known as budgeting.

Budgeting is not a diet, – it is fasting, if I may. We look for a perfect diet and forget that sometimes we need to get our body a break and stop eating for a day.

You are not going to wither away in a day: instead your body has the chance to direct its energy to repair cells and rejuvenate its functionality.

The same applies to budgeting. Regardless of how much money you make you need to be aware of where it goes. You have to invest money or save enough to invest.

Borrowing is a short term strategy, thus, a lot of risk-averse people prefer to have cash for investing. You have to stop eating (metaphorically) to set enough cash aside to buy an investment property, to quit your job, to buy a car, etc..

Wealth = Freedom from Debt

Freedom from Debt = Planned Fasting (Budgeting)



Debt Payoff  Schedule

I took actionable steps and reduced the amount of debt reflected in the chart below since A Path to Financial Independence: From Broke to Financially FreeI have also shifted my net worth in the positive direction.


Debt Payoff Schedule

Since I am an extremely visual person I had to have a diagram to feel the progress and push myself harder. i use Google Sheets to map out data and convert it into a color coded diagram.

The color coding reflects two types of payments – minimum required payment and principal only.

I discussed earlier how I received a discount for Direct Debit automatic payments and developed a strategy to reduce the principal amount a lot faster and pay less interest by requesting to apply other than minimum payments to the principal only.

I spreadsheet my budget in Google Sheets as well including grocery and essentials shopping with prices and quantities on a weekly basis.

The main advantage of Google Sheets is synchronizations capability across multiple devices. Thus, you can have a grocery shopping list on your phone while you shopping. It disallows you to break the budget if you follow it.

Regardless the tools you use to streamline your financial freedom, the success of getting out of debt lies in the mindset and practice. You must develop different practices and systems to build a habit of being debt free.

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