Before you can really start to build wealth, you need to pay off debt.
When we think of investing, the first thing that comes to mind is often the stock market. We think of putting money in stocks, or even bonds. However, it's also important to invest in yourself. And one of the best ways to invest in yourself is to pay off debt.
Infographic: Is Debt Holding You Back?
The site Easy Finance put together a neat infographic about Jeff Rose's Debt Movement, and it offers insight into just how debt could be holding you back. The infographic points out that consumers see debt as the “new normal” of household finances.
This “new normal” could be holding you back.
Every time you make debt payments, you are making interest payments straight into someone else's pocket, and that is money that you aren't using to grow your own wealth. What if, instead of paying thousands of dollars in interest on your debt, you were able to invest those financial resources?
You could reach financial freedom much sooner. As a result, it makes sense to pay off debt as quickly as possible. That way you can start focusing on building the assets that contribute to a more secure financial future.
I'm not saying that you need to completely eradicate all debt from your life; in some cases, low interest debt makes sense. The leverage involved with using low-interest debt for real estate, or to start a business, can help you see bigger returns. But consumer debt is a completely different matter. This high interest debt doesn't provide you with a way to build assets that can provide cash flow later.
If you are ready to take control of your finances and build a better future, but you aren't sure where to start to pay off your debt, consider joining The Debt Movement. You'll get a lot of help from a great community, as well as great educational and inspirational resources. And you don't even need to start big. Consider starting small and simple.
The important thing is to get started, and make this investment in yourself.