It wasn’t that long ago when I had a mountain of debt piling up on my kitchen counter, I had too much month at the end of the money! I was so far behind in debt and I just couldn’t seem to keep up with the bills on the income I was earning.
My super genius answer to the debt problem: Don’t open any of my bills. I figured if I didn’t open the mail then I wouldn’t see the debt and it didn’t exist. Out of sight, out of mind. Sounds like a great plan, huh? Well I’m sure you can see that this is a horrible idea but when you let your emotions get involved, logic goes out the window and you end up thinking financial suicide is a great idea.
I remember that I also hated checking my balance in my bank accounts as well because I knew there wasn’t enough money to cover all the expenses. This was especially hard for me to grasp because I was always on top of my finances, paying all my bills on time.
Long story short, I had just bought a new house and with that I had incurred a ton of new expenses but wasn’t bringing any additional income. I figured that I could cover all the perceived expenses once I bought the house. After being in the house for a while I ran up my credit cards because I had to have all new furniture, brand new 50 in LCD flat screen TVs for every room, and of course a top of the line surround sound system. Not only did I have multiple credit cards that I was paying on now but the Home Owners Association dues also went up and I was no longer receiving as much overtime at work. This is what brought me to the state of mind where I didn’t want to deal with any of my bills and I just began to shut down.
I knew I would need to eventually deal with that mountain of bills soon, other wise I would lose everything so I sat down and figured out my various options.
After thinking about all of my options I had come up with a solution and a plan of action to execute it. What I did was rent out the house, sold the surround sound and some furniture to the new tenants. I refinanced the house to a lower interest rate so I actually had $300 in cash flow every month from that property. This also allowed me to drop those high utility bills that I had every month. I also cut out on all unnecessary expenses and cut down on the ones that were necessary for survival.
I was reluctant at first to want to rent it out and move to a small apartment but I knew this would only be a temporary solution to a much bigger plan.
Just thinking outside the box and being a little creative coupled with some temporary sacrifices I completely changed my life. After living in the apartment for a short time; I was able to pay off my credit cards, save up some money, and it also began my love for real estate.
If I wasn’t willing to take a step back and look at the big picture my life would have never changed for the better. I would probably still be deep in credit card debt, living paycheck to paycheck and stuck at the same job that I hated.
Be willing to change and look at every “problem” as an opportunity to move closer to what you desire out of life. Lets not settle for less than we deserve, there are plenty of opportunities out there everyday to help us live a more fulfilling and prosperous life.
What problems have you turned into opportunities?