Have you noticed that so many people here are so busy building up, that they never mention slimming down? I’m not talking about body building and diets, but I am talking about one’s overall financial plan.
When you think of the “Fast Lane” in terms of a metaphor, you probably think of a Porsche or a “Lambo” whizzing by at break neck speeds. It’s fun to think in terms of expensive sports cars that glide through the roadways in the same ways we wish we could glide through life. Wouldn’t you agree that so many of us are busy looking at the end goal (speed) and yet we tend to over look something just as important, the beginning?
Many of us are at the beginning, driving slowly down a road with no certain destination in mind. We don’t seem to mind because there are thousands of others here just like us. From our perspective everything looks ok and we blend in nicely with other traffic. However, if you looked at it from above, what you would see is a traffic jam.
We move along in pace with the rest of the pack and stop when times warrant it. Eventually we do end up at a destination, and we hope it’s better than where we started. In terms of finance, we make enough to get by, and we gain just a little speed along the way.
Then there are those of us that are off road, and more than that, we are driving a muddy path. It seems that no matter how hard we press the gas pedal, the wheels just spin and we don’t get anywhere. So what is this mud? It’s Debt.
Like mud, debt can suck all your energy and effort out of you and sometimes make you go backwards. So what is one method used to free a car bogged down in mud? You toss out the weight.
America’s mentality is largely to charge now and pay later. I believe this current financial crisis could mean that “later” is almost here. Credit cards, house mortgages, car payments, tuition, and other obligations often weigh down those trying to better their lives. As far as I can tell, there are two philosophies concerning debt. There is “bad debt” and “good debt”.
I haven’t read his books yet, but I heard Dave Ramsey address what I’d call bad debt on his radio program. His philosophy is simple; Wipe it out! His premise is that debt binds people and enslaves them. His solution is to exercise extreme financial discipline and attack debt in a systematic manner.
American society is one of instant gratification. People would much rather have the best and have it now than wait until they can afford it. Generations past used to save for months and years before making large purchases, now everything is (or was) paid for with credit.
Instead of falling into the common trap of obtaining more bad debts, one should focus on his bills and try to knock them out as soon a possible. How do you target one specific bill? You budget. So many of us live impulsively and buy whenever we want. What would happen if you actually set a limit to your spending and denied yourself purchases when they exceed your budget? Doesn’t sound fun, but the benefits are there.
For example, let’s say you usually eat out a few times a week. What happens if you cut back on that for a few months and eat more cheaply at home? If you save an average of $25 dollars a week, that’s $100 dollars a month you could apply towards a bad debt bill such as a credit card. In addition to that, what if you discontinued your $45 monthly gym membership and substituted it for a home work out or one at the park? Now you save $145 dollars that could be spent on paying off that high interest credit card.
I won’t beleaguer the point, but small sacrifices add up quickly and will help you eliminate some “mud” that is holding you back. Sure, sacrifice will not be fun and it will require some life style adjustments, but it should be only a temporary measure until you lose enough weight to get out of the mud and moving. I don’t think this concept only pertains to us "average Joes". There have been plenty of celebrities and millionaires that have mismanaged their funds. It’s not so much about “how much” money there is. Instead it’s about “what’s the ratio” of income to spending.
The second type of debt is good debt. This kind is illustrated in Robert Kiyosaki’s Cash Flow game. Good debt is something one would initiate for the purpose of multiplying assets. In essence, one would go into debt in order to control an investment that yields a good profit. For example, it would be good to take out a loan on a $50k business, if in turn it would yield you $200k in profits. As long as your investment plan is sound, going into debt may be an acceptable option. I’ll leave this topic alone because I don’t have the experience to speak to it with any authority.
What’s my point over all? A lot of us are in the slow lane now or stuck in the mud. I think that if we focus on our impediments and remember that the sacrifice is only temporary, we may find that we can go from stuck in the mud straight to the express lane. All that is required is discipline. Although several of the Fast Laners may have never been “stuck” per say, they definitely had to implement discipline in their respective endeavors in order to get where there are today. So to sum it all up, cut back your expenses, pay off your debts quickly, continue to work on your goals, and you may just find that you’ll get a boost and end up cruising in the fast lane in half the time.
When you think of the “Fast Lane” in terms of a metaphor, you probably think of a Porsche or a “Lambo” whizzing by at break neck speeds. It’s fun to think in terms of expensive sports cars that glide through the roadways in the same ways we wish we could glide through life. Wouldn’t you agree that so many of us are busy looking at the end goal (speed) and yet we tend to over look something just as important, the beginning?
Many of us are at the beginning, driving slowly down a road with no certain destination in mind. We don’t seem to mind because there are thousands of others here just like us. From our perspective everything looks ok and we blend in nicely with other traffic. However, if you looked at it from above, what you would see is a traffic jam.
We move along in pace with the rest of the pack and stop when times warrant it. Eventually we do end up at a destination, and we hope it’s better than where we started. In terms of finance, we make enough to get by, and we gain just a little speed along the way.
Then there are those of us that are off road, and more than that, we are driving a muddy path. It seems that no matter how hard we press the gas pedal, the wheels just spin and we don’t get anywhere. So what is this mud? It’s Debt.
Like mud, debt can suck all your energy and effort out of you and sometimes make you go backwards. So what is one method used to free a car bogged down in mud? You toss out the weight.
America’s mentality is largely to charge now and pay later. I believe this current financial crisis could mean that “later” is almost here. Credit cards, house mortgages, car payments, tuition, and other obligations often weigh down those trying to better their lives. As far as I can tell, there are two philosophies concerning debt. There is “bad debt” and “good debt”.
I haven’t read his books yet, but I heard Dave Ramsey address what I’d call bad debt on his radio program. His philosophy is simple; Wipe it out! His premise is that debt binds people and enslaves them. His solution is to exercise extreme financial discipline and attack debt in a systematic manner.
American society is one of instant gratification. People would much rather have the best and have it now than wait until they can afford it. Generations past used to save for months and years before making large purchases, now everything is (or was) paid for with credit.
Instead of falling into the common trap of obtaining more bad debts, one should focus on his bills and try to knock them out as soon a possible. How do you target one specific bill? You budget. So many of us live impulsively and buy whenever we want. What would happen if you actually set a limit to your spending and denied yourself purchases when they exceed your budget? Doesn’t sound fun, but the benefits are there.
For example, let’s say you usually eat out a few times a week. What happens if you cut back on that for a few months and eat more cheaply at home? If you save an average of $25 dollars a week, that’s $100 dollars a month you could apply towards a bad debt bill such as a credit card. In addition to that, what if you discontinued your $45 monthly gym membership and substituted it for a home work out or one at the park? Now you save $145 dollars that could be spent on paying off that high interest credit card.
I won’t beleaguer the point, but small sacrifices add up quickly and will help you eliminate some “mud” that is holding you back. Sure, sacrifice will not be fun and it will require some life style adjustments, but it should be only a temporary measure until you lose enough weight to get out of the mud and moving. I don’t think this concept only pertains to us "average Joes". There have been plenty of celebrities and millionaires that have mismanaged their funds. It’s not so much about “how much” money there is. Instead it’s about “what’s the ratio” of income to spending.
The second type of debt is good debt. This kind is illustrated in Robert Kiyosaki’s Cash Flow game. Good debt is something one would initiate for the purpose of multiplying assets. In essence, one would go into debt in order to control an investment that yields a good profit. For example, it would be good to take out a loan on a $50k business, if in turn it would yield you $200k in profits. As long as your investment plan is sound, going into debt may be an acceptable option. I’ll leave this topic alone because I don’t have the experience to speak to it with any authority.
What’s my point over all? A lot of us are in the slow lane now or stuck in the mud. I think that if we focus on our impediments and remember that the sacrifice is only temporary, we may find that we can go from stuck in the mud straight to the express lane. All that is required is discipline. Although several of the Fast Laners may have never been “stuck” per say, they definitely had to implement discipline in their respective endeavors in order to get where there are today. So to sum it all up, cut back your expenses, pay off your debts quickly, continue to work on your goals, and you may just find that you’ll get a boost and end up cruising in the fast lane in half the time.
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Membership Required: Upgrade to Expose Nearly 1,000,000 Posts
Ready to Unleash the Millionaire Entrepreneur in You?
Become a member of the Fastlane Forum, the private community founded by best-selling author and multi-millionaire entrepreneur MJ DeMarco. Since 2007, MJ DeMarco has poured his heart and soul into the Fastlane Forum, helping entrepreneurs reclaim their time, win their financial freedom, and live their best life.
With more than 39,000 posts packed with insights, strategies, and advice, you’re not just a member—you’re stepping into MJ’s inner-circle, a place where you’ll never be left alone.
Become a member and gain immediate access to...
- Active Community: Ever join a community only to find it DEAD? Not at Fastlane! As you can see from our home page, life-changing content is posted dozens of times daily.
- Exclusive Insights: Direct access to MJ DeMarco’s daily contributions and wisdom.
- Powerful Networking Opportunities: Connect with a diverse group of successful entrepreneurs who can offer mentorship, collaboration, and opportunities.
- Proven Strategies: Learn from the best in the business, with actionable advice and strategies that can accelerate your success.
"You are the average of the five people you surround yourself with the most..."
Who are you surrounding yourself with? Surround yourself with millionaire success. Join Fastlane today!
Join Today
uvxusvjz:
