Is Becoming Debt Free Really Possible in 2020?

Hello Cash Flow Community!

If you're wondering if it’s really possible to become debt free in 2020 then the short answer is, Yes! Don’t worry, we’ll go beyond the short answer and get to the next logical question - How?

Well, it takes a plan and as the old saying from one of our founding fathers, Benjamin Franklin goes: 

“If you fail to plan, you are planning to fail!”

No wonder he’s on the $100 bill… 

You need to have a plan in order to achieve a financial goal like becoming debt-free and luckily I did a video masterclass on how Dan and Megan became debt free after implementing VIP’s 7 Step Road Map To Becoming Debt Free. 

Dan and Megan not only saved tens of thousands of dollars in interest costs, but also increased their cash flow, bought their own home, and started investing as a result of becoming debt-free through this strategy.

I should also mention that Dan and Megan were able to accomplish all of this without having to sacrifice on any of the things that make life enjoyable. Besides, what good is a scarcity mindset when becoming financially free is all about abundance?

So, what are these 7 steps? I’m glad you asked!

VIP’s 7 Step Road Map

Step 1: Set Your Goals. 

Goal setting is important. As the saying goes: you can’t be a chicken without first being an egg at Target… or something like that. Anyway, an important part of goal setting is in the parameters you set around it. Goals that are too ambiguous are rarely achieved. So let’s hone in and focus on your financial goals for the next 3-5 years.

Don’t worry if you and your partner are not on the same page. The most important thing to do is write them down.

Step 2: Find Your Starting Point.

The journey those goals require from you have to start somewhere, and the more you know about yourself at this starting point, the better you can prepare for that journey ahead.

The Cash Flow Cruncher™ is a free resource we created specifically for this purpose. Download the Excel Spreadsheet and follow the included directions so that you can get a clear picture of what your monthly cash flow is.

We define cash flow as the difference between what you earn and what you spend each month. Your monthly cash flow is a critical component of this debt freedom equation.

Step 3: Double-Check Your Starting Point.

Confirm that your Cash Flow Cruncher™ is accurate by tracking your spending for the next 30 days. During this time you’ll also want to get your current credit score. Most credit card companies or mortgage companies you have an account with will provide this to you for free.

Step 4: Boost Your Credit Score

Make it a goal to increase your credit score by 75 points or more in the next 90 days. Our YouTube channel has several videos on how to increase your credit score, so we’ve put together a playlist with our most popular and beneficial videos to get you started in the right direction.

Step 5: Develop Your Debt Weapon™ Strategy

This is when you will identify the Debt Weapons™ you may already have and which ones you want to pursue in the near future. Not sure what a Debt Weapon™ is? Don’t worry, I’ve got you covered.

Step 6: Deploying Those Debt Weapons™!

Depending on what debts you are working on paying off, this is where you strategically attack them by using… you guessed it Debt Weapons™! 

Debt Weapons™ are to a financial goal, what power tools are to building a house - they accelerate the process, but they can be dangerous if used incorrectly. This is one of the reasons why we offer one-on-one coaching. Our coaching members agree that having an expert helping with this part of the process is among the most game-changing aspects of our coaching program.

Step 7: Invest, INVEST, I N V E S T !

The previous steps have helped you pay off more and more debt. As your debts vanish you’ll begin to see more and more monthly cash flow - cash flow you can use for investing purposes. 

There are many avenues to take when it comes to investing, and we talk about most of them on the channel, but if there’s one we can recommend as a good option for nearly everyone it would have to be Real Estate. 

Real Estate has historically been a solid investment. Add that ‘tried & true’ with ‘all these new’ ways to squeeze cash flow out of properties and you’d be hard-pressed to find a better entry into the wild world of investing. Beyond it being a good place to start, it’s also an investment that can be scaled in some truly effective ways.

We teach our members and students how to repeat this process of paying off mortgages whether it’s the home you live in or the one you rent. It all works the same and the savings in interest costs that you get to put back in your pocket can top the hundred thousand mark easily. Til next time… 

Onward and Upward!

Matthew Pillmore & Everyone at VIP Financial Education