Why You’re a Broke Joke (and how-to fix it)

How do I get out of debt?

This is what a friend asked me recently. I was sort of surprised that this person was in debt because they’re a smart dude. I openly asked how someone so smart can make so many mistakes. He then asked me how someone so smart can get so drunk sometimes. Alright, good point. This reminded me of what I learned from reading up on basic psychology.

The reason that you’re broke is the same reason as to why you’re out of shape or addicted to cigarettes. We don’t make logical decisions. We’re all emotional beings. We act on emotion and don’t use logic always. This means that we just do whatever is most convenient at the time.

In the past I even compared getting out of debt to a hangover because the smartest people do the dumbest things. We’ve all consumed more vodka than we should at some party. We’ve all spent money that we didn’t have. This sort of stuff just happens.

We all just figure that everything is going to be okay if we keep on waiting for something to happen.

Here’s a reality check: you have to make things happen!

Why are you a broke joke?

Because you’re waiting for something to happen. There’s no other answer. Since I want you to have a blast in your 20s, I want you to have more money in your pocket. This means that I don’t want you to be a broke joke anymore. In turn this means that you have to take action right now.

What are three powerful moves that you make right now to set yourself up to save money/pay down debt?

1. Pay yourself first. Call your payroll department or bank to ask them for automatic deductions.
2. Cut a subscription. Cut back on your fixed expenses so that you have more money for yourself.
3. Increase your income. Start an online business or try any of the strategies promoted on here to improve your finances.

How do I get out of debt?

By taking action right now.

I recently put together a piece on how you can get out of debt. I shared a quick tool in there that allows you to track your debt and your progress towards becoming debt-free.

This is me calling you out. The New Year is almost here. Why wait to set a resolution? Do something now.

How can I finally save some money?

I have some amazing news for you. You already make enough money! It’s nice to increase your income to the point that you can retire early. However, you don’t need to make the big bucks to save money. Anyone can save money. When you make more money, you can save more money. When you make little money, you can still save a bit of it.

You have to stop relying on willpower and thinking that everything will be okay on day. Things will work out if you plan for it.

The best part of all of this planning is that it doesn’t take up all of your free time. Get your payroll to take automatic deductions from your check, find an extra $50 per month towards debt, or stop going out so often.

When someone asks you, “how do I get out of debt?” the question that you should ask is simple.

“What have you done recently to get out of debt?”

If this person hasn’t done anything then it’s time to do something. There are many different strategies for paying off debt (link to 2,000 words on crushing debt). None of these should matter until you start putting your first dollar towards becoming debt free.

Are you ready to get out of debt like a champ?