There is no doubt that everyone wants to be debt free and avoid owing people money unless they had to, but to what end? When we are debt free what does that really mean? At TWiCE, we aim to empower people with their finances, but we also know that being debt free is not the be all and end all. However, without debt and with better money management, people can have a better quality of life which will allow them to follow their passions.
A big part of taking the steps to being debt free involve goal setting, but simply stating ‘I want to be debt free’ is not sufficient, or even effective. Goal setting and your debt should be approached with a pen and paper in hand. Writing down your goals is the first step, and it can be as many or as few as you would like. There’s a lot to be said about writing down and laying out your goals physically in front of you. When you can see what’s ahead, you can better plan for how to get there. Want to save up so you can make an investment? That’s a goal in itself, when you’re writing it all down, ‘be debt free so I can do X’ is much more positive; your goals should always have a net positive goal in mind.
Being debt free might be considered by some to be a net positive, overall you’ve gained something, but in financial terms it’s simply not being below zero. Although ‘being debt free’ is a good goal, it’s a very large scale one. An important part of goal setting is breaking up that goal into steps; generally at least 3 will help to divide the goal into more manageable chunks. Ask yourself how you’re going to get to step one, step two, and three and then write that down, too. Each of those steps should be something material and achievable, and they should be given a timeline (but one that you can adjust if needed). From there you have a goal, you’ve given it a ‘why’, a central motivation, a few steps to getting there, and a rough time in which you’d like to do it.
Writing all this stuff out may seem kind of straightforward, or even overly simple, but sometimes the simple fact that it's right in front of you can give you the nudge to start working towards it. One of our TWiCE campaigners does this on a consistent basis, whether it’s a financial goal, a life goal, fitness goal or whatever it might be. Seeing the goal in front of them and spending at least 30% of their spare time on that goal is progress and heading in the right direction towards making that goal a reality.
We completely understand that even with all this goal setting, the challenge ahead can seem overwhelming. That’s why TWiCE provides consistent support and information to those working towards their financial goals. If you’d like to find out a bit more about goal setting, or have some other questions about how to get ahead, check out what we do here.
- Tom L
Disclaimer: The above information does not replace financial advice. Please ensure you seek independent financial advice before making any decisions regarding your finances. We also recommend that you carry out your own research to ensure that this is right for your own unique circumstances. Please note that we sometimes link to other websites but we cannot be held responsible for their content.