Are you afraid of Debt?
The better question should be, who is not afraid of Debt ?
After all, we would all like to be in the situation where your mortgage, your car loans or any credit debt is paid off. This scenario may not be realistic for most of us. I know that it is not realistic for me. However learning to live with your debts is a more reasonable goal to achieve.
Having a plan that allows you to see the light at the end of the tunnel makes getting up everyday easier. Here is my personal plan that I have been working on for the last two years.
After having 5 years of amazing growth, things started going down, the team that I had built and trained decided that the grass was greener on the other side. The debts were getting larger and my income was shirking. I felt that I could not keep up. I felt that I had a choice to make, I knew that bankruptcy was not a choice, I created the debt and I was going to pay off the debt as long as I was healthy.
In summer of 2011, I took a trip that my family had planned for a life time. On this trip, I decided to just clear my head and enjoy the trip with my family. I knew what laid ahead of me back at work, but I thought just for a short time, I could just forget and relax.
During this trip, my family brought me back to what I worked so hard to achieve and to just let it go would be a waste. Right than and there, I made the decision to put into practice what I have been preaching during my whole career.
I Put a plan in place and concentrate not on what happened, but what is going to happen. I worked a budget on what my total cost would be every month- taking into consideration the cost of the business and my personal expenses- I took everything into account.
than I reviewed again the budget and than I made two different columns - NEEDS and WANTS- after doing this, I looked at the "needs" and decided how can I reduce the cost of these things that I needed.( I achieved this by working on getting a better interest rate, or get a better cellpackacge for example, anything that allowed me to reduce my cost, even if it was just a dollar, I took it) what I could do to reduce the total monthly cost? was my goal.
After this was done, I separated my business and my personal lists and again I reviewed each one separate. after this was complete- I knew exactly how much money I need every month to survive and how much money I need to start paying things off. ( this took a day to do)
that was the key--HOW MUCH MONEY I NEEDED TO SURVIVE AND HAVE HOW MUCH MONEY I NEEDED TO PAY THINGS OFF.
Than I looked at my business model that I was working on and realized that at this stage of my life, my business model was not working. My business model was to build a team and help them achieve success, in turn, I would achieve success. I spent my time training everybody else that I let my work slide. I went back to the basic, I got in touch with my clients and let them know that Vittorio was back.
I worked very hard in the past two years and I still working ahrd, but now I can see the light at the end of the tunnel, Don't get me wrong, it has been very hard. I reduce my expense by 68% in my business and 79% in my person side. For two years, I went bare bone, but it had to be done. I borrowed the money! I had to pay the debt.
To this date, I am still paying and I will be paying for about another 3 years, but that is OK, I feel great and I have taken the opportunity to learn that I am capable on doing a lot more than I thought I could ever do.
This is my story, but I know that people have different stories, let me know how you have gotten yourself out debt- or working on a plan. and if you require some help, feel free to call me or email
Posted by Vittorio Oliverio
on September 18, 2013