How could you possibly talk yourself out of debt? Could getting out of debt really be that easy?
Well no, it’s not actually.
It’s not as easy as just talking to yourself in the right way. There has to be action.
Even the bible says “In all toil there is profit, but mere talk tends only to poverty”- Proverbs 14:23
Use The Right Kind of Self Talk
But the right kind of talk can get you into the right mindset to get out of debt, or even avoid new debt.
When you’re using credit cards, loans, and such to pay for things, it’s easy to use destructive self talk scripts like these examples (I’ve been known to use these in the past):
- I deserve it
- You’ve had a tough day, this will make it better
- Everyone else has one
- It’s on sale!
- There’s only one left, It will be gone if I don’t buy it now
But if you actively take steps to counteract these scripts that are so easy to believe, you can start changing your mindset about debt and how you spend money.
Fight Back Using New Scripts
All you have to do is to learn to catch yourself red handed when using the kind of self talk that leads to spending too much, and fight back using new scripts that allow you to change your old habits into ones that are healthier and wiser.
Here are some new scripts you can use:
Old Script: “Go ahead, you deserve it!”
New Script: “You work hard for your money, do you have enough cash to buy this without feeling guilty?”
There’s nothing wrong with occasionally rewarding yourself. But if it’s going to add to a pile of debt that’s already a source of stress in your life, all you’re really doing is adding more stress. And the circle continues
Old Script: “You’ve had a tough day, this will make it better!”
New Script: “There is a better way to wipe away a bad day”
Buying something you like CAN make you feel better, but it’s a very short term lift. Much like a mood altering drug, it makes you feel better temporarily, then you want to come back for more.
Find a healthy way to deal with a bad day, such as exercise, yoga, prayer, or reading a good book.
Old Script: “Everyone else has it”
New Script: “I can have one too, but I’ll save up for it first”
As human beings, we’re geared to fit in. It’s just the way our brains work. But spending more than you have to buy the new Lexus or your 3rd Ipad in 2 years ultimately causes you to lose financially.
Trying to satisfy your need to fit in at the expense of your finances can rob you of your future.
Old Script: “It’s on sale!”
New Script: “Do I really need this? Was I planning on buying this?”
So many purchases happen because the store puts a sale price on an item to entice you. Never mind that you actually went to the store to buy something else.
And if you pay with a credit card, you’ll probably end up paying more than the regular price once you figure in interest and fees. You might be paying for that item for months or years to come.
Plan your spending using a budget, and only buy what you planned before you came to the store.
Old Script: “There’s only one left, if I don’t buy it now, it’ll be gone”
New Script: “I’ll be able to find another one when I have the cash to pay for it”
It’s so easy to talk yourself into a scarcity mentality.
This is America dadgummit!
If you can find one of something, you can always find more if you look in the right place (Amazon, Ebay, etc.).
Don’t talk yourself into buying something on credit because you think you won’t find another one.
Develop a mentality of abundance and realize that you will always be able to find what you need at the right time.
Revolutionize Your Finances!
Learning to develop new scripts for self talk will revolutionize your financial life! When you’re able to effectively counteract those thoughts that keep you from succeeding financially, you’ll be able to change your mindset and your money habits permanently.
Learn More…
If you’d like to learn more, you may want to check out my online get out of debt course that will show you everything you need to know to change your habits and get out of debt.
Question: Do you have any self talk habits that keep you in debt and keep you from succeeding? Leave a comment and tell me about it
Resources:
Creating a Get Out of Debt Mindset
Don’t Let Money Leaks Ruin Your Financial Foundation
Paralyzed With Fear Because You’re In Debt?
Eliminate Debt Forever by Telling Yourself a Different Story
One thing that has helped me in getting myself into the right mindset in these discussions is the opportunity cost. I could buy X but if I use the money to buy that then I lose the opportunity to put the money in my son’s college fund or my IRA or the vacation I want to take, etc. Understanding that I have limited resources helps me prioritize what I buy.
Of course, I understand most people operate more like our government and spend what they want and then just “print more money” i.e. throw it on the credit card. Party today and worry about how to pay for it tomorrow.
When I am teaching personal finance, the whole opportunity cost idea is one that I try to get people to understand. You can buy what you want, but when you do so you lose the opportunity to do other things with that money. It’s a choice you need to make, but you need to consider the implications.
You’re right, if more people could realize that the money they spend on needless things could actually go into a bank account for later, or better yet grow exponentially in investments, it would change their life!
Although I teach people how to think with an abundance mindset when it comes to money, I also teach that you don’t waste what you have. Money is a tool that has to be used wisely and efficiently if you want it to work well for you, and knowing about opportunity cost is part of the equation.
"Get out of here Debt! Leave me alone! Back to your hole!" lol Seriously, I’m a big believer in affirmation and mindsets. The right type of self talk can get you out of back situations.
Yeah, if you don’t have your mind right, how can you expect to accomplish anything. Once you get that right, then the right actions will follow.
This is excellent. It’s always about your mentality and what you’re able to convince yourself of. It makes me think that buzz words in your thought process like ‘deserve’ or ‘need’ should be automatically followed up with clarifying questions. Again, great post really helpful.
I think following up with those questions is a great idea when you catch yourself thinking like that. It helps you understand what your motives are and gives you a chance to fight those thoughts with better scripts that make more sense.
Great post, Jason. We’ve taught ourselves, when facing one of these bad scripts, to remind ourselves that we deserve financial freedom more that we deserve the short-term satisfaction of a purchase that we don’t necessarily need or want. It’s worked pretty well so far.
You can’t sacrifice the long term vision for a short term want. I think most people just do it unconsciously because they really don’t have a long term vision. People like you and Travis (and spouses) obviously have a plan and are not willing to compromise. Way to go guys!
I really like the one regarding "It’s On sale!" The words of mother echo in my head whenever I hear those words – she said, "It’s not a sale if it makes you buy something you weren’t going to buy anyway." Smart woman. 🙂
Definitely sounds like a smart lady. I think we’ve all been guilty of the "it’s on sale" excuse at one time or another.