When it comes to debt, “How do I stop borrowing money?” is a question I’m often asked.
Oftentimes, the people asking me that question carry the following hidden belief, “It (financial situation) will get better when the economy comes back eventually.”
But if you think you’ve had to borrow money during Covid, I’ve got news for you. You had financial challenges before the pandemic.
About household debt…
Before Covid 19, household debt was already at an all-time high. Now that we’re full swing into it, it has increased again. For example, the average Canadian now has $1.77 debt for every dollar of disposable income.
So if you think it’s gonna get better when the economy comes back eventually, it’s not. It’s not gonna eventually get better, but I’m gonna show you how you can make it better right now.
Let’s talk about the heart of money matters.
If you keep borrowing money, what is it that made it okay for you to go into debt in the first place?
If you’re like me in the past, you’ll probably say something like, “because I thought it would make my life better.” But how does accumulating debt … the anxiety, worry, and stress about it … how does it make life better? The answer is, it does not.
Let’s go a step further. Pretend the economy gets better and you paid down what you owed. Does that mean you don’t go back into it?
Developing our financial emotional intelligence allows us to get into the heart of our money matters, such as what makes us go into debt and how to resolve that issue. Ask yourself …
What is the emotional payoff of borrowing money?
An emotional payoff is something we forego with the hope of getting something else in return.
In the context of debt, we tend to go into debt with the hope of setting ourselves free at some point.
But how does crippling ourselves financially ever makes us free?
Here are a couple of answers:
- Could it be that we go into debt because we don’t emotionally understand how our feelings and emotional impact money?
- Could it be that we keep borrowing money because we don’t want to examine what makes it okay in our mind to give our freedom away?
- Maybe it’s something else all together?
One advantage of developing our Financial Emotional Intelligence (#FEQ) is that we stop going into debt because we get going into debt was never the way to set ourselves free. Being financially emotionally intelligent is the way. I have plenty of FEQ resources at https://financialeq.coach/products
Let me show you. Book a call at https://financialeq.coach/contact-us