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How Your Confidence Affects Your Finances, Part Two

January 27, 2014 By MelissaB 14 Comments

For part one of this series, go here.

In our earlier post, we talked about how debt can seem insurmountable to some, as documented in the movie, Maxed Out. Unfortunately, some people feel their debt is so overwhelming that they take their own lives. That includes a college student who owed $12,000. While $12,000 is not a small sum, it’s not worth taking your life.

Debt and Your Self Worth

Our culture recognizes that many people identify their worth by their jobs. When we meet someone new and tell them what we do for a living, we say, “I am a teacher” or “I am an engineer.” We literally take on the identity of the job that we do.

What is not discussed is that we often measure our worth by our debt, also. If you’re in debt and struggling to make your monthly payments, it’s easy to feel worthless and hopeless. When my husband and I finally faced our nearly $57,000 in credit card and student loan debt, I felt embarrassed and stupid. After all, how did I let myself get in this position?

Your Thoughts Can Determine How Quickly You Can Get Out of Debt

Keep Calm Payoff Debt 2You may begin your debt pay off journey as I did–chiding myself and feeling like it was hopeless. How would I pay off this debt that was greater than our annual income? The whole process felt hopeless, and I wanted to give up before I even started.

But through our two year long journey thus far, I learned some things that make paying off debt easier.

  1. Be confident. When I stopped chiding myself and instead decided to encourage myself, the weight caused by debt was lifted. Instead of thinking, “I’m so stupid for being in this much debt,” I thought, “We’ve made mistakes financially, but now we’re on the right path. We’re making strides in our debt repayment plan, and eventually we’ll be out of debt.” This encouraging self-talk increased my confidence and reduced my anxiety. I felt empowered.
  2. Look at the little picture. Sometimes looking at the big picture–the total debt that you owe–can be overwhelming. Instead, focus on the smallest debt. If you put your extra money on the smallest debt, you’ll see progress more quickly. If you owe $60,000 but your smallest debt is $5,000, focus only on that one. Don’t look at your total debt load. You’ll feel elated as you watch your progress paying down the smallest debt.
  3. Celebrate small victories. Encourage yourself every step of the way. Praise yourself when you’re able to pay more off in a month than you typically can pay. Celebrate when you pay off one debt. Shout in your house that the debt is gone. Share it with your friends if they know of your debt struggle.

If you’re in debt, you can either hurt yourself mentally and physically by berating yourself and wallowing in self-pity. Or, you can heal yourself mentally and physically by praising and encouraging yourself through the long journey of paying down debt. Which would you rather do?

How do you encourage yourself when paying down debt?

MelissaB
MelissaB

Melissa is a writer and virtual assistant. She earned her Master’s from Southern Illinois University, and her Bachelor’s in English from the University of Michigan. When she’s not working, you can find her homeschooling her kids, reading a good book, or cooking. She resides in New York, where she loves the natural beauty of the area.

Filed Under: Debt Reduction, General Finance, Personal Finance Education, Saving, ShareMe Tagged With: confidence, Finance, Personal Finance

Comments

  1. Sher@knsfinancial.com says

    January 27, 2014 at 7:34 pm

    Great points Melissa, especially regarding our mindset! I DO feel stupid for getting into the debt I have, but beating myself up won’t get me out of it.

  2. Dave @ The New York Budget says

    January 27, 2014 at 9:13 pm

    A positive mindset is a powerful thing! Congrats on turning things around for yourself financially. You have a lot to be proud of!

  3. Chitown says

    January 30, 2014 at 11:51 am

    It’s really a great idea to just focus on the smallest debt vs. the entire amount because it does get overwhelming. I thank God every day that i am coming into my season where all of my debt is eliminated.

  4. Marissa@Financetriggers says

    February 11, 2014 at 6:17 am

    Being optimistic in business is very important. I do believe that confidence has big impact in the business. There were times that when I boost my confidence in investing my money doubles! That’s how helpful confidence in business.

Trackbacks

  1. Weekly Favorites, Gratitude, and Giveaways #132 | Budgeting In the Fun Stuff says:
    February 1, 2014 at 6:21 am

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  2. Weekly Favorites, Gratitude, and Giveaways #133 | Budgeting In the Fun Stuff says:
    February 8, 2014 at 12:14 pm

    […] Beating Broke with 5 Tips to Do More With Your Time  Yeah, I need quiet to really work.  I can only multitask with repetitive stuff. […]

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