Mention the word downsizing and what usually comes to mind are negative images of job loss and financial deprivation. But downsizing can be viewed another way--as a carefully structured plan to reduce and even eliminate your debt.
There's no special secret to achieving effective debt reduction, but there is a path you should follow. As a financial counselor, I guide my clients in moving beyond practical skills, like checkbook balancing and budgeting, to exploring the emotional and spiritual traits that subconsciously affect their spending habits. Identifying and understanding your belief systems and attitudes about money and the core issues of why you create so much debt are essential to putting a successful debt-reduction plan in place.
I recall one client who had purchased a fur coat she could ill afford. At the time of her "retail therapy," she was angry and depressed because her husband was out of town on their wedding anniversary. After reviewing her spending patterns and leveling with herself, she finally acknowledged that many of her impulse-shopping binges were efforts to make herself feel better about voids caused by unmet emotional needs.
If you're tired of being overwhelmed by debt, living from paycheck to paycheck and wondering why you can't get ahead, there is a way out. When practiced consistently, these five simple steps are guaranteed to bring down the size of your debt.
THINK HOLISTICALLY If you want to change your spending patterns, you'll have to change your thought patterns. * Work on developing a more positive belief system about money. Because our beliefs are typically formed in childhood, we tend to either emulate or go 180 degrees from what we have seen, heard or absorbed from family members, friends and others close to us. What childhood experiences regarding money are you re-creating as an adult? What effects are they having on your current financial life? For instance, if you were raised with the message "Money is the root of all evil," you could subconsciously believe that money is bad. This could explain why you quickly get rid of money by spending it or giving it away.
Or you may believe "I just don't understand money," when in fact, it's high finance that you don't understand. Join the club! To better understand your finances, you don't need a Ph.D. in economics. Some simple arithmetic will do. Get clear about how much money comes in and goes out monthly. Balance that checkbook. These very basic measures can help keep you "in the light" about your money and make you feel more financially empowered. *
Boost your self-esteem. The way we handle money is a direct reflection of how we feel about ourselves. Dr. Brenda Wade, a San Francisco psychologist, recalls working with a millionaire client who wouldn't pay her Neiman Marcus bill. This particular woman's inner critic was constantly telling her that she wasn't good enough, smart enough or successful enough. Her sense of self-worth was so low that she always found ways to sabotage herself. One way was by not paying her bills, which created unnecessary drama and chaos in her life. For women who chronically need to raise their selfesteem, Wade suggests sitting quietly and affirming to yourself I am enough. I have enough. I know enough. I do enough. Repetition is a powerful way to reprogram your subconscious to accept these ideas as reality. *
Develop a prosperity consciousness. Meditate on positive affirmations that can help you envision a life of abundance, such as: All my wants and needs are met, because God is my source or I deserve the best that life has to offer. Visualize prosperity and success. Use your imagination to see your life as you would like it to be. Hold the vision of yourself being surrounded by loving, supportive and nurturing family and friends. See yourself living in your dream home and having an emergency savings account that will tide you over in case of need. Let your imagination expand as you consider all your heart's desires and see yourself with all your needs and wants met.
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