 You can do it. What's up? Money Geeks. Mr. V here. Welcome to another video, guys. Into this video, I want to show you guys how you can set up to eliminate debt in 2020. And you can do this whole setup in just seven days. I'm going to walk you through steps that you can use to set up as you start your debt-free journey. So 2020 is here. Everybody's super excited. Again, people are looking at setting all these goals. But I want you to take an actionable goal. So I'm not just going to tell you to go do stuff, but I'm going to show you how you're supposed to do it, which is different. So this video is going to be a little bit longer because we're talking about practical steps here. We're going to walk through them every single step of the way. So there's seven days set up that we're going to go. So I'll show you what you're going to do day one, day two, through day seven. And by the end of day seven, you should have your full set up ready to go. And it's just be up to you to start executing. Again, setting up is one thing, executing is another. So I'm counting on you that once we go through this process and set this up, you're going to follow through, like you said, you're going to do your New Year resolution. I remember you saying you wanted to be debt-free. So you're going to follow through and execute this game plan. It's a step-by-step process. It's a course that's going to help you go through. And by the time you're done, like I said, you are ready to just start executing. A lot of people fail through the debt-free journey because they don't really have an actionable plan. All they have for the back of their mind is I want to be debt-free, but they don't really think about the intricacies or how things should work. So I took the liberty and put this seven day process for you. So if you want to do it every single day of the week, say Monday through Sunday and get it set up, it's totally up to you. If you want to take maybe every other day, but make sure that every day that you say you're going to do something on the list of seven days, you do that stuff. You get it taken care of. So again, this is going to be a long video. So guess what? Let's jump into it. All right. So here we go, guys. This is just kind of your setup to eliminate debt. And so most importantly, like I said, is for you to follow through with this. So in this setup, it takes seven days for individuals or if you have a partner, if you're in relationship or you're married, so it takes two people. And so it's going to take a little bit of conversation in between. So if you want to skip days and talk to your partner or, you know, your spouse about some of the things before you guys can get back on track with no setting up, that would be great. So let's jump right in. So day one, the first step in the process is for you to understand the why. Why do you want to be debt-free? Why are you looking to be to have financial freedom? So the things I want you to consider here for the most part is just understand your goals. So most importantly, grab a notebook and sit down or journal or something and sit down and write your key categories that are important to you. So when I say just writing the categories that are important to you, it's like, hey, financial, adventure, material things, intellectual. So going back to school, legacy. What do you want people to remember you as or about? What do you want to leave behind for your kids? So I want you to kind of understand those things as you get started. So first again, like I said, day one, just understand the purpose of why you are looking to eliminate debt. What's so important to you that you want to eliminate debt? So that should be at the back of your mind. So find a quiet place for individuals to sit there or for couples to sit there. And I want you to be very, very realistic. I don't want you to write down things that at the end of the day you're not going to be able to follow through. Think about the things that are really important in your life and write them down. Again, I have the full PDF. So at the end of the session, if you want to download it, I'll put the link in the description below so you can definitely go in and download it. So be realistic with yourself and write down these key areas where you think you want to make changes or you think that are important to you. All right, so let's jump to day two. So now that you've set up your, you know, your why you understand why you want to be debt-free or you guys understand in the case of a couple, you guys understand why you want to be debt-free. The next thing is to prioritize your goals. You've written down a bunch of things, right? Some of the things have really, really important meanings to you. Others are like, oh, those are nice to have. So you want to prioritize them. So that way you're working on the most important things. I don't want you to prioritize stuff and go work on some things that maybe you don't need them five, 10, 15, 20 years. But it's important things that you need right now that you don't have it. So once you create your priority list, it could be you as an individual creating that or you as a spouse and take into account how that impacts your spouse. So you have your priorities, your spouse might have some different priorities. So you guys need to sit down and talk about it. And then the best way to go about it is to create what I'll call your dream board. So you can create an individual dream board and then compare it if you have a spouse. So you go, your way, create your dream board, your spouse create the dream board and you guys get together and kind of compare notes per se. Look at each other dream board and just make sure that the things that are common between them have the same level of priorities. If not, you guys should definitely talk about it. So you can use pictures just to kind of give you that visual. That's an effective way. So it kind of brings the emotional side of the things that matter to you as someone you're doing your priority. So creating a dream board is a very powerful and fun process. So what you do is again, you get like a large piece of paper or poster. That's how you go about creating your dream board. Or just if you have a clean wall in your house that you're not using, you can definitely use that. So gather stuff like magazines and images of your dream vacation destination or adventure. Do you want to climb Mount Everest? You know, you want to go to Australia or to New Zealand for vacation or something like that. So you grab the images and then, you know, get a glue or maybe a staple. We have a board, but on your wall, I want you to staple. So grab glue or some stickers or tape and then perfectly glue or tape those pictures to the wall so that you can see them, put them in a place where you can actually see them. So again, this is how you would go about setting up your dream board. It's supposed to be for you and your spouse, not just you. If you are in a relationship, but if it's just an individual work, then this is all about you. So that is prioritizing and creating your dream board. Again, guys, I have the detailed notes that you can actually download on my website. I'll put the link in the description below for you guys. So that takes us to the three numbers. And this is the part where most people usually jump into when they're setting up their debt elimination strategy. They just jump into the numbers. The first two days, notice that we didn't talk about money or how much your expenses are. No, we didn't touch any of those. Our focus was for you to just understand the why and then just kind of prioritize things that matter to you. At that point, we haven't put any expenses yet. So now the three, let's start looking at numbers. So what I want you to do is make a list of all your debt. So from some $20 that you owe a coworker for lunch that they bought you to your mortgage. So everything that you owe somebody, I don't care if it's $5, write it down, make a list of all your debt and then be organized from the smallest to the largest. Again, like I said, if you owe a coworker $5 for lunch, that would be the very top down to your mortgage, which I think that's the largest expense that most people have, especially here in the United States, to you put that at the very bottom, then all the other things that come in between. I want you to list those down and really have that number and organize them in that way. Next to it, I want you to kind of just write a note of the minimum payments and due date. So when you take all the debt that you owe, how much minimum payments are you supposed to pay for that debt and what's the due date? You write that down so you have a visual of how, when and you're supposed to be making payment and you can really stay on top of it. Don't forget the money you borrow from friends too. So if you borrow money from friends and family, please don't forget that. Make sure that's included in this list of all your debt. So now this is just exciting to talk about numbers, right? You owe money. This is how much you owe. This is the minimum amount of payments you make and this is the due date for that money. So that would take us now to our very next step again, which is the B word. And the B word here doesn't stop for the B that we, most people talk about in rap music and all that stuff, but that's not the B word we're talking about here. The B word here is budget. So I want you now to start thinking about, if you don't already have, to create a realistic budget. So include necessities. I want you to include obligations. I want you to include kind of less than monthly expenses, you know, a few nice to have items. I want you to include everything or, you know, everything that you spent money on or the things that you plan on spending money on. I want you to include them in your budget. So the first step in developing your budget actually is to determine your total monthly household income after taxes, right? So if you understand how much you bring in after taxes, that is the first step. Your income now, in some cases may vary each month. So if you work as a contract tour or you are self-employing, you do, you know, contract work, that might differ, right? But I want you to take, like, the minimum average of that income. That would be realistic. So don't take the max, take, like, the minimum that you expect to bring home. So just use the very, very conservative number in this case. Even if you bring extra in, that's better than if you don't estimate properly. Now, I want you to take the next step of, you know, just determine your spending. So how do you spend that money each month? You know, and I want you to separate your expenses into four major categories, right? And this is something that a lot of people don't really talk about and this is unique. So the first category, what I'll call is your level one expenses. These are expenses like your house, your groceries, your utility bill, your gas bill, your internet. The things that keep you afloat, that keeps you moving. So those will be your level one expenses. The second will be your level two expenses. In this case, it would be kind of like your monthly commitments. Like you have a car that you have to make a payment. Your credit card, you have loans that you have to make payment on. Those are your level two expenses. So again, level one is your necessities and level two are the things that kind of make life a little bit simple for you. And then the next level of expenses I want you to break up is your level three expenses. And these are expenses that include some like car repair, like your clothing, insurance, all fall under this kind of, you know, expenses level three. So if you have like Christmas money, you start putting those, all that stuff would fall under level three. And then finally, your level four expenses, which are kind of nice to have, but not necessary for you to survive. Like if you go out to eat a restaurant, you treat yourself to a nice latte at a coffee shop, or you go out for a beer with some friends, take a vacation, or just a trip to the movies and stuff like that. So this is some of the level four expenses that you would kind of incur. So once you break down your expenses into those different categories, now that's the point where you can start looking at, okay, where are my bleeding money? What are my money drains? And that would take us to day five in this case. Now day five, that's where you start your planning, right? So I want you to start building up a plan. So make a plan to pay off your debt in either, let's say you want to pay it off in 12 months, or you want to pay it off in 18 months, or you want to pay it in 24 months, in 36 months, but definitely make up a plan. So divide your total from day three above that we talked about. So day three, which is you having all your debt, that's what you bring in. So at this point in day five, I want you to divide day three, which is the total debt by, let's say 12, which is the number of months in a year, to determine how much you'll need to allocate to debt each month to be debt free. Does that make sense? So you take all your total expenses, you divide them by, your total debt, excuse me, you take all your total debt, you divide them by 12, and that will tell you how much you have to allocate to debt to pay off that debt, let's say in 12 months. So that's a nice exercise that you can actually do to figure it. If it seems too hard, divide it by 18. So let's say you divide it by 12, it's like, man, I can't really do this. This is so hard for me. Okay, so next step is you divide it by 18. So it will be in 18 months. And if 18 still is not doable, try going by 24, and just figure it out to see if it's easy for you that way, and then you can actually see where it works. So that is creating a plan. And then next step here is the six I want you to get moving. I invite you to get moving is I want you to start doing some sort of exercise, you know, go for a walk and just kind of play your brain. Exercise is a great antidote for stress. So if you're stressed out about debt, start going out exercising. A cheaper way would be walk around the lakes, like here in the Midwest, we have a ton of lakes, so you go for walk around the lakes and for some people, you know, or you can go for a jog or whatever, it works better for you. But just get moving, make yourself comfortable, because like I said, exercise is really, really something that would help you eliminate a ton of stress. And finally, day seven, this is when I want you to kind of take a step back and relax, relax means like, hey, yes, you've set up this whole process to pay off your debt. You're starting to move, you're starting to exercise. Now, that means you have to relax. And by relaxing means you probably have to go to bed early. So start going to bed maybe 20 minutes earlier than you used to do, and see if you get enough sleep to reduce stress. If that doesn't work, go maybe 30, start going to bed 30 minutes earlier than before and see if you're getting enough sleep. Do that until you figure out that you have enough sleep that, you know, makes you feel comfortable. And remember, if we stress out, it impacts your entire life. So that's something that you want to make sure that you don't have it. Again, just a quick recap here. So we're talking about day one. I want you to understand the why, day two. I want you to prioritize day three. Stop the numbers, just kind of accumulative amount of debt that you have. Day four, create a budget to be worth day five. Stop planning and doing your math and no taking the amount of debt you have divided by the number of months to see how much you have to make payments every month to eliminate your debt. Day six, I want you to get moving exercise better. And they said I want you to relax, go to bed early, eliminate stress in your life. So there you go, guys. That is a boot camp. I mean, I know it was a really long video, but trust me, if you follow the steps as we've gone through and execute like you say you were going to do, you are ready to start tackling debt. The number one thing is first to change your mindset that I want to be debt free. Build that mentality like, hey, whatever it takes, that's what I'm going to do to be debt free and go with that process. And I hope this was really useful. Again, I apologize for this long video. There's no way I could really cram this kind of information in a really short video. I could have done it, but it would do you no service. If I took out some of the information, you really have to go through every single step. So again, if you know somebody that's going to benefit from something like this, or if you're debt free or you know people that might benefit from it, please share the video with folks that are studying the debt free journey. So this can definitely be a really good tool for them to to get started. And again, you know, I enjoy you sharing the video because that's how we help get the word out and grow the channel. And so I really, I really do appreciate you doing that for us. Finally, if you want to download the PDF that I showed you today that we walked through the seven day no debt free elimination guide. If you want to download that so you can follow that at your own pace, you know, or you can share with somebody in your family. I'm going to put a link in the description below. Just click on that link. It's going to take you to our website and just put your email address and that should be in your inbox the very next minute. So you can download it and share with people that would benefit from it as well. So I hope again, this was really informative to you. Give me a thumbs up if you really think this was good information. Like, share, subscribe. And as always, stay motivated.