Back to the Black: Your Financial freedom day

On your phone there is a calendar.  Do you use it? You might like to think of doing so. Fast forward say 3 to 5 years. If you follow the Back to the Black plan you could be financially free in a few years time.

What is financial freedom?

Quite simply it is the time, in the future, when you have more money coming in than you need to live on. It really is possible.  Imagine sitting in your own home and it is paid for, every single brick belongs to you. Imagine getting into that comfortable car, smell the leather seats, enjoy the feel of the steering wheel. Imagine going out to a nice restaurant with that special person in your life and not worrying about the cost because you are financially free. I have that date written down, I am not going to share it publicly but I know it by heart and everyday I am working towards it, it is the day when my mortgage is paid off.

That is NOT the reality for most people but it could become the reality for you.  If you follow the 80:19:1 rule you can clear your debts easily. I know I have done it.  when I invented this system it was to clear my own debts. I have said before both in Back to the Black  that my spending was out of control.  I had to admit it, because that was the first stage in curing it.  If you cannot face up to your own reality, you cannot change it.  At the time I was a mathematics and ICT teacher. I used to buy computer magazines because ‘ you had to keep up to date’ and they cost £1500 per year. My wife asked  for a holiday and we couldn’t afford it because it was £1500.  Spot the dummy! Guess what I stopped buying the magazines and the next year we had a great holiday.  I didn’t need to work any harder, I just needed to sort out my finances and that is what i did.

Now, other than the mortgage, and we are working on that one,  we have no debt, zero, nilch, nada! Believe me that is a huge achievement and it happened in a few short years.  It meant shifting from the mindset that I had acquired in the 1980’s and that was ‘ spend next month’s salary before you get it’.   That is ‘old century ‘ thinking. We have to go back to the days before credit cards. We have to live a cash lifestyle. If you think I am wrong, then think again. It will take me longer than you to  acquire stuff but in the end I will have more stuff and it will all be paid for, not rented.  A lifestyle based on credit is a lifestyle based on spending other people’s money and that is a rented lifestyle and it is m MORE expensive.  That sort of lifestyle is not sustainable.

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