Why #NDBSTPCF Should Be Your Big Financial Goal – and How to Get There – #TomFerryShow

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Does your financial picture live up to the #NDBSTPCF standard?

Oh, what… You’re not sure because you don’t know what it stands for?

Okay, I’ve kept you wondering long enough…

Here’s what it means:

  • No Debt
  • Big Savings
  • Taxes Paid
  • Cash Flow

Sounds like a pretty amazing financial future, right?

I want to you to get there, and I’ve got four steps that will help you do just that.

But before we get to those tactics, there’s one thing to do first…

 

Figure Out Why This is a Must

The only way you’re going to make the sacrifices needed to achieve #NDBSTPCF is if you get really serious about why it’s a non-negotiable “must” for you.

You can’t pursue this halfheartedly.

You’re either all-in or don’t bother.

So here’s what I suggest you do…

Create a list of 20 reasons why this is so important to you.

Not five. Not 10. Twenty!

Why 20? Because it takes that many to get past the superficial, cliché reasons and actually dig deep to find the real motivation inside you.

Now let’s move on to step one…

 

#NDBSTPCF Step 1: Debt Analysis

I want to make this clear: When I say debt, I’m not talking about your mortgage and other real estate “smart” debt.

I’m talking about dumb debt like 19% interest rate credit cards that feel like a constant burden on your back.

Schedule some time to take stock and create awareness around all your credit cards and high-interest loans, etc.

The ideal next step would then be to consolidate all of that debt into a better rate, and then set your intentions to eliminate it. Consolidation may not be possible for all, however. In which case…

The alternative to debt consolidation is prioritizing your cards by worst rate to best and start paying them off in that order. Make sure you put these figures “up and visual” somewhere you’ll see them and think about them on a daily basis.

When my wife, Kathy, and I did this many years ago, we had it all written on our bathroom mirror. Every day was an unavoidable reminder of our goal, and sure enough it provided a consistent focus for us and we paid them all off!

 

#NDBSTPCF Step 2: Reset Your Household Budget

How many times have you purchased something you don’t really need or maybe even want… just because it feels good to buy something?

We’ve all done it.

But it’s killing our finances.

It’s time to stop making stupid, emotional decisions with cash.

It’s okay to eat dinner at home. It’s okay to wait another year for that new car. It’s okay to wear the clothes you have instead of new outfits all the time.

If you’re serious about achieving #NDBSTPCF, you need to reset your budget and stick to it.

 

Tom Ferry - Success Summit

 

#NDBSTPCF Step 3: Find a Great Tax Pro

No one wants to pay taxes. But everyone has to.

So in my view, the more part of everyday life you can make the process, the less painful it becomes.

Too many solo entrepreneurs don’t think about taxes when they get a paycheck. And then come April the following year, they’re in for a huge shock when they realize how much they owe because they haven’t been paying as they earn.

Am I talking to you?

So do me a favor… Stop letting your aunt or uncle do your taxes and find someone who’s great, who’s up on the laws and will coach, manage and push you to be more responsible.

You may also consider:

  • Forming a corporation if you haven’t already
  • Setting up quarterly tax payments
  • Setting up separate accounts and deposting 35-45% of every check into your tax account

 

#NDBSTPCF Step 4: Start Investing When You’re Set Up for It

The “cash flow” element of #NDBSTPCF is admittedly the trickiest part.

Primarily because you need to have these first three steps nailed down before it’s wise to start investing in rental properties.

So be smart. Be disciplined. Get rid of your debt.

And then start saving, big time. Do NOT make the mistake of buying with the minimum down payment, or you may quickly find yourself stretched too thin.

Save like crazy and invest it in quality properties that can start creating cash flow on a monthly basis.

Then, rinse and repeat.

All of the above should mention that I am not a financial advisor and you should seek the assistance of one before making any investments. I’m simply sharing my own real-world experience to help you become debt free, grow your savings, pay your taxes and generate cash flow!

Go create your #NDBSTPCF life!



 

 

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