So, I used to have a lot of debt relative to my annual income. 

When I added it all up for the first time, it was way worse than I thought.

But the unexpected thing was, as hard as it was to swallow the jagged truth that I’d buried myself deeper than I’d thought, the newfound clarity was exhilarating.

I used that energy (with a few key strategies I’m about to share with you) to pay that debt off faster than I expected, plus double my savings and triple my income within 6 months.

So if you’ve got debt that feels heavy, if debt completely freaks you out and you contort yourself to avoid it, or if you simply wanna be smarter with using the financial tools at your disposal, I’ve got a refreshing and unusual 5-part perspective on debt (and money in general) that’s gonna save your emotional energy and help you make more money.

So here’s my 5-part refreshing and unexpected perspective on debt:

1. Debt isn’t bad.

Money is neutral. Therefore, debt is neutral. What matters is the story we’re telling ourselves about debt, or the way we’re relating to it. 

If we’re beating ourselves up, shaming ourselves, and blaming ourselves, we’re adding an unnecessary heaviness to the situation that just stagnates us even more.

Debt is simply an invoice for a blessing you’ve already received.

2. Debt is a tool.

A lot of money experts tell us debt is terrible and should be avoided no matter what.

But the wealthiest folks know that’s not true. So do banks.

Our entire banking system is based on the banks using debt to make more money. They borrow money at one lower rate and lend it out to make a higher rate. The difference is called the spread.

Debt can be an incredible tool to make more money when you use the right kind.

3. There’s more than one kind of debt.

There’s consumer debt (like when you buy shoes and carry the balance on your credit card) and then there’s investment debt (like when you take out a loan to buy a commercial property that you’re going to charge rent for.)

Consumer debt costs you money. Investment debt makes you money.

There’s some grey areas here so we each have to decide for ourselves (and get really honest) when we spend money that we don’t have sitting in cash in the bank if we’re doing it as an investment with a clear ROI or if we’re doing it for some other reason.

4. Your debt (or lack thereof) says nothing about your value as a person.

I thought my debt meant I was a f*ck up. That perspective kept me in consumer debt longer than was necessary. Once I realized my debt was just a reflection of decisions I’d made and not part of who I was, the energy saved was tremendous!

Having debt doesn’t make you a bad person. Not having debt doesn’t make you a good person.

Your debt status has nothing to do with your inherent value as a human being.

5. Money situations can change. Fast. And often do.

When you change the story you’re telling about your money, your money situation tends to change. Often fast.

I know people who were bankrupt with hundreds of thousands in debt a few years ago who are now making millions of dollars a year.

There are so many people who started their businesses way after me who make way more money.

Time isn’t usually the biggest factor when it comes to financial transformation.

Our relationship with money is.

When you change the way you’re relating to money, your money reality changes.

And it changes for the long-haul so you don’t have to come back and relearn the same lesson 800 million times.

Here’s to dropping the stories we’re telling ourselves that aren’t doing us any favors and writing new ones 😘.

Love,

Kate