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childhood friends of mine recently asked me for advice on getting out of debt. One particular friend said that he had
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$40,000 worth of debt. The advice I'm hearing from you is essentially you have to make
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a concession. You have to pull back your spending and get things back under control. You have to I know sell your
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house. >> Here's some good news. Your friend, he's carrying $40,000 in debt, right? My
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advice would be I would look at all my debts and I would pick the one that was charging me the highest interest rate.
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I'd pay the minimums on all the others and I would focus on paying that one down as fast as I could because that's
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the biggest return on my investment. And when that one was gone, I'd go to the
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second until I worked my way through. It's going to be hard. And the more quickly you do it, the harder it's going
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to be cuz you're going to have to make more dramatic adjustments to your life.
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That's the bad news. Here's the good news is once you are out of debt, if you
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do this, you've developed a wonderful discipline of living on less than you earn and diverting the excess to
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something else that you want more. In this case, to something else you want more is being out of debt. If you
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continue with that discipline, you now have the cash flow to begin building those assets and becoming wealthy.
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You've already developed that lifestyle and that discipline. So that's the one
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ray of sunshine, if you will, in in the process of getting out of debt.