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Full Transcript:
[The following is the full transcript of this episode of Joey’s Performance Tune Up With Joey Klein. Please note that this episode, like all episodes, features Joey speaking unscripted and unedited. This video is captured in one take.]
So many people today wake up to, how am I going to get out of all of this debt? I'm never going to get rid of all my debt. And it causes a tremendous amount of fear and anxiety and overwhelm. And a lot of people also feel like it's a personal representation of who they are, like they are a failure or they're unworthy or insignificant because they have accumulated a good amount of debt.
So if you find yourself in that cycle, please understand that in many ways it's not your fault. Because nobody receives the most important education when they go through school today, which is financial education. We learn about how to memorize stats and you learn math and you learn English and maybe a little history and things of this nature, but you don't actually study finance, you don't study money.
And how do you manage it and how do you build it? How do you grow wealth, which in my opinion is one of the most important skills to have in reality to producing the life that you want. And so if you have debt, it's not a personal representation of your flaws.
It's just a reality of like, oh, I lack some skills. And so first and foremost, we've got to understand that that debt is not a representation of you or who you are. It just means, oh, I don't. I don't have some skills that I could build if I want. So if you want to build those skills, you know, you can absolutely do that.
And it starts with, you know, understanding that if we oversimplify it, you know, debt is a byproduct of spending more than we make, right? It's like, hey, I make X amount of money every month and, you know, X amount plus whatever is going out each month.
And so it's like, it's a management reality, first and foremost. So, you know, I've got to understand how do I manage the money that I'm making? And so oftentimes we don't realize it, but we are making unconscious purchases that's motivated by psychology.
And it's getting us into purchasing things that we often don't need or require and keeping us from the things that we really, really want to have. And so the first step is not to focus on debt at all, even if you have debt, but let's start focusing on the reality that, that you want to build, what is the life that you want to live and what is money's role with that life?
How much money does one maybe need to make in order to live that life? And then from there it's like, let's start developing some financial skills that are going to give us the ability to create the kind of wealth that we want to create and, you know, eliminate debt along the way.
And so, you know, if you're in a habit of pay my debt off as quickly as possible, you're already in this cycle of probably producing more debt by way of focusing on debt itself. A much more effective way to get out of debt is, number one, let's focus on the life that you want to live.
What is the vision of life you want to create? And then we need to start focusing on how do we produce more value in people's life, how do we serve at a greater capacity than we are, and then make sure we have the mechanism set up that compensation can happen through that value and that service that we offer and increase our income from there.
As we focus on increasing our income and the life we want to live, we need to manage money well. And part of managing money well is sure, have a plan to pay off debt. But even more important is what is my plan to make sure that the amount of money that comes in every month, less goes out every month.
Like just that basic, simple. That basic premise can be intricate, but it's the first thing to master if we're going to build real wealth. Like, hey, the money coming in, I'm going to make sure more isn't going out than comes in every month. And there's so many different simple systems that can be leveraged to help build those skills in that reality.
But it all starts with the psychology of things. Because if I have a debt psychology that's driving my emotions and my mind and my behavior, then I'm always going to be in debt. And so I have to change my psychology. I have to change the way I'm interacting with money, the way I think about money and what's driving my actions around purchasing.
And if we can do that, then we're going to set ourselves up to create a very different future than the one in which you have had in your past. And so just understand that wherever you are right now, no matter what age you are, no matter how much debt you have, your current reality does not have to be your future reality as it pertains to money and wealth.
I've seen people transform their life at every age, at every income level, and create the realities in which they aspire to. And it all starts with the commitment to make the change, getting clear on the life that you aspire to, start putting energy and focus in that direction, as opposed to constantly obsessing about the debts that's there.
And then of course, we have to make sure we have a practical plan to manage the debt. But even if we have a practical plan and we don't tend our psychology around money, we're not going to be able to produce the outcomes that we're looking for even if we knew what to do. And so, you know, comment below if you want to understand how to manage your psychology relative to building wealth, and I'll make sure somebody reaches out soon.