Did you know that having financial peace of mind is possible, even while in debt? Yup, you read that right. Most people believe they have to be debt-free before they can stop worrying about their finances, and I was one of them. However, that all changed when I started educating myself on finances, and I’m happy to share my findings with you.
Some of my clients come to me with the desire to be debt-free and build legacy wealth. They also come with the feeling of worry, stress, fear, and feelings of incapability when it comes to money and how to manage it. During my consultations, I inform clients that worrying about money because of debt is optional. You are in control of how you feel about money.
To avoid this feeling of concern toward finances, it takes becoming financial literate, establishing a financial blueprint, creating an emergency fund, and securing disability insurance. Being financially literate (which you can do through self-education) is important because you will be less worried and fearful about money if you understand how to manage it.
When you establish multiple streams of income (which is a must for financial peace and independence), the need to be financially literate will heighten because money will be flowing in from different directions. Along with this comes creating a step-by-step blueprint designed to get you out of debt and build wealth.
Caveat: you actually have to follow the plan for it to work. Also building a small emergency fund for a rainy day will help you get out of the rat race of living paycheck to paycheck. This will allow you to still be financially stable during an unforeseen circumstance. Lastly, the icing on the financial peace of mind cake?: Having disability insurance. This means that no matter what happens to you, you never have to worry about money.
A recent discussion in a group I am in revealed how crucial disability insurance is. The discussion was regarding transitioning careers; and it became clear that some had to transition or quit all together due to a medical illness or an accident rendering them disabled. The individuals who had disability insurance were very happy they had it because their money flow never skipped a beat. Despite the blow life has dealt them, money continued coming in. Unfortunately for their counterparts who did not invest in disability insurance, they were out of a job/career and money.
In order to prevent being out of work and out of money during an unfortunate circumstance, buy portable disability insurance. It is not very expensive (I got mine for a great deal on an online platform). Employee disability insurance is the bare minimum, but it’s always better to have a portable insurance in addition to what your employer provides so that you are always covered, even in between jobs. As a reminder, disability insurance is not to be confused with life insurance. Although they are both important, disability insurance is to be used by you while you are still alive, and life insurance is your gift to loved ones when you are gone.
So you see, financial peace is very attainable, even if you have debt. In summary, it’s about knowing how money works, creating a financial blueprint to follow, creating multiple streams of income, having a rainy day fund, and securing disability insurance. Why not give yourself the gift of financial peace? You deserve it.
*I help physicians get out of debt and live wealthy lives using the magic of personal finance, and multiple streams of income