321. Cultivating a Positive Mindset on Your Financial Journey

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In this episode of the Debt Free Dad podcast, host Katie shares her personal journey of overcoming over $200,000 in debt on a single income over six and a half years. She emphasizes the importance of maintaining a positive mindset when dealing with financial struggles and illustrates this with a thought-provoking story. Katie provides practical advice on recognizing small wins, staying motivated, and adopting perspectives that can transform your financial journey. Tune in for valuable tips on managing your money effectively and breaking free from living paycheck to paycheck. 

Transcript

Kati Hatfield: 0:00

When you experience something difficult, do you tend to have a positive or negative attitude? Do you pay attention to the way your mindset affects how you approach a problem? Do you think it impacts your process and the ultimate results? Stay tuned for ideas on how to keep a positive mindset while tackling your finances. Thank you for listening to the Debt-Free Dad podcast, where we help everyday people like you take control of their finances and live a happier, less stressful life. I'm Katie, your host for today's episode, and I've been on my journey to debt freedom for just over six and a half years and I've paid off over $200,000 in student loans, car loans, medical bills and credit card debt, all on a single income.

Kati Hatfield: 0:48

Have you ever seen this picture of two people riding a bus the same bus along a winding mountain road? They're each looking out their respective windows on opposite sides of the bus. One is looking out across the mountain range, enjoying a beautiful sunset over the peaks and valleys. They're smiling and holding up a camera to take photos of this magnificent view. The other person is looking at the dark rock wall that the bus seems to be clinging to as they make the treacherous journey up the mountainside. The steep wall is covered in jagged rocks and tree roots. The person looking out this window on this side of the bus looks nervous, stressed, scared. When the bus ride is over and each of these passengers is asked about their experience, do you think they're both going to give glowing five-star reviews and recommend that their friends take this journey? Probably the one that was looking out over the lovely scenery, right? Do you think the one that was facing the rock wall is trembling and thinking the best part of this trip is when it's over and I can get off this bus. If their friends asked if they'd recommend the bus tour, they're likely going to give them a pretty stern warning to skip this ride at all costs. It's terrible, they'll have no fun, they'll be stressed and scared. No, thank you. So even though both people were on the same bus, from the same starting point on the same road, from the same starting point on the same road, to the same destination, their experiences couldn't have been more different. Their viewpoints played a huge part in shaping their journeys. If they had looked around and saw other perspectives were an option. Maybe they would have made a move during the ride that that would have changed their entire outlook.

Kati Hatfield: 2:45

The same thing applies when you're on your path of paying off debt. If you think there's only one way that will work, but you're stressed and you're not seeing any positive changes in your finances, you're probably going to want to give up and never do that again. However, if you look around and see that other people are enjoying the process, would it pique your curiosity? Would you be interested in checking out their viewpoint? Would you see them smiling and wonder what are they doing differently? I want the results they're getting. If you can find the positive points in your journey as you get out of debt, even if it feels like small wins that extra $10 you put into savings or making dinner at home instead of going through the drive-thru these will keep you motivated and give you momentum to continue. This will lead to bigger wins, like paying off your smallest credit card, having your emergency fund fully funded and more credit card. Having your emergency fund fully funded and more You'll notice that you feel less stressed when paying bills. You might even look forward to it. Your friends and family might notice this change and get curious. What are you doing differently?

Kati Hatfield: 3:58

I know on my journey I always say this concept of getting out of debt is really easy, but putting in the work is probably the hardest thing I've ever done, but it's totally been worth it. Obviously, like I introduced at the beginning of the episode, I've paid off over $200,000 in debt by myself and yes, it's been a lot of work, but it's been a lot of work and I'm so grateful that I'm able. It was probably a lot of fun getting into that debt, although I don't remember everything that I spent money on my credit cards that got me into that big of a hole. But the more I've gotten debt paid off, the less stressed I am, the happier I am, and I had to keep a positive mindset or else I would have never gotten this far in the journey.

Kati Hatfield: 4:48

When someone is diagnosed with cancer, it's often thought that the power of positive thinking can actually benefit their recovery during treatment, and you can be positive and think positively without always feeling cheerful and optimistic. Without always feeling cheerful and optimistic. It just means recognizing some of the fears or negative possibilities that might arise during your cancer journey, and that is kind of like a cancer in our lives. Thinking positively can recognize the importance of hope, whatever your situation is. So no matter how big of a hole you've gotten yourself into with debt.

Kati Hatfield: 5:32

This is like a treatment for it, and getting out of that debt is going to improve your quality of life. It's going to give you a fighting spirit because this is hard work and you're going to get through it. We survive 100% of all our bad days, so let that be an encouragement to you on your journey as well. Every little win counts. It doesn't matter how small you think it is. It's a win. Take it and then, if you mess up, it's okay. Admit that you made a mistake and jump back in and do the work. You know what to do, so I would just highly recommend the way you look at things is going to make a huge impact on your debt journey. Until next time. Thanks for listening to the Debt-Free Dad podcast.

Brad Nelson: 6:26

If you're ready to break free from living paycheck to paycheck. You wanna reduce financial stress? You wanna build savings, finally pay off your debt for good, but again you're not sure where to get started. Don't worry, we've got you covered here. Simplified my Money is sent each Sunday to your email. It's your step-by-step roadmap to better financial control and you also learn easy to follow strategies to manage your money effectively. It's going to be stress-free money decisions. Of all the tools that we're going to give you, these are going to help you simplify your financial life with proven tips that actually work. You're also going to gain the tools and confidence to tackle your financial goals head on. You can sign up for Simplify my Money by clicking the link at the top of the show notes.