Debt...

Now that we've discussed what an empire is, let's chat about the first piece to designing your own.  This is usually a sore subject, but it must be addressed - debt.  Being in debt is the one way for an empire to fail.  Getting rid of the debt chains holding you back is not easy, but it can be fun and rewarding!

When I first moved to Pennsylvania I had almost $5,000 in credit card debt.  I knew in order to survive this had to disappear.  It would take me almost 18 months, but I stuck to the task at hand and accomplished it.  The key to making it vanish is to develop a plan and stick with it.  Below is a general step by step guide of what worked for me.  Hopefully it'll work wonders for your empire, too!

Step One: Organize your debt by the current interest rate.  Rank each one starting with the highest rate first going down to the lowest rate.

Step Two: Organize that same set of debt by the balance due.  Start with the highest at top and move to the lowest.  Some people have multiple credit cards with small balances on them.  I once had three separate cards with less than $500 on each.  Yet, I never paid them off and always paid the interest.

Step Three: If the balance on your lowest card is under $500 pay it off first.  Do whatever it takes to get it paid off.  This may seem silly, but it's very rewarding.  You'll be able to immediately see your progress in action.  Seeing the progress you're making will motivate you to continue on!

Step Four: Call each debt company (credit cards, auto, etc.) to ask for a lower interest rate.  Occasionally they will reduce your current rate based on the market.  This take a bit of time, but can save you big money.

Step Five: Lock your credit cards up if you have them.  Leave them at home, freeze them in water, put them in a safe, whatever it takes to not carry them with you.  I now keep mine in the safe and pull them out to travel.  There is no need to carry credit cards if you have revolving debt you're paying on.  Some people choose to cut their cards up, but I advise against this since companies may charge you to send a new card.

Now that you have a list of all your debts you can begin working on paying it off.  Designing Your Empire is useless if you have major debt.  Just remember to focus on the prize.  One thing I do to stay inspired is to keep pictures of my goal.  My life goal is to own a farm, so my computer & cellphone background is a barn.  Every time I think of unnecessary spending I remind myself that money could go toward my farm dream.