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Financial Triage – Stop the Bleeding

by danne

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A few days ago, I shared publicly that my husband and I have $3.4 Million dollars in debt from a failed family farm business. I’ve started a YouTube Channel and Podcast to begin documenting the process of how we overcome the challenge of paying off the huge debt and once again building our net worth.

I’m calling the channel and podcast 8-Figure Comeback because that’s how much I’ll need to net in order to pay off the debt and build a $6.6 Million positive net worth.

My first step was to own my shit out loud, to stop living in the “shame shadow” of it and to get some serious accountability going. By telling you, and by documenting what I’m doing, I’m now accountable to taking action in a big way.

My second step was to Declare my Intention – I’m going to build our net worth from negative $3.4 Million, where it is right now, to positive $6.6 Million.

Our next step was and is to stop the hemorrhaging. We have and continue to cancel ongoing subscriptions and fees for things we don’t absolutely have to have. We examined all of our AutoPays, which let me tell you, can add up over time. My new saying about this is that we all AutoPay attention to what we’ve got set up on AutoPay. It’s so convenient now to set things up to automatically come out of our account that we can forget that all of those automatic things add up, and we don’t always remember to cancel them when we stop using the service. So we got rid of every service that we weren’t using to its full potential.

We’ve sold and continue to sell anything and everything that we don’t absolutely need going forward. We’ve liquidated millions of dollars of assets, from combines that cost us a half-million dollars, to electronic equipment that cost us $100.

There are a few exceptions to this. We’re hanging on to a few beloved things that would break our spirit to get rid of. For example, a few years ago when things were going well financially, my husband finally bought a ZR1 Corvette that he’d been dying to own for a couple of decades.

Since our business went under, he’s thought about selling it, mostly I think because he feels guilty about the business failure and doesn’t think he deserves to keep it, but I keep talking him out of selling it. Partly because I think it would break his heart, partly because I think he does deserve to keep it, and partly because if I follow through with my intentions and my plan, it won’t be necessary to sell it. At the moment, we’re not in default on any debt, and I plan to keep it that way until we’ve achieved our 8-Figure Comeback.

Like getting rid of unwanted weight on your body, this “purging” of stuff has had a double effect of not only lowering our expenses, but also freeing up mental energy to make room for what’s next. If you’ve ever cleaned out a closet, you know exactly what I’m talking about. Getting rid of things you don’t need anyway has the amazing effect of freeing up your brain to work on the next solution, the next step.

That’s it for today. We’re cancelling services and selling stuff we don’t absolutely need.

So my question for you – what clutter could you get rid of right now in your life that would free you up – financially and mentally – to focus on your next chapter?

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