Get Out Of Debt AND Save Money

"We're not saving enough for retirement" "Boomers Unprepared".  This is the topic of just about every article on financial planning I've read in the last week. Every time I turn on the news or open a newspaper or magazine there is some article talking about savings rates, or debt rates or whether it's better to save than to invest.

"Lower Expectations" is the Wrong Advice

The ones that really get me wound up are the ones that tell the reader or listener that they need to lower their expectations for retirement because they aren't saving enough. Ugggh!! It's all bordering on financial malpractice as far as I can tell.

The Importance of Income

First, what does it take to retire? Must you rely solely on savings? What if you have money coming into your household to pay for the lifestyle you desire to live?  Any lifestyle - whether you are working or not - takes income of course, and when you have income coming in from sources that don't require you to go to work to earn them, then you would be financially independent - not retired.

Hold On Tight To Your Dreams

Second, if you give up on your dreams, you die - yes die. Many studies have demonstrated the power of goals, so why on earth are the "experts" telling people to reduce their expectations and "get real"? How about showing people what they can do to reach their goals? Why not give them some options? If people continue to hear they can't have this or they shouldn't do that, then who is the winner? No one.

This is the problem: too many people have been told for too long that they can't do things or they better not because it's risky so they don't even try.  Instead, they settle for mediocrity and then look to the government or the banks to help them out because they still feel they are entitled to their life of financial freedoms.

From Dream to Action

It takes a dream to inspire someone to action, and action to make a dream come true (financially speaking). You have to use all your resources (financial and otherwise) by taking your existing income and using it to create wealth, which creates more income which creates more wealth and so on and so on.

Saving money, for most people, is not as strong an incentive as the immediate gratification that helps them feel better in the moment. If you are being told you can't have something, or maybe you should lower your expectations, then it's even more likely that you will want to enjoy the short-term rewards from spending money on something you want today.

The Power of a Complete Plan

The answer to how to get out of debt and save money at the same time is really quite simple when you consider the emotion and psychology of goals and immediate gratification. The answer is not to look at getting out of debt at all, and not to look at saving money at all. The answer is to look at creating income. I'm not talking about income that comes from a second or third job, but income that comes from setting powerful personal lifestyle goals and surveying all your available assets, then implementing some systems to build a foundation where your current resources are working to create income. It's the power of a sequence and the power of having a full plan, not just several pieces of the picture taken independently.

To effectively answer the debt / savings question, you need to have a whole plan that starts with what income you want to live the life you want - then never ever, ever give up on that dream.

Money expert Tracy Piercy is a CFP & founder of MoneyMinding Makeover System. To learn more and recieve the Free 7-Day Financial Makeover visit here. T