Why Debt Could Be Keeping You From Being Retirement Ready

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You're paying extra on your debt. You're trying to be responsible, and you're making progress. But every once in a while, you find yourself adding to that debt again. And every time you do, the pressure just gets a little heavier because you're not just thinking about the debt anymore, you're thinking about what does this mean for retirement? But here's what I want you to consider. The debt itself may not be the problem that's keeping you from being retirement-ready. The bigger problem may be why you keep needing the debt in the first place, and that's what we're uncovering in this episode, is to help you understand where is the debt coming from and how can I actually solve it, and this matters because you're 10, 15, or even 20 years from retirement, and you don't have unlimited time to keep repeating this cycle. If you're consistently using your future income to pay for today's expenses, you're going to have to pull from savings or put unexpected expenses on a credit card. That affects more than your current cash flow. It can affect how much you're able to save, how quickly you can eliminate debt, and ultimately the choices that you could have when you get to retirement. But I don't want you to hear that and think, "Oh, great, another reason I should feel bad about my money," because that's not the point, we need to solve the problem underneath that cycle, underneath needing that debt now before it becomes a bigger retirement problem later. So debt isn't necessarily the problem, and I want you to think about your situation right now if you feel like this is you. I want you to think about your debt is information. When you realize you're adding to your debt occasionally, even though you're making extra payments, this is where I want you to stop and get curious and start asking yours- yourself some questions, not just think, "Oh, I'm horrible with money. I'll never be good with money," I want you to stop and ask, "What keeps causing me to need the debt?" I want you to think through, are you overspending? Are you not prepared for those one-time expenses? Are you spending everything that comes in and leaving no margin, no savings? Are you using credit cards for emergencies that aren't really emergencies? Is your budget based on what you wished your spending looked like rather than what your life truly costs? And this is why in coaching clients, I start with phase one, your money reality. Because before I can help you create a plan for the future and how to get there, we both need to understand what is actually happening with your money today, what is working, what isn't working, 'cause it's not a complete overhaul, and if things are working, we're gonna leave them. But if you're ready to more clearly see where your money is going today, you're going to want to schedule a money clarity call, essentially a where's my money going session on this call, I'll help you see exactly where your money is going, where it's getting stuck, and how that relates to you paving a clearer path to retirement So talking about that debt cycle, that debt pattern. I pay it off, have to add some more, keep paying it, paying extra, there's three reasons that this pattern matters for retirement. Number one, debt competes with your future money. Every dollar that has to go toward cleaning up yesterday's spending is a dollar that can't be used for today's excitement and enjoyment or tomorrow's retirement savings, it puts it as a competing. You've heard that phrase, "Should I save or pay off debt?" That's because debt is in a competing position, and so if you find yourself in this cycle, we've got to understand how we can solve it. And the bigger reason number two reason, the pattern is not going to automatically disappear when you retire, so thinking, "Ah, I'll just wait till I retire," it's going to still be there. 99.9% sure it's still going to be there. And here's something I want you to think about. If your current lifestyle requires you to occasionally use debt your credit cards, to make the numbers work, simply retiring doesn't make that problem disappear. Your ability to solve it in retirement may become more difficult because you have that fixed retirement income, so don't let it pass on to retirement. Reason number three this matters: you need to know how much you're really spending today before you can determine how much you will need in retirement. You can't create a realistic retirement income target the estimated retirement number, if you don't understand what your life truly costs today. That's why getting control of your monthly cash flow understanding your expenses, isn't separate from retirement planning. It is the, the big part of becoming retirement ready. So I wanna share about my client, Client K we are gonna call her. She felt overwhelmed by too much debt, she was paying it down. She said, "It's going too slowly, and I find myself adding to it on occasion." So with this pressure, with this struggle, she was cutting back on things she enjoyed, the money that she truly could spend, and she had got rid of, they were no longer doing the weekend getaways with each other, with her spouse. She was missing those. And at first, she thought the problem was simply that she had too much debt. But when we began phase one, Your Money Reality, we discovered something different. She wasn't an irresponsible spender, and I knew that. 99.9% sure, all of my clients having this problem, they're not irresponsible, she just didn't have a system set up for those expenses that she w- knew were going to happen, she knows about them. They're not every month, and so when they show up, it felt very unexpected. And because there wasn't money set aside for it, the credit card became the solution. She'd pay the card down, another expense would come up, and she'd be right back in the cycle. So after, the clarity and the Your Money Reality, the goal wasn't to pay off the debt faster. She was already doing an amazing job of that. It was addressing what was causing her to continue to use that credit card and continue to add to that balance, which would never get paid off, so I helped her build a system to keep her organized and have that money ready for when those expenses showed up. And now, while she still wants the debt gone, she is no longer living with that constant stress. She has actually brought back in the weekend getaways. She knows where she can spend her money because she has all of the other money set aside, and money for retirement, and the money to pay down debt, and it's all working together because of the system And this is why I want you to think differently about debt as you look toward retirement. The goal isn't simply to wake up one day and have a zero balance, although it's nice. The goal is to create a money system that allows you to live your life without borrowing from your future, that actually has you living, quote, "within your means," which I know a lot of people don't like, but that is how you're going to avoid debt. And this is what re- retirement readiness really requires, that you need to know what your life costs. You need to have a plan for the expenses that are coming up, and you need to be able to direct your money intentionally, you've heard me talk about enjoy now and plan for later. That is what you need to do intentionally so that you're enjoying both ends of your money system of your money goal. And the sooner you build those habits and systems, the more options you're going to give yourself later, and we love options, now you might be listening and thinking, "Okay, but maybe I really am an overspender." And I'll say yes, that's something worth looking at. So if that is you, listen to episode 182 with my guest, Marianne Stenquist. We talked about how to know if you're an overspender. I'll link that episode in the show notes so you can find it easy. And after you listen to it, if overspending doesn't sound like your situation, and maybe that's you right now, you're like, "No, I'm not an overspender," then I want you to look at something else. The one-time expenses that you typically call surprise expenses, or that's how you react when they show up. You're like, "Oh, man, I forgot that was showing up. Oh, yes, that always comes up, too. Oh, gosh, that... It's been three months. I've got to pay for that," how often are these types of things coming up that aren't really emergencies, but you haven't planned for them financially, the good news is that this is fixable, and it's what I help all of my clients with. It just needs a specific plan. Not more discipline, not more cutting back on things you enjoy so you, quote, "have more money," and like I said, this is what I help my clients set up so these expenses stop sneaking up and start being planned for ahead of time. If you're paying down debt but still adding to it, don't just focus on the debt. Find out what's causing you to need it in the first place. And as you've listened to this episode and you're thinking, "Okay, I know I'm trying to pay down my debt, but I still don't understand why I keep ending up back here," why this pattern keeps repeating, it keeps happening no matter how responsible you are. If you need help determining what is adding to your debt, just like my client, you're going to want to grab a money clarity call. This is a where's my money going session where we'll dive into where's your money going, where's it getting stuck, and what's keeping you from making the progress you want? Getting a clear picture of where your money is going will help you regain control of every dollar, stop adding to your debt, and have more money to pay down debt faster. So if you're ready for that clarity- Head over to elevatefinances.us/call, C-A-L-L, or you can find the link in the show notes below. You don't have to wait until retirement is right around the corner to get your money working differently. It's time to start figuring out what's happening with it today. Don't let these problems delay your progress to retirement. There's easy solutions for any problem you are facing. Even if you're not in the debt camp, I would love for you to come book a call. Let's figure out what is your biggest challenge, what is your problem, and how can you solve it now. That's where you can start getting ready for retirement much sooner, much quicker, and avoid any of those problems in retirement when you get there, so you can enjoy the money you have, enjoy the life you were deserve to live, and enjoy the freedom that you now have away from that nine to five. Thank you for listening today, and I'll see you next week /p>

Paying Down Debt but Still Adding to It? The Problem May Not Be Your Debt

You’re paying extra on your debt. You’re trying to be responsible. You’re making progress. You’re doing what you’re “supposed” to do. But every once in a while, something happens.

A bill comes up. An expense catches you off guard. You spend a little more than you planned. And suddenly, you’re putting something back on the credit card you’ve been working so hard to pay off.

Then the frustration sets in and you think to yourself, Why does this keep happening?

And if you’re within 10, 15, or even 20 years of retirement, there’s another question that can feel even heavier:

What does this mean for my retirement?

If this sounds familiar, I want you to consider something that may change the way you think about your debt:

The debt itself may not be the problem. The bigger problem may be why you keep needing the debt in the first place.

Your Debt May Be Giving You Information

When you’re trying to pay off debt, it’s easy to make the debt balance your primary focus.

You want to see that number go down. So you make extra payments. You cut back. You try to be more disciplined. And when the balance goes up again, it’s easy to make it mean something about you.

I’m terrible with money.

I just can’t get ahead.

I’ll never get this paid off.

But what if you looked at your debt differently? What if your debt is information? If you’re consistently paying down your credit cards but occasionally adding to the balance again, that pattern is telling you something.

Instead of asking only, “How can I pay this debt off faster?” start asking: “What keeps causing me to need the debt?” That question can lead you to the real problem.

Maybe you’re overspending. Maybe you’re spending everything that comes in each month and leaving no margin. Maybe you don’t have money set aside for expenses that happen several times a year. Maybe you’re using a credit card for expenses that feel like emergencies but are actually predictable. Or maybe your budget is based on what you wish your spending looked like instead of what your life actually costs.

None of these problems mean you’re irresponsible with money. They mean you may not have a system that accounts for the way your real life works…and that distinction matters.

Why This Debt Cycle Matters for Retirement

If you’re approaching retirement, this isn’t just about getting rid of a credit card balance. You need to start thinking about how the pattern itself can affect your future.

1. Debt Competes With Your Future Money

Every dollar that goes toward cleaning up yesterday’s spending is a dollar that can’t be used elsewhere.

It could have gone toward:

Retirement savings
An emergency fund
A future expense
A family experience
Something you genuinely enjoy today

This is why you often hear the question, “Should I pay off debt or save for retirement?”

Debt and savings can compete for the same dollars. And if you’re continually paying off debt only to add to it again, your spending energy and money is moving in circles. The answer isn’t necessarily to stop paying down the debt. It’s to understand what is keeping you from staying out of it.

2. The Pattern Doesn’t End When You Retire

This is an important one.

You might be thinking, “I’ll just deal with this after retirement.”

But if your current lifestyle requires you to occasionally use credit cards to make the numbers work, retirement itself isn’t going to make that problem disappear. In fact, it could make it harder to solve.

Once you retire, you may be working with a more fixed income. You may have less flexibility to increase your income when an unexpected expense comes along. So if you’re borrowing today to cover expenses and waiting until retirement to address the underlying problem may leave you with fewer options.

You don’t want to carry a money pattern into retirement that you could have solved before you get there.

3. Your Estimated Retirement Number Can’t Be Realistic Without Knowing What Life Costs Today

One of the most important parts of retirement planning is understanding how much money you’ll actually need. But you can’t determine that number accurately if you don’t know where your money is going today.

Your current spending gives you valuable information in planning for retirement by clearly understanding all of your expenses.

What does your mortgage cost?

What do groceries really cost?

How much are you spending on travel, entertainment, hobbies, subscriptions and dining out?

What expenses happen every few months?

What does it cost to maintain your home and vehicles?

What do you spend on the things that make your life enjoyable?

Getting control of your monthly cash flow isn’t separate from retirement planning. It is a big part of becoming retirement-ready.

Stop Cutting Expenses As A Solution

This is where I want to challenge something you may have been telling yourself. If you’re struggling with debt, you might assume the answer is to cut back even more on spending. No more weekend getaways. No dinners out. No fun purchases. No spending on yourself. Just buckle down, pay off the debt, and then you can enjoy your money.

But that isn’t always the solution. I saw this with one of my clients, Client K. She felt overwhelmed by her debt and was paying it down with a large snowball amount every month. But every once in a while, she found herself adding to the balance again.

Because of the pressure she was feeling and the progress she was seeing, she started cutting back on things she actually enjoyed. She and her spouse had stopped taking the weekend getaways they loved because she believed the problem was simply to cut expenses to get rid of the large amount of debt.

But when I started looking at her numbers, walking her through the first phase of my framework, Your Money Reality, we discovered something different.

The problem was that she didn’t have a system for expenses. She knew they were coming, but didn’t remember to plan for them ahead of time. These expenses didn’t happen every month, so when they arrived, they felt unexpected.

But they weren’t truly surprises. They were expenses she could have planned for. And since she didn’t have money set aside for them, the credit card became the solution. The back-up plan.

This is where the cycle would repeat itself. She would pay the balance down. Another expense would come up. She would use the card again. So the solution wasn’t to pay off her debt faster. She was already doing that. The solution was to address the need for additional money when those expenses arrived.

I helped her create a system to stay organized and have money ready when each of those expenses showed up. Inside this system, she knew what money was available to spend because the money for upcoming expenses had already been accounted for.

On top of that, she had money going toward retirement, still paying extra on debt, and had room for the things she enjoyed, including those weekend getaways.

That’s what a good money system can do. It doesn’t just help you pay off debt. It helps you enjoy your money.

Retirement Readiness Is About More Than a Zero Balance

Of course, having a zero balance on your credit cards is a great goal. But I don’t want you to think that retirement readiness means simply waking up one day with no debt. The bigger goal is to create a money system that allows you to live your life without borrowing from your future to pay for your present.

That means knowing what your life actually costs. It means planning for expenses before they arrive. It means creating margin in your monthly cash flow. And it means directing your money intentionally so you can enjoy now and plan for later.

You shouldn’t have to choose between enjoying your life today and preparing for the life you want in retirement. You need a system that helps your money do both.

The sooner you build that system, the more options you give yourself later. And when it comes to retirement? We want options.

What If You Really Are An Overspender?

Now, maybe you’re reading this and thinking, “Okay, but maybe I really am an overspender.” That’s absolutely worth looking at. You can dive deeper into the subject of overspending with this episode How To Stop Overspending with my guest Mary Ann Stenquist.

Sometimes what looks like overspending is actually a lack of planning. Think about those expenses that you call “surprises.”

The car registration.

The annual insurance bill.

The home repair.

The property taxes.

The holiday spending.

The vet bill.

The quarterly expense you forgot was coming.

The thing you say, “Oh yeah, that happens every few months.”

Those expenses may not be emergencies. They may simply be expenses that haven’t been given a place in your money system. And that is fixable. You don’t need more discipline. You don’t need to cut out everything you enjoy. You simply need a better way to organize your money so those expenses stop sneaking up on you.

Where Is Your Money Getting Stuck?

If you’re paying down debt but still finding yourself adding to it, don’t just focus on the balance. Get curious about the pattern. Ask yourself: What keeps causing me to need the debt?

If you’re unsure or need some help in defining what is adding to your debt, book a Where’s My Money Going session. We’ll look at what’s happening with your money today, where it’s getting stuck, and what may be keeping you from making the progress you want.

You don’t need to have everything figured out before you book the call. You simply need to be willing to get curious about what’s really happening with your money. Because when you understand the problem underneath the problem, you can finally start solving it. And that can mean less financial stress today, more control over your money, and a clearer path toward the retirement you want.

Ready to stop wondering where your money went and start understanding where it’s going?

Book Your Session Today!