Today I want to talk about what to do if you are in a financial hole.

What is a financial hole?

It is a large credit card debt accumulating interest.

It is a mortgage you cannot pay on time.

It is multiple car payments going unpaid.

It is struggling to make months end.

If you ever find yourself in one of those situations.

There’s one thing to remember:

The First Law of Holes 🕳️

“If you find yourself in a hole, stop digging.”

Let me explain.

This statement is a metaphor.

A metaphor to warn you about something important.

When you’re in an undesirable position.

The best thing to do is stop making the situation worse.

Stop digging your hole deeper and deeper.

Because the deeper you are, the harder it is to climb out.

How does this apply to personal finance?

If you have credit card debt,

Stop using your credit card.

If you’ve missed mortgage payments,

Pay your mortgage first, then figure out the rest.

If you’re behind on car payments,

Prioritize the car payment, downsize to a paid-off car, or sell it.

If you’re not making it to the end of the month,

Stop all non-essential expenses.

Notice the order of priorities.

1 - Pay missed payments, debt, and interest.

2 - Then pay for your lifestyle.

Why?

Because what digs your financial hole deeper is missed payments, debt, and interest.

The first step toward getting out is to stop digging.

Yes, I know.

In the short term, this might not be fun.

I get it.

But staying stuck in a financial hole?

That’s miles below fun. (Get it? Holes joke 😂)

The effort to climb out is non-negotiable.

It simply has to happen if you want to move forward.

Period.

Lastly.

The First Law of Holes is your first step toward what can be eloquently referred to as

“Putting your sh*t together.”

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The First Law of Holes