Prior to entering the working world, whether we know it or not, we have a choice as to which cycle we become engaged in. The disadvantage which we face, is that commonly, we enter into the, "Debt Cycle" before we even have the opportunity to be in a position to enter the, "Wealth Cycle".

How does this happen?

Generally, it happens in our freshman year of college, or sometime shortly after reaching the age of majority. We are faced with student loans, and are showered with credit card offers. We are given the opportunity to build debt from a young age, but not wealth. This leads to a cycle of debt, in which we become engaged in the habit of living beyond our means, and working in the future, to pay off our past.

How can we transition from the Debt Cycle, to the Wealth Cycle?

Ideally, just as we wish that people never begin the negative habit of smoking, we also wish that people never enter into the Debt Cycle. Unfortunately, this is much easier said than done. Consequently, just as there is a plan to quit smoking, there is also a plan to transition from the Debt Cycle, to the Wealth Cycle.

The first thing that we need to do, is change our thinking, perceptions, acceptance, and habits, as they relate to debt. Credit cards are not necessary at a young age in order to build your credit. It is not okay to finance or lease a vehicle that we cannot afford. It is not okay to incur sixty-thousand dollars in debt to obtain an undergraduate degree from a private college. The list goes on, but I think you get the point.

While not incurring any new debt, the next thing that we have to do, is determine a course of action to pay off our existing debt. A way to accelerate this, is to bring in a second income. This can be done through a second job, or a home-based business.

You can view more on this topic at www.averagejoetoceo.blogspot.c om

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