#6: How to Get Out of Financial Debt

In this episode of Wealth Para Todos, Rita-Soledad Fernandez Paulino, a queer Mexican American money and self-care coach, addresses the struggle many face in sticking to their financial plans.

Soledad shares insights from a follower's story of falling into debt despite taking significant steps to improve their finances and mental health. They discuss why hiding credit cards isn't a solution and highlights the importance of understanding the root causes of spending habits. The episode delves into practical strategies such as setting up sinking funds, maintaining a checking account buffer, and leveraging debt strategically.

Soledad encourages listeners to build financial habits that factor in self-care and joy, rather than just focusing on food and shelter. They emphasizes the need for a shift in mindset about debt, viewing it as a neutral tool that, when managed properly, can be part of a healthy financial journey.

00:00 Introduction to Wealth Para Todos
00:21 A Personal Story of Financial Struggles
01:02 The Problem with Hiding Credit Cards
02:06 Building Trust and Sinking Funds
05:02 Proactive Budgeting for Joy
08:21 The Importance of Sinking Funds
13:54 Rethinking Debt and Financial Planning
16:20 Conclusion and Final Thoughts