The advice that most people will give is to focus all your attention on reducing debt. This seems like good common sense because while you are in debt you are paying interest. This system will help you reduce debt but it is not the way to get rich. The best it can do is to bring you up to zero and it may take years to do that.

Here's how the people who go from rags to riches do it!

Step 1. Reduce You Debt Repayments To The Minimum Possible.

The strategy is to find a way to make your debt repayments as small as possible and not to worry about the interest. This may mean that you refinance your debt into a longer term loan. Approach the people you owe money to and do a deal to reduce the payments, it may be easier than you think.

Now you may be thinking that this is crazy but by the end of the article you should see the wisdom in it.

Step 2. Make Putting Aside Money To Invest Your Highest Priority.

The reason why you reduce your debt repayments to a minimum is so you can change your focus to building wealth. Make your first priority putting aside money to invest. This money is not money you are putting aside to spend later. You never spend this money. It is investment capital and cannot be used for any other purpose; no exceptions.

If you don't do this then you wasted your time reducing your debt payments. If you are serious about becoming rich you have to change from being debt focused to being wealth focused. You need to invest 20% of each and every dollar that you earn, without exception, no matter what sacrifices you have to make to do that.

Even if you are initially earning a lower rate of interest than you are paying on your debt you are still better off with this system. The process of accumulating wealth, separate to your debt problem, will help you turn around the way you think about money and that will lead to you developing the wealth creation habits that you need instead of the debt creation habits that you currently have.

Step 3. Get Rid Of All Unnecessary Spending.

If you are going to really turn things around you can't be half hearted about it. You have to get serious. If you are in serious debt and then you go out and buy the latest ipod or some other luxury item then all you are doing is increasing your problem and programming your subconscious mind for more debt.

Write down every single cent you spend as you spend it and write down exactly what you are spending it on. Then, at the end of each day, analyze where your money is going, identify unnecessary spending and then make sure you get rid of those bad spending habits. Keep this daily recording and analyzing up until you are rich!

Step 4. Accept That Your Debt is Your Fault and Develop Good Spending Habits.

This step is absolutely crucial if you are going to turn debt into wealth. You must be totally willing to accept 100% personal responsibility for the situation you are in now and for the situation you will be in tomorrow. If you can't do this then your life will not change!

Accept that you have bad money habits that have led you into the financial mess that you are in. It is not bad luck, or unfortunate circumstances or anyone else's fault it is totally due to your bad money habits, end of story.

You need to identify and remove forever those bad money habits and replace them with good money habits. Steps 2 & 3 above are the first two good money habits for you to lock in place. Start developing success thinking habits and success action habits and you can turn your life around. Thousands before you have done it.

Step 5. Stick To This System - No Matter What!

You can't afford to vary from this system. Put it into place and stick to it no matter what circumstances or potential excuses come up. The only way to turn your life from debt to wealth is to do each and every step on this system and stick to it tenaciously. If you have the courage to do it then you will discover that I am right.