Breaking Free from Debt and Building Wealth Fast – Part 1: The Debt Trap

strategies for accountants Feb 05, 2024


Debt is a word that sends shivers down the spine of many. It's a trap that can be all too easy to fall into, especially when success seems to be within reach.


This is part one in my series ‘Breaking Free from Debt and Building Wealth Fast’. In this blog post, I want to share my story with you. In my own journey, I've experienced the highs and lows of financial decisions.


I want to show you how easy it is to fall into the debt trap, but also how with the right strategy and mindset, you can overcome debt and start to build wealth and gain financial freedom.


My Debt Story


Back in 1996, I started my accounting firm with a dream and a sense of invincibility. I was young, around 28 or 29, and I thought I knew everything.


In just two years, I went from zero clients to 200, from zero fees to 200,000 fees. I grew crazy fast, and I thought I was successful.


But as many of you know, one of the things I got wrong was pricing. I was undercharging, my margins were terrible, and I was struggling to make ends meet. The bank kept giving me money, and I kept increasing the overdraft. I was building my practice on borrowed money, and I thought it didn't matter.


Facing Bankruptcy


In December 1999, I was that close to bankruptcy. I had no money to pay the payroll, and I felt helpless, like I was letting everyone down. It was a seriously tough time, and I nearly went out of business because of business debt.


Fortunately, something changed in December 1999, and things went very well for the next few years.


I discovered value pricing, turned around my accounting firm, and started working with Steve Pipe and AVN. I thought I'd made it, but I was still making crazy mistakes.


The Lessons Learned: Understanding Assets and Liabilities


I moved into a beautiful, 17th-century, grade two listed building, financed through a massive mortgage. I thought I'd made it, but I soon realized that a house is a liability, not an asset. It was a money pit, costing me a fortune in heating and maintenance.


I bought my dream car, a Jaguar XKR, for £45,500, financed through a four-year loan. Two years later, I could have bought the same car for £30,000. I paid an extra £20,000 just because I couldn't wait two more years.


The Path to Financial Freedom


I became obsessed with wealth building and learned a system for clearing down debt.


I became debt-free in 2010, clearing over half a million in six years. It was a huge weight off my shoulders.


Now, I focus on systematically investing the money I used to pay down debt. I've learned the power of compound interest and the importance of making wise financial decisions.


Final Thoughts


Debt is a slippery slope, but it's not an insurmountable obstacle.


With the right mindset, knowledge, and determination, you can overcome it and achieve financial freedom. My story is a testament to that, and I hope it inspires you to take control of your financial future.


Remember, the reason we get into debt is not a lack of income; it's often ignorance and overspending. Be wise, be patient, and build your wealth with care.


Make sure you check out my full video on how to get rid of debt FAST.



If you found this valuable and would like to learn more about value pricing, I run a free live online training session every month with a topic chosen by you. Attend live and you can ask me any questions you have. Click here to register and I will send you an invitation to the next session.


Wishing you every success on your pricing journey


Mark Wickersham


Chartered Accountant, Public Speaker and Author of Amazon No.1 Best Seller “Effective Pricing for Accountants”