Are you looking to get out of debt this year? I’m on the same journey and here are 5 tips I can share that will help…
This year, one of my goals is to get out of debt. I have significant student loan and credit card debt and after carrying it for years, I am tired. I want to free up those hundreds of dollars a month to be used for more worthwhile things. Moreover, I’d rather support my charities of choice, take my kids out for experiences they’ll remember, and save the money for the future instead of using to pay interest.
Are you feeling the same way?
If this is the year that you want to get out of debt, no matter how big or small it might be, then let me share 5 tips that I have learned that will help you reach your goal…
5 Tips for Getting Out of Debt
Get rid of extra expenses
I know you think you deserve it, and you probably do, but the gourmet coffees, 1-click Amazon purchases, and happy hour drinks are hurting your goal. Extra expenses eat up money that could be put toward paying off your debt. As hard as it will be, try to slowly and systematically cut back on the extra spending you’re doing.
For me it was snacks like chips and fresh guacamole, energy drinks, and small little purchases on Amazon that add up. Stopping these took intention and sometimes I did them without even thinking. So I know it can be hard, but you can do it.
Look for alternatives
I starting drinking more coffee at home rather than getting something at Starbucks or drinking an energy drink. I had to ditch my chips and guac habit altogether. And Amazon? I offloaded the app so it’s harder for me to quickly purchase something.
What can you switch out to save money that you can put toward your debt? Drinks at home instead of out? Homemade meals instead of takeout? Generic brands instead of name brands?
Spend some time thinking of how you can save money by finding alternatives to what you already do. The goal is to try to save money while not losing value.
Earn more income
Here’s what is really going to make a difference. Finding a way to make extra income. A side gig, a part-time job, overtime at your current job, whatever you can think of. Making a little bit more will give you pure income that goes directly to your debts.
I began tutoring to pull in a little more money each month that I can put toward debt. It’s not a lot because I honestly don’t have too much free time with everything else I’m doing with my kids and church. But it’s something, and I encourage you to look at Care.com or Fiverr.com for ways to make a little extra income to pay toward your debt.
Track your spending and earning
Now that you’ve got less expenses (or at least less unnecessary ones) and a little more income, it’s time to track what you’ve been doing. This is a two-fold benefit. First, you can see where your money is going to see if there are any expenditures that you’d like to change. Second, you can see what you’re paying off as a motivating tool.
You can use a spreadsheet, an app, a planner, or even just a piece of looseleaf paper that you’ve added headings to. Make it as simple as possible so it’s easy to keep up with. You’ll be grateful you did.
Stay strong
There will be many times when those frappucinos, margaritas, sales, and artisanal products call your name. You have to resist the pull because you now have something more important to spend your money on. Keep your goal in mind, add it to your bathroom mirror on a post-it note, or make it your lock screen. Do whatever you have to to make it easier to stay strong in the face of temptation.
Remember, you’ve got this.
I hope these tips help you save money and get out of debt this year. I know it’s hard as I struggle right along with you, but it can be done. Keep up the hard work and you’ll get there!
Looking for more on budgeting and saving money? Check out these posts:
10 Ways to Save Money on Your Groceries
How to Budget Your Tax Return Wisely
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