YOU CAN PAY OFF DEBT FOR GOOD
Debt is becoming more and more common in all of our lives. Debt has taken on so many forms today, with credit cards, mortgages, car loans, personal loans, school loans, and so much more. It is often overwhelming to think of all the debt we accumulate, and we begin to feel that we cannot seem to pay down any of this debt and really make a difference. Our incomes seem to almost stay the same as the years go on and prices rise for healthcare and other expenses, cost of living increases, and our debt just seems to get worse no matter what we do. It is mind boggling to even consider a life without debt, a life where we were completely debt free and could begin to save for those things we always dreamed of, or could begin to finally plan for retirement. Many people these days are forced to work well into retirement due to these same circumstances in their own lives. I am not here to provide an easy out for you or to say that you can follow these few steps and get out of debt with ease. I am however here to tell you that this dream is possible and we are on this journey together to begin to save and create a plan to pay down our debt and to find financial freedom. The biggest step in moving forward is to commit to starting and to agree to not go back. Today is the day that we commit to getting out of debt and commit to do the hard things. Today we commit to save more, spend less, cut costs wherever possible. Today you will start a savings account, begin paying your debts off from smallest to largest and therefore begin to eliminate them altogether. There are many days where this will not be easy and you will feel like giving up, but you can do it and so can I. A budget is a lot like a diet, it is simple but never easy. A budget is simple in the fact that once you make those changes and begin to follow them regularly, you will begin to notice results. With a diet when you begin to follow a routine and watch everything you eat and track it you begin to discover how much you were actually eating before, and you discover ways to lose more by making simple changes or eliminating extras. With a budget a lot of the same rules apply, if you write down or track all expenses, give yourself an allowed amount for each category that can be spent monthly and make a plan you can and will see results.There are some very important things that can help put you on the right track as you begin this journey. I am not an expert by any means I am still right here on this journey with you, but I have made huge progress over the last few years by making some of these small changes myself. For the first time in years after successfully completing the 52-week money challenge I have an emergency fund. I have built up my savings a bit thanks to the challenge but the best part is the way the challenge is set up it really never hurts too much. Here are the most important first steps to getting you started on this journey.
1) Start an emergency fund. At least $1000 in savings just in case you need some extra money for emergencies. This seems crazy when you first start out and often seems impossible to do, but let me tell you it is so important and it's easier to do than you think. Try the 52-week money challenge this year. I began the money challenge a few years back, and I am certain that you will be amazed at how quickly you can save just like I was.
https://savingjoyfully.com/52-week-money-challenge/
2) Make a budget... Write out all of your expenses and determine what you have left after all of your bills are paid for the month. It may be less or more than you expected but either way you will know exactly what you have to work with.
3) Start paying off debt from smallest to largest... I find this really helps motivate you to begin to pay off more debt faster. We typically give up when we do not see results quickly, but doing this will produce results you can see and will free up more money in the future. After you have successfully paid off the first debt, be sure to take the monthly payment amount from that debt and apply it to the next smallest debt. Each time you successfully pay off one debt you will then apply the amount you used to pay onto that other debt, towards the next smallest debt. Once you have finished paying off each credit card cut up and destroy the ones you never plan to use again which should be most of them, and save the one with the best rates and no annual fees for emergency use only.
4) Look for ways to eliminate unnecessary costs and expenses... There are many expenses we have that can be decreased from household expenses to entertainment expenses. Many people have smart phones and home phones, cable television or satellite tv. Some serious thought on what we actually need may free up Some additional resources we did not even realize we had originally. My husband and I got rid of our home phone, do not have cable television and even have regular cell phones (not smart phones) ,yes they still make them believe it or not. Here are some other tips that you may find helpful in decreasing your expenses. https://savingjoyfully.com/simple-money-saving-tips-for-everyday-living/
These are some simple ways to begin to pay off debt and see some results sooner.
Let's make the commitment to our future selves today that we will not give up and we will work harder today to improve our futures.
Here are a few more things that may help you decrease your debt and get on the right track financially:
https://savingjoyfully.com/save-money-on-your-medical-bills/