“How did you become debt free?”
This is the question I am most often asked. So, today I want to share with you five tips to #debtfreelife!
1. Be Intentional
Know where your money is going, why you are spending it and where you are spending it! Too often, spending money is a habit or reaction to something else.
2. Complete a hand written, zero-based budget.
No one likes doing a budget – I get that. BUT, writing it out by hand makes it real and then you can adjust to the reality of the situation. The budget also helps with Tip #1. I started out completing a handwritten budget and to this day I still do one. I use a spiral notebook but you use whatever works for you.
3. Know your “why”
Why do you want to become debt free? You may have several reasons and that’s ok. Your reason may also be different than your spouse/significant other. That’s ok too. My reason was to have money to pursue my dream. My husbands reason was to complete a kitchen reno ( ok, I wanted the new kitchen too but my priority was dream, first; kitchen, second)
4. Overbudget and underspend.
This is a psychological thing. You need to know that you are going to make forward progress to meet your goal. The grocery budget is a great way to overbudget and underspend so that you can use the difference to apply toward your debt. For example, set your grocery budget at $500 a month, spend $450 and take the $50 you saved to put toward your debt.
What will your life look like once you are debt free? Write it out, imagine it, create a dream board – whatever you have to do to keep that visual in the front of your mind. You need to focus on that when you are making sacrifices to pay off the debt.
Today is a very special day for us – celebrating 22 months of being DEBT FREE and we have been enjoying #debtfreelife ever since! I often tell people that it was really hard to get out of debt but it is HARDER to say that way! It really takes a lot of discipline to just not go and mindlessly spend our money we were paying towards debt on stuff we don’t need. Now, that’s not to say that we still live a “beans and rice” lifestyle – we do in fact have a “fun” line item in the budget – but it is to say that I am glad we learned the discipline we need to have to
NEVER HAVE DEBT AGAIN!
It was a HUGE goal for us to be debt free by my 40th Birthday but WE DID IT – we paid off Sallie Mae and 9a the morning of my birthday and called in to the Dave Ramsey Show to do our Debt Free Scream at 2pm that afternoon. We paid off 2 vehicle loans, 6 credit cards and my student loan in 3 years, 8 months and 27 days.
Want to listen to our Debt Free Scream? Click here
Did you do a debt free scream too? Share it on the comments – I’d love to listen to it!
Do you want to be debt free too? Need help? Contact me TODAY to take advantage of The Gift Economy offer – it’s only good until July 31st!!