How to Save your Money and be Debt Free Fast
February 18th 2019
Are you in debt up to your eyeballs and don’t know what your next move is? Do you often cry yourself to sleep stressing over your finances? Well if you’re not as dramatic, but still are in debt this article is for you! Now I am no financial expert what so ever, but I’ve had my fair share of financial struggles! When I say struggles, I mean literally having $0 to my name and $12,000 of debt. I was once the person who would actually cry myself to sleep stressing over my finances and not knowing what my next move is. Sharing this, I’m hoping to help anyone who may be struggling and give ya’ll some hope! You are able to live a debt free lifestyle and experience financial freedom by following these few tips that helped me!
TRACK YOUR MONEY
Make yourself a list of your reoccurring financial obligations. Figure out EXACTLY what you are paying monthly so you know the minimum amount of money you need to live.
ELIMINATE THE NON-PRIORITIES
Once you’ve laid out your financial obligations, list out what isn’t an obligation and the price tag that goes along with it. Things such as getting your nails done, daily coffee runs, monthly subscription boxes, etc. Eliminate ALL of your extra “luxuries” that aren’t 100% necessary for survival. Yes it will suck, but by doing this you will see how much more money you have right off the bat to go towards your debt! Once you see that number and how significant it is, it won’t suck so much anymore! $20 here, $5 there, $10….things really do add up! Keep in mind you can always go back to paying for these things after your debt is paid off! ….Without getting yourself in another debt situation of course!
HIDE YOUR CREDIT CARDS
This might sound silly but it is totally effective! By not having your credit cards in your wallet, you will not see that you have any options to purchase any unnecessary things! Remember, we’re sticking to a strict budget here so we need to be disciplined! Staying disciplined and resisting any temptation to spending money, is the KEY to success in eliminating your debt as quickly as possible! If you cave in, you’re not only slowing yourself down, but you’re also letting yourself down! Being debt free will feel better than that unnecessary purchase!
STASH YOUR CASH
IF YOU WORK A JOB WITH CASH TIPS:
Stash away all these tips in an envelope with a balance sheet on the front. Keep track of what is put into this envelope so you know your daily balance without having to count everything in it all the time.
IF YOU DO NOT WORK A JOB WITH CASH TIPS:
I highly recommend you open up a second bank account in this case. Have your checking account be where your monthly survival money lives, and your secondary account be a savings account you don’t touch. After your priorities are paid, do not allow any extra money (besides the minimum amount your bank requires for the account to stay active, if applicable) to linger in your checking account! This will eliminate any temptation to touch your money in your checking account!
Out of sight, out of mind! Let that be your mentality with both of these stashing options! If you don’t see it, pretend you don’t actually “have” it, and watch how much it grows! Use your new savings account money to pay off your debt, then once it’s paid use it to save for your future adult desires!
HAVE A PLAN
Put together a plan to make weekly payments to your accounts in debt. By doing so, you’re applying money to the principle balance of your account, which means you’re putting the money toward the actual balance and not the interest payment. Using this method, you’ll see your calculated interest go down and your balance go down as well!
It’s as simple as that! You’d be surprised how much more money you have when you start to crack down on your spending and really watch where every penny goes! This is the method I used to get myself out of my situation in just 1 years time! If you don’t feel like any of my tips will help your own situation, you may want to consider talking to a banker who can guide you in the right direction. Things such as applying for a personal loan, or even opening a new credit card to consolidate all your debt onto one account may be better options for you! Whatever way you decide to approach it; as long as you stick with a plan, you’re bound to succeed!