Commit. Plan. Take action.
How important is mindset when getting out of debt?
That’s the question I received last week from Michael (not my husband).
So I did a scope (as the cool kids call it) where I shared the following two-minute trick to change your thinking about debt.
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I know, I know.
This is a little late since we’re already into October, but I wanted to catch you up on our numbers for the summer.
Since I took a little break from blogging over the summer due to our move, last week I brought you our June and July 2015 Debt Freedom Progress Report. And this week, I’m catching you up on how much debt we paid off in August when we downsized and moved into our dream house!
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My husband Mike and I have made a huge decision.
One that will alter the course of our lives and our kids’ lives.
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These past couple of weeks, we’ve been talking about saving money to help you reach your financial goals. I shared 48 ideas to help you cut expenses and trim your spending.
Today, let’s dive in to brainstorming ways to boost your income.
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If you’re a regular reader of the blog, then you know that I love sharing debt free stories with you. And today I have another inspiring journey to share with you!
Deacon and Kim Hayes are a young couple living in Arizona with their baby boy.
They paid off $52,000 of debt in 18 months!
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Last week, I shared 20 expenses you can cut from your budget and how my family and I cut our grocery spending in half.
This week, we’ll look at some more ways to trim your spending to make room in your budget for paying off debt or saving up for your next financial goal.
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It’s time for another installment of Monica’s Two Cents where I answer YOUR questions!
If you have a question for me, I would love to hear it. You can fill out the form on the Contact page or send me a message via Facebook.
Now, let’s dive in to today’s question.
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A surefire way to speed up your debt removal process is to reduce your spending and increase your income.
This just might be the part that you enjoy most! This is where you have a chance to get creative.
This week and next week, we’ll find ways that you can trim your spending to make room in your budget for paying off debt or saving up for your next financial goal.
Today, we’ll focus on eliminating some expenses from your budget.
Pull out your monthly budget.
Examine each expenditure. Go through line by line to come up with some potential expenses you can cut from your budget.
What are some expenses that you can get rid of completely?
Other than your basic necessities of food, clothing, shelter, and transportation, carefully consider each expense.
Do you really NEED these items?
Challenge yourself to write down at least ten expenses you can eliminate from your budget.
For now, these are just thoughts.
You’re not going to act on each item you list at this time, but I want you to spend some time on this and add as many ideas to your list as possible.
Get creative.
Don’t worry if an idea sounds ridiculous or impossible. It may lead to a better idea later.
Once you have at least ten items listed, add ten more.
No matter how big or how small the potential decrease in spending may be, don’t disregard any idea.
Small changes add up over time.
Here is a list of 20 ideas to help you get started on your own list:
Again, these are just ideas. It doesn’t mean you have to implement every single one, but understand that the more you trim your spending now, the quicker you’ll get out of debt.
You don’t have to be as drastic as Miriam and unplug your fridge to make quick progress. My husband Mike and I paid off $65,000 of debt in 11 months on a single, middle class income, and we haven’t cut all of the expenses that I suggest.
Every situation is unique. What worked for us may not work for you.
I’ve stated this before, but the point of this whole process is to be intentional with your spending.
If you don’t cut an expense, then you should have a good reason for keeping it.
There are a number of expenses in our budget that we could cut, but we haven’t.
For example, we put our son in preschool last fall. We didn’t have to do that. We could have saved the expense and taught him his ABC’s and numbers at home.
But we feel that education is important, and we want him to be prepared for kindergarten when the time comes. While we’ve sung the ABC’s and worked on counting with him, he’s shown tremendous progress since September. He loves school and is already trying to read — at 3-and-a half!
Decide on two expenses that you can cut this week.
Then take action to do so by the end of the week. Make a pact with your spouse or accountability partner that you will act on these ideas by the end of the week.
Put it on your “To Do” list or add it to your calendar of when you are going to remove these expenses from your budget.
Two items is manageable for most people, and you will feel accomplished by freeing up even a little bit of money in your budget. But if you want to cut more, by all means, trim away!
If you are serious about getting out of debt, read our other popular articles:
Alice and Scott Paid Off $200,000 Student Loans In Seven Years
Ron and Thu Paid Off $137,000 in 7 Years
Make Some Passive Income With Paribus
Yes, You Can Pay Off Debt When You’re Behind On Your Bills
Lastly if you are snowed under with debt, consider refinancing with SoFi. They have solid customer service and a competitive model.
What About You?
Participate in the conversation. What are some expenses you have cut from your budget to reach your financial goals? What would you add to the list? Share in the comments below.
Spending plan, cash flow plan, budget.
I don’t care what you call it.
You need to have a plan for your money.
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If you’re needing some motivation on your own journey, this interview is sure to deliver.
Alicia and Ralston Vaz have cut their debt by $255,000 in five years!
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