3 Easy Ways to Get Out of Debt
You’re cruising along in life, hitting all the typical milestones. You have good friends and hobbies you enjoy. Generally speaking, you’re a pretty happy person. But something has been nagging at you for a while. Something you’ve been wishing would magically go away...
It started small but somehow has grown to an uncomfortable amount. In fact, it’s beginning to feel downright unbearable. You’re ready to do something about it, but what? Deciding where to start feels overwhelming.
The good news is, it doesn’t have to be. There are simple steps you can take right now to begin seeing results.
Let’s jump right in.
Set a Budget
Budget… I know, the dreaded word that conjures up images of sacrifice, scrimping, and tedious hours tracking every penny spent. But a budget is the springboard to all the other steps that help you get out of debt. It eliminates the guesswork so you know exactly how much money is coming in and exactly where it’s going.
Begin by jotting down all forms of income. Then make a list of all expenses. Include fixed expenses like your car payment and mortgage. Take the average of the costs that fluctuate, like your electric bill, groceries, and gas. And don’t forget those periodic expenses like Christmas, the trip back home to meet your newborn nephew, and the front-row tickets to see your favorite band.
1. Limit Unnecessary Spending
Budgets tend to reveal the good, the bad, and the ugly. But once you have that clarity, you can begin to eliminate waste. Are there subscriptions you no longer use? How about gym memberships, movie streaming apps, car wash services, or meal kit programs? Is there a less expensive grocery store in your city? Speaking of food, how about dining out once a week instead of daily? When was the last time you got quotes for auto insurance? There may be a better deal than what you have now. In other words, make adjustments that will free up money you can use to pay down your debt.
2. Set Monthly Goals and Applaud Each Accomplishment
Once you understand your spending habits more clearly, you can set reasonable monthly goals. When goals are realistic, you’re more likely to stick to them. Tasks seem smaller and more manageable. When progress can be measured in the short term, you stay focused and are inspired to keep going.
Let’s say your goal is to pay off your car. You have 8 payments left, but if you double each month’s payment, you’ll have it paid off in 4 months. You decide to cancel your housecleaning service and gym membership. Now you have the extra money, which was there all along. It was just being used for something else. You celebrate when the auto bill is due and you pay twice the minimum. It feels empowering. One payment down, 3 to go. And it wasn’t difficult at all.
With Budgety, you can now set personalized goals for saving and paying off debt. Check it out here!
3. Straight-Forward Steps Work Every Time
Getting out of debt doesn’t have to be daunting. You just need simple strategies that work. You no longer need to worry or wonder aimlessly. It’s time to regain your power and have peace of mind about your finances.
Don’t have a budget yet? Get started with Budgety. Be sure to check out the Goals feature on our app. It helps you pay down debt, see progress, and stay on track. Try Budgety free for 30 days!