Happy young woman saving money in a piggybank - home finances concepts

 

Don’t you just hate those credit card companies and debt collectors calling and sending mail; reminding you of the power they hold over you? All of your debt just looming over your head? I certainly am not very fond of the whole “being in debt” situation. If you’re feeling like me, here are some steps in becoming debt free!

1. Analyze Spending

Yeah, that’s right, there’s a little brain work involved. It may seem daunting at first, but trust me: you will feel so much better afterwards. Once you look at your bank and credit card statements you can see where all your money is going and where you can cut back. It may take a few hours to do this, but when you’re done you will feel so in control of your finances and ready to kick debt in the a** ! Take back control of your life!

2. Set Realistic Goals

It’s important to remember that paying off debt is a patient game and will take a while, just depending on how much debt you are in and what your income looks like. You have to take care of your necessities first: rent/mortgage, utility bills, food, gas/transportation, etc. Try to live as cheaply as possible, only paying for your necessities on a regular basis. If it’s possible, maybe you could downgrade or cut back in some areas. Don’t spend money eating out. Grocery shopping and cooking for yourself is cheaper and healthier. Get rid of car payments by trading your car in and paying cash for an older, used car. Once you have cut back, figure out how much extra income you have each month and use ALL extra money to pay off debt!

3. Write a Budget

Write it all down. Keep a visual aid of your income versus expenses. This will make it easier for you to stick to your goals. Look at it every day. Know how much you have to spend on your necessities and remind yourself anything extra is going towards paying off that debt for financial freedom!

4. Side Hustle

There are so many side hustles out there. Lots of people work full-time jobs and side hustle for extra income to pay off debt. There’s babysitting, lawn care, pet sitting, house sitting, running errands, waiting tables, Uber driving, etc. Check out websites like Craigslist, care.com, Indeed, etc.

Now, get to work! Analyze your spending, set realistic goals, write it all down, and get your hustle on!