Like most of you I was not born with money and in my case, I wasn’t taught how to avoid debt.
I actually become debt-free after years of being in debt with money stresses, over my long hard slog to get out of debt (the hard way mostly) and achieve a debt free lifestyle.
Things I have learned about debt include a few things to help me get out and stay out of debt, that I thought I would share.
So, if you are struggling with debt and are looking for ways to Ditch your Debt, I hope these five things can help you……
What I Learned about Debt – Setting Financial Goals
“People with goals succeed because the know where they are going” – Earl Nightinglale
I love this quote and it is so true! You want to get out of debt, don’t you?
Then set your goal, make a plan or in this case a Spending Plan formerly known as a “budget”.
Use the SMART formula – specific, measurable, achievable, realistic and time-bound, I keep this in mind when each month I set a new financial goal for myself.
When I first started a Spending Plan my first goal was “pay off the smallest credit card (I had 3 at the time) balance of $513”.
I remember this because it was the lowest amount, I owed out of all my debts and when I crossed it of the list I was over the moon.
Advertising Savvy
I like to think of myself as a pretty smart person……now, not so much back in the day when I did fall for marketing hype, back then I believed I really did need the newest smart phone, or buying something on sale was a way of saving money even if I didn’t need it.
I went a little drastic in my approach to the whole being influenced thing and this might not be something you consider sane, but hear me out.
In an attempt to become debt free, I unsubscribed from all retail emails, I stopped watching TV to avoid advertising, you might want to sit down for this one, I cancelled all social media, yes you read that right I have no social media at all!!
With no temptation my financial options aren’t limited to paying off the debt from buying things media told me I need in order to have the perfect life.
As I said I went drastic, but think about it if you really want to reach your goal of being debt free consider removing some of the influences that contributed to your debt.
What I Learned about Debt – Disciplined Spending
In my house I am known as being stingy, personally I prefer frugal, but hey stingy or frugal I’m still out of debt so yay me!
My determination to be debt free meant being consistent every day, following my Spending Plan, doing without somethings like going out to restaurants, the movies or getting my nails done (I still do this at home instead of paying someone to do them).
Some days were hard and my self-control, was more like no control, so if you struggle with self-control and being disciplined why not put things that you want on a “want list” then when you go shopping take the list and only buy what is on the list, I did this then found I when I went to make the purchase I didn’t want to spend the money!!
Other really cool thing I did want set up a system where all the bill payments would come out on a certain day each week, the next day after I was paid, this gave me regularity and helped me become more disciplined in paying off the debt.
Stuff n Things
Stuff, all the stuff this is how most of us become in debt, were buying things we think we need or want like the Joneses or because it’s how you were taught to spend.
For me this was tough as I said my parents were in debt and there was a lot, and I mean lot of stuff in our house, like verging on hoarders’ kind of stuff.
So, I was in the same pattern of buying but I was also torn because I hated all the stuff around our home.
As a part of taking control and getting out of debt I sold a lot of the stuff to pay down debt, and found I was a minimalist, for me getting rid of almost everything was a weight being lifted of me.
After becoming debt free and a minimalist my attitude towards spending on “things” changed and I now get happiness from being financially secure and experiences with the help of my Spending Plan where I allocate a percentage to experiences so I don’t over spend I can keep FOMO syndrome in check.
I have a rule for buying things, I don’t impulse buy, I will wait 48 hours kind of like a cooling-off period and it works most of the time I don’t end up buying whatever it was.
Cold Hard Cash
So here again is where I went just a wee bit drastic in my approach to being debt free, I don’t have a credit card, ApplyPay, Google Pay, Zip Pay, After Pay, Tap n Pay etc nope I have none of super cool mobile payment options.
If I want something (after waiting the 48 hour cooling-off period) and it is not in the Spending Plan I save up, there is something deeply satisfying paying cash for purchases!
Also I never save my card details on websites this way I can’t just hit the Buy Now button – or my 13 year old daughter can’t hit the Buy Now button for her self-using my amazon account, I am telling you now I feel like I learn my lessons the hard way a lot!
Cash is a great way to help you stick to your Spending Plan and limits the impulse/website buys meaning your goal to be debt free stays on track.
From what I Learned about debt, even the smallest change in your financial habits weather its one of the above or a financial challenge like a no spend month or a shelf cooking week, just start and Ditch your Debt!