Debt can be one of the most crushing trials in life. It can become overwhelming until it is all you think about, bound and limited by debt. Nobody intends to go into debt, but it often occurs due to unique circumstances and critical unmet needs. If you find yourself currently in debt, whether heavy or small, remember that you can get out of debt. Follow these ways to achieve financial freedom once again.
1. Tell Your Family You are on a Budget
Be honest with those around you that you are in debt or want to avoid debt. There is no shame in wanting to be smart with your money. Set the expectation that you want to be more frugal with your spending. You won’t make progress if you aren’t on the same page and have different spending habits. First and foremost, make sure you are united in saving and cutting expenses to get out of debt.
2. Avoid Expensive Hobbies
We naturally spend money on so many things because they are an essential part of our everyday life. We don’t need all the things we spend money on more often than not. Some common examples are home improvement stores, golf memberships, craft stores, and any project that we somehow never finish. When trying to get out of debt, decide what is most important and cut spending on the non-essential things until you are free financially to do as you please.
3. Don’t Compare Yourself to Others.
This rule is a big one. How often do we participate in something just because our neighbor is doing it? Whether it is a new car, new grill, yard improvements, or just keeping up with new technology, there will always be more to buy, and it will never be enough if you compare yourself to others. Your value is not determined by how much you have compared to those around you. Focus on yourself first, and don’t stress about what others are doing.
4. Stop Going Out to Eat
One of the important choices you can make for your financial well-being is how often you will eat out. There is a drastic difference in the cost of cooking food for yourself compared to ordering from your favorite restaurant. How often you’ll eat out is a tough decision to make, but learn to cook, your wallet will thank you.
5. Find Free Entertainment
In today’s world, everybody quickly subscribes to the next streaming service because they have to have access to exclusive movies and shows. However, these monthly payments stack up quickly and can be a significant source of expenses for you and your household. Go on hikes, bike rides, or play games at home with loved ones; there are many options.
6. Meal Plan
Start meal planning! It takes some effort, but all the money you spend on food can be used to pay off your debt. Try this meal planner to make a plan for yourself that works best.
7. Make a Budget
You have to set a budget for yourself if you want to cut expenses successfully. Make a realistic budget, and don’t forget to include money for entertainment. Your budget will enable you to enjoy yourself still but not impulse buy to exceed your budget. At the end of each month, see how you did and adapt your budget if needed.
8. Stop Investing
Your future self will thank you if you take care of debts now and stop spending money on the future for now. Use that money to pay off debt first; then, you will be able to grow your future finances without worry!
9. Learn to Say No
Never be afraid to say no, either to yourself or family members. While it is essential to take care of yourself, often, there are unnecessary expenses that you find that you don’t want anymore after waiting a week or two.
10. Ask for a Raise
It’s worth a shot! What’s the worst that could happen? They might say no, but at least you tried, and you’ll never know the good that can come from asking.
You can be debt free!
After reading about these resources, we hope you feel confident in your ability to repay your debts and once again be confident in your financial future. Here at MyPaths, we care about the well-being of others and want to do our best to provide the resources to help others out with any struggles they have. We hope you continue to find helpful resources on self-reliance and visit again soon!
Authored by Carter Walch