7 Killer Tips for Getting out of Debt 

Regardless of the size of your debt or how you accumulated it, it has to go. If you’ve never been debt free before, you can’t imagine the emotional feeling of freedom you will experience! If you chose that reason alone to motivate you to get out of debt, it would be worth it. At any rate, I believe this post will be both inspirational and practical.

How can you begin to tackle that $5,000 medical bill and stay on top of your already tight budget? Or will you ever be able to afford making extra payments on your $50K student loan debt? It’s all possible, my friend! And here are some great tips to start tackling that debt today!

  1. Get serious. As Dave Ramsey would say, “Get gazelle-intense!” Half heartedness will not help you get out of debt any faster. If you are determined, the battle is yours!
  2. Control yourself. Yes, you need to control your spending, but usually it comes down to controlling yourself. If you don’t have it, don’t spend it. Plain and simple.
  3. Devise a plan. Planning and thinking are some of the hardest tasks there are, which is probably why so few engage in them. Create a working budget and figure out how you can live under your means while you pay off this debt.
  4. Save $1,000 for emergencies…before you start trying to pay off your debts! It might sound crazy, but you NEED this $1K for inevitable emergencies. You should NOT go in to more debt trying to pay off your new set of tires, your new engine, or whatever it is that breaks while you’re knocking out your debt. And saving $1,000 feels pretty good, too! Just don’t touch it for anything other than emergencies.
  5. Throw every spare penny at your debt – every chance you get! This is probably where I get a little too crazy. I can bundle up with 5 layers of clothing to avoid running the heat, and I can wear my shoes to a pulp, and the list goes on. But when you’re trying to live a debt-free life, you will absolutely have to make some changes to your spending (if you didn’t have to make changes, you would probably already be out of debt, right?).
  6. Start with your smallest debt and only work on paying off that one debt. Dave Ramsey explains it so much better than I, hence why I included tip #7. You will gain so much momentum from paying off one single debt at a time and then working on each debt – one at a time, from smallest to largest – until they are all gone.
  7. Read Dave Ramsey’s book, Total Money Makeover. I can’t say enough about this book. I know it has helped so many people get out of debt, including me and my husband. While some of the topics are long-term, it will help you get a great perspective on what financial stages you should be working on and in what order.

“The borrower is servant to the lender,” according to the Bible. Not only do I want to be a good steward of what God has given, but I don’t want to spend my life trying to pay people back, constantly trying to catch up.

Again, no matter your amount of debt, start today with baby steps like these so that you can be on your way to financial freedom!

20 Items to Remember to Budget!

Ever built a budget for the month and realized later that you forgot about something so obvious? Been there! If you’re like me, you had an extensive meeting with your spouse to make sure every detail was cared for, but yet something came up that you probably should’ve expected and should’ve discussed in that “extensive meeting” and just didn’t.

Well here’s a list of basic things to be sure to add to your budget so you can build your best budget possible. It works for our family of 2, but I think it will be a decent guideline for any size of family (food is still food and bills are still bills, right?). I’ll start with the obvious and move to the less common.

Side note 1: we use a free app called Every Dollar for our budget, and we love it!!

Side note 2: get out your calendar for the month so you have an idea of the extra items like birthdays you’ll be spending money on!

Side note 3: for extra tips on saving money on your bills, check this out!

Here we go! (and if you use Every Dollar, you can choose to have your budget copied from last month, create an entirely new one, or edit your last month’s budget for the coming month…so no need to remember these items each time!)

1. Mortgage/rent

2. Food – groceries and restaurants (will you be having company at all this month?)

3. Gasoline

4. Electricity/gas

5. Water/garbage

6. Phone bill

7. Car insurance

8. Car maintenance/savings for car maintenance

9. Clothing – dry cleaning or needed items

10. Entertainment (Don’t forget your friends asked you to go to that show with them!)

11. Gifts (Whose birthday or baby shower is coming up?)

12. Emergency fund (for a flat tire, sudden death in the family, etc; $1,000 is a good goal for this!)

13. Savings

  • Short term funds (for things like computers and vacations that need more than one month’s budget to purchase)
  • Long term savings (for a house, a new car, bigger emergencies; Dave Ramsey suggest saving 3-6 months worth of income for the bigger unexpected things)
  • Retirement (don’t rely only on the government, please!)

14. Life insurance

15. Health/health insurance

16. Travel

17. Home maintenance

18. Homeowners/Renters insurance

19. Education

20. Miscellaneous

Bet you didn’t think the list could be so long for “basics!” Let me know if I missed something!

Photo credit: Pictures of Money | Cropped