Having debt over our heads is like a bad houseguest that just won’t leave! We keep trying to hint they should leave but they aren’t getting it. We need to reduce our debt and maintain it!
Getting out of debt is life-changing. It isn’t an easy thing to do. It takes hard work and dedication.
It’s more than simply paying off some credit card bills. It requires change! Change in our daily life and our habits! It can be hard to break these habits. But it will be a life-changing result if you can accomplish it.
6 Ways To Change Your Life:
1. Change your spending habits
As humans, we are creatures of habit. We like to go to the same coffee shop (Starbucks!!) we like to shop at the same store, on the way to work we like to pick up the same overpriced breakfast sandwich. If we want to reduce debt and maintain it to achieve a debt-free life, we need to change these habits.
Start your morning habit, instead of getting a coffee and breakfast on the way to work, why not have coffee and breakfast at home! I know, I know this means you have to make it yourself but trust me, the results it will make in your bank account will be great! At lunchtime, instead of going to your favourite food truck across the street, brown bag it! Make a
sandwich at home and eat at work. For dinner, make a home-cooked meal.
This may seem like a lot of work and time, but it will produce results! You will see an improvement
in your daily spending habits.
2. Make a budget
Make a practical budget. Think of your needs, not your wants, but your needs. Housing/rent,
food, healthcare, insurance, education. Budget for these things first. If you have room in your budget afterwards, then hey, add in that Grande Soy Latte from Starbucks! Start with your needs.
Credit cards can be very tempting. Start paying with cash. That will reduce the temptation to impulse buy things. Why? Because you will have a limited amount of cash.
Eliminate things like shopping unnecessarily, dining out, electronics. Does this mean you can never go out to eat again?? You’ll never buy a new phone or computer?? No, but while you’re trying to get your spending under control or lessen your debt, it would be smart to cut them out until you can afford them.
3. Check your budget
Once you have set up your budget does that mean you’re done? No! check your budget frequently. Make sure you’re staying on track.
Try using a budget app. Enter all purchases in the app and what category they fall under. This will help you to keep track of where you spend the most money and what you can cut down on.
4. One credit card
We live in a world where everyone has multiple credit cards. Hide them! Get rid of them! It’s wise to only keep one credit card in your wallet for emergencies. Paying with cash will keep your spending under control. There will be fewer impulse buys and more savings at the end of the month.
5. Shop with a list
I don’t know about you, but when I don’t have a list at the grocery store, I buy everything! Make a list. This will help focus your attention. Stick to the list. Get in get out. Also, don’t go when you’re hungry! Then you will for sure buy more than the necessities.
6. Look around your house
We fill the space we are in. See if there are things that you don’t need anymore. If we collect some things that we don’t use or need anymore, we can have a garage sale. Whatever you make is extra! Reward yourself with a nice Soy Latte. You can also use the money to help pay off any debt that you currently have.
In conclusion…
Being debt-free isn’t easy. It’s a commitment. It’s a life-changing commitment. It might seem like an unhappy life having to cut all these things out. But it will be very beneficial when you look at your bank statement at the end of the month and you’re in the green instead of in the red!
When you reduce your debt and maintain it this does not mean you have to cut things out forever but making a budget and being more reasonable on what you CAN afford will help you in the long run.
It’s not always easy to do it on your own and you don’t have to! With Clear Benefits we offer an Employee and Family Assistance Program.
