We’ve talked about the battle plan.
We’ve talked about Maximizing Your Income.
But now, it’s time to start applying it all and start finding victory!
While the steps to getting out of debt are relatively simple in principle, the journey is far from “quick and easy” and it can be rough at times while you are in the trenches. You likely spent years getting into the trap that you are in, so it’s going to take some time and effort to get out. But, if you apply the principles here that I show you it won’t take nearly as long as you thought.
Sounds simple enough. This might be the toughest part for most people to put into practice. Bargains and sales are everywhere! New technology and cool toys are coming out every month and it seems like there is always something that’s “new and improved” that you MUST have. You have to learn how to tell yourself, “no”. And, with that, you have to listen to yourself say “no” as well.
Remember: This isn’t going to last forever. The more we increase our incoming cash flow the faster we can obtain victory. That’s what the core of our focus is going to be.
While you are on this journey you are going to have to develop some discipline and only buy what you absolutely NEED for the time being. When you are debt free, you get to buy all the fun stuff you want and not have the headache of the payments that comes along with it. If there is something that does come up, and you question whether or not you need it, give yourself some time. Some people say 24 hours. Me, personally, I ask, “Can it wait until next month?” That way I can determine if it is an actual need. And if it is something that I really need, I can budget for it and not have the headache of more debt or the dreaded overdraft fee!
This is another reason why, at this stage of the game, I don’t keep the savings account where I can easily access it. Because if I know I have $1000 sitting in the bank or an investment that I can quickly grab it, I’m far less tempted to buy anything that I don’t need, because I flat out don’t have the cash on hand for it! Again, if you want that security for emergencies, let a trusted family member who is willing to ask you the hard questions hold on to it for you.
Cut up the credit cards! I cannot stress this enough. Don’t hide them in a drawer. Don’t put them in your safe deposit box. Don’t bury them in the back of your wallet. Cut them up and get rid of them!
Make a commitment to yourself and your loved ones that you will never use a credit card again! If you need a reason why look no further than your debt list! You owe it to yourself to not borrow any more money and not make yourself a slave to your debt any longer.
TRIM THE EXTRAS FROM YOUR BUDGET:
I go over this in detail in the Budget Balancing Tips section. Simply put, always be looking for ways to cut back and trim so that you can cross the finish line even sooner! Every dollar counts!
BOOST YOUR INCOME:
Just like the previous step, you need to find ways to boost your income and get extra dollars rolling in each month to knock that debt out sooner! Check out the Maximize Your Income section for some great tips and programs to help you including my #1 Recommendation for making money online in your spare time.
Another commitment you should make to yourself is to never pay full price again! That’s tough. My wife and I are a team. It took a team effort to get us into our trap, and it took a team effort to break us free from our trap.
One of the many things she brought to the table was her refusal to pay full price for anything! I mean, anything! If there is a deal, a rebate, or a coupon anywhere on the planet for an item, she will find it. Not only will she find it, she will capitalize on it and find ways to stack savings on top of each other. One Christmas I thought one particular store was actually going to PAY HER MONEY to take the product from them!
There are many great programs, apps, and ways to save out there.
THROW EVERY EXTRA DOLLAR TOWARDS YOUR DEBT:
Whether you are choosing to go with the snowball method or paying off the highest interest debt first, this is where it all comes together and the hard work begins to shine. All the budget cuts and the income boosts come together at this point to start sucker punching that debt.
Take your list of debts and start knocking them out one by one. Each one will get paid off a little bit faster than the last. Just make sure you are consistent and follow through.
Celebrate each debt as it’s paid off. Make it fun. Make it count!
CONTINUE THESE STEPS UNTIL ALL DEBT IS PAID OFF:
Wash, rinse, and repeat for success.
CELEBRATE, YOU ARE FREE!
If you remain committed and persistent you will achieve victory. I’m not telling you it’s going to be easy because it’s not. I’m telling you it’s beyond worth it.
What about you? Have you found some great tips that I haven’t listed? Have you had some great victories and success stories that you would love to share? Leave them in the comment section below!
Also, if you feel stuck, trapped, or maybe some personal coaching, you can always contact me directly. Remember, I’ve been there. I know what you’re going through. There is hope, and there is a way out!