Every year we complain that we do not have enough money to do anything, yet we find ways to somehow, somewhere find funds to pay for really expensive handbags, really expensive shoes, or really expensive gadgets that we don’t really need nor can “afford”. Personally, I have realized that there are a lot of things that I want and in order to achieve them I have to make some spending habit changes. This year I am planning to do the following and I hope you plan to do the same.
I. Pay off your debt –
The first debt I want out of my sight is my student loans. Sallie Mae has been digging my pockets for far too long and lately I’ve realized that I should’ve done this a long time ago. I’m making it my business to pay off my student loans this year. In 6 months or maybe a year but it shall be done.
II. Double your payments –
You know those paychecks where you have excess money because you’ve already paid the rent, you’ve paid your bills, but you still have a nice chunk of change that makes you feel as if you are “rich” so you decide to go on a shopping spree because you got “money”! Hmm… Not really. While it may seem like you have money, you really don’t, because technically you are drowning in debt, you just don’t realize it. A long time ago I read this amazing book The Automatic Millionaire and the first story in the book talked about a couple that had no debt because they paid everything off. How they managed to do this was by doubling their payments. Doubling your payments can help you get rid of that debt so much quicker. Once that debt is gone, then you can proudly go on your shopping spree and say I’m Rich B$&*%!!
III. Save –
Saving it’s so important. Save to an account that you have no or little access to, that way you don’t spend it. Save $25-$50 every week or every two weeks and by the end of the year utilize that money to buy something you want or to decrease some of your current debt.
I know paying bills is a annoying and paying off debt seems like a never ending cycle. Trust me if you do the tips above you will see light at the end of that “never ending tunnel”. Hang in there and stay focused.