When you hear something too good to be true, you’ve learned it’s likely not true. Simple solutions to big problems (like debt) then, seem to be just that… too good to be true.
We like to complicate things. Living a debt free life is very attainable, yet we seem to think it’s an impossibility. Too hard. Only smart and rich people have a handle on that.
Debt is dumb. Lose it. –Dave Ramsey
Good news. You can live debt free. By following some simple steps.
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Buy things you can afford.
Don’t use credit cards. A debit card it just as convenient. By using a debit card, you are spending money you actually have.
You will spend more by using plastic (debit or credit), 12-18% more. One step better than a debit card would be to use cash.
The envelope system will help control your monthly spending.
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Set aside money for emergencies no matter what.
Start with saving $1000. Keep it separate from everything else. This is for emergencies only. Do this as fast as you can.
Now you’ll need a debt repayment plan. Drop your debt as quickly as possible (all but the mortgage). As soon as it’s gone, build up your emergency fund to 3-6 months worth of expenses.
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Create a game plan (monthly budget).
Don’t ever wonder where your money went. Control your money, don’t let it control you. Spend your money with intention.
Get it all down on paper. Budget isn’t a bad word, it’s just a plan.
Organize your bills. You are well on your way now. Give it some time. Putting together a budget requires a few months to perfect.
Change your focus and life for the better. Managed money goes further. These steps aren’t hard. They’ll take time and effort, just like every other good thing in life.
