One of our dreams that became a huge priority for us was getting out of debt when we realized that money was such a big factor that was preventing us from making our dreams a reality. In this week’s episode on the podcast, we shared the things that we are doing that is help gin us move towards getting out of debt.
- Sit down and total up how much debt you have. Give it an actual number! Ours was around $90,000 in total not including our mortgage.
- Research the best way to pay off debt. We focused on our school loans first, followed by car loans. Do what works best for you. Dave Ramsey is a popular finance figure with his Financial Peace University program that we hear a lot of people have success with but we have no experience ourselves.
- Make a budget and stick with it. Making one isn’t hard, it’s the sticking to it part because who doesn’t struggle with self-control. We share our tips on how we made our budget.
- Identify things that could be cut or decreased. Everyone has things, your food bill is a good place to start.
- We committed to no-spend challenges frequently. We used the money that we saved towards principal payments.
- Monthly budget parities that kept us as a couple on the same page with each other, but making it clear how we were doing.
- Diving deep into the tips and tricks that applied to us that the financial independence (FI) community have shared specifically in the multiple facebook groups that they have.
- Changing up our lifestyle by incorporating more simple, intentional, minimal and frugal practices.
- Making principal payments. We used these on our mortgage, school loans, and car loans. This made a huge difference that we were so surprised about.
- Using our tax refunds to make principle payments instead of spending it all on stuff.
We started only 4 years ago taking our debt seriously. In that time, we’ve been on a single income not making huge amounts of money. We are excited that by 2020, we will be completely debt-free! We hope to inspire you that if we can do it, then so can you.
Leave us a comment to tell us what tactics you are using to get your debt under control!