Simply Getting Out Of Debt
-“The Total Money Makeover” by Dave Ramsey
Several years ago I had back surgery. The surgery was not successful in alleviating my pain.
When I tried to go back to work I only lasted a couple months before they had to let me go.
It was a couple of years before I began to receive disability, and my Wife couldn’t work because she was taking care of me and our daughter.
For years my Wife and I were racking up credit card debt just to survive.
Here are several getting out of debt tips that We learned:
-Pay Minimums
Finding out what all the minimum payments were gave us a good base amount to start from.
It also let us know how much extra we could pay per month to pay our debt off quicker.
-Pay off smallest to largest first
This was important because it gets the snowball rolling.
As we pay off our smallest credit cards we then had more and more that could go to our larger debts.
-Don’t accumulate more debt
This is extremely important!
We got All of our credit cards and put them away where it was inconvenient to get them.
-Decrease unnecessary spending habits
We decided to temporarily adopt a minimalistic, low consumer, Lifestyle.
If it wasn’t necessary for survival we didn’t buy it.
This also helped with getting a savings account going and acquiring income producing assets.
To build Wealth We want to acquire Assets that provide an Income, like owning a rental property, and Assets that gain in Value over time, like Stock Shares, ETFs, and Cryptocurrencies.
I use Robinhood and CashApp for my investment needs.
-Create a Budget and Automate bill paying and saving
This helped us get a base amount for our expenses so that we could clearly see how much extra could go to credit cards, savings, and investing.
-Talk to credit card companies
We had to do this because We had lived so long without any income our debts were unsustainable. We called each of our credit card companies, told them our situation, and figured out a base amount we could pay them so they wouldn’t go to collections and mess our credit up.
This was difficult to do and very humbling, but it paid off.
-Create a side hustle
This can help to get the snowball rolling faster so it begins to gain momentum!
These days it is extremely easy to create or find a Side Hustle.
Passive income is a good Side Hustle plan because it doesn’t take up huge amounts of Our most valuable scarce resource, Our Time.
If you’re interested in making passive income Stickr is like collecting rent from a mini billboard on your car.
There are so many apps that help people make extra money and are very flexible so We can do them whenever.
From walking dogs, to delivering food, to ride sharing, to doing small chores for people, there’s pretty much an app for everything.
Affiliate Marketing is a good Side Hustle.
ShareASale is an Affiliate Program that I like to use.
Always remember that there are a lot of Affiliate programs out there so do your research and choose the ones that are best for your business.
If there isn’t an app for you create a Side Hustle by finding a need or solving a problem.
I sell products that have to do with my company through different platforms.
If you’re interested, one of my favorite platforms is Gumroad.
Hopefully these tips to help get Us out of debt are helpful!
It’s difficult at first but as the snowball gets larger it becomes easier and easier.
It is also good to remind ourselves that it’s only temporary and our future selves will thank us when All our debt is gone and we can put All our efforts into minimizing expenses and maximizing the accumulation of income producing assets and assets that will appreciate over time.
Comments
Post a Comment