A friend of mine asked me to picture myself three years from now when I’ve overcome most of my debt issues and I’m advising someone else how to get out of debt.
What would I say? What advice would I give to get out of debt?
Well, this is entirely a GUESS and feels more like a wish list than a plan but here’s what I told her I think I would say to someone like me when I’ve got this all wrapped up and handled:
✔️Get rid of every non essential expense and do it over and over again because they creep back so easily.
✔️Watch your credit score, track all bills and build up an emergency for both business and personal ASAP (start with $500 and move to $5000 each).
✔️Cook and eat at home 95% of the time. If you go out for social spend no more than $15 (not $25-$50 like normal).
✔️Look for every way you can to reduce existing bills including paying annually, finding cheaper solutions, be more frugal, shop thrift, etc.
✔️Increase your income and look for every opportunity to add recurring income.
✔️Don’t be too good for hourly work or to take on projects.
✔️Make more than you spend!
✔️Automate bills, debt repayment and investments (when you’re able to keep a minimum account balance so you don’t pay overdraft and NSF fees).
✔️Organize your home and keep it clean because that costs you time, money, productivity and stress. Do a little bit every day until it’s done then maintain.
I hope that helps you make a plan and move forward with it. Not in three years from now but today.
Signed,
A Debt Blogger
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