Being Debt Free – Oh the Freedom!
“I’m in debt. I am a true American.” – Balki Bartokomous
Many of us aspire to get ahead in life, but then things happen—it seems like, no matter our financial situation, debt sneaks into our lives and holds us back. Just when you think you’ve got some extra money saved, another bill pops up that needs to be paid off. Sound familiar?
The harsh reality is that many people are struggling with all kinds of debt. From credit card balances to student loans to taxes to car loans to medical bills and everything in between, being in debt has become a way of life for many of us. Add to that the fact that you have a family to take care of and the situation becomes even more stressful!
The good news is that you’re not the only one drowning in debt. The even better news (no bad news here!) is that you don’t have to accept it as a way of life. You have options to get out of debt and actually start saving money. With some discipline, clever thinking, and the right attitude, you and your family can be well on your way to experiencing the freedom of a debt-free life!
Tips for Becoming Debt Free
1. Create a Realistic Budget
Before doing anything else, you need to establish where you are financially. Everything you spend money on has to be accounted for—whether it’s bills, kids’ daycare or extracurriculars, food, or entertainment—record each item and the amount of money you spend on it every month.
After compiling a comprehensive list of items to include on your budget, decide what you and your family can do without (cable, for example). Oftentimes, it’s only when we see something in writing that we realize how much we spend on unnecessary things.
Speaking of putting things in writing, don’t forget to make a list of your debts and face them head-on like the strong mom that you are. Once you complete this exercise, you’ll be able to determine how much money you need to dedicate to debt repayment each month. This will help you envision the best plan for reallocating money from that list of unnecessary expenses (like your unused gym membership) to pay off your debt.
Look at that, your total debt is decreasing already!
2. Stop Borrowing!
Stop signing up for credit cards.
Forget about test driving that car you’ve been eyeing but really can’t afford the car loan for.
Remember, when you borrow, you’re only digging yourself further into debt. The more you dig, the longer it will take to get out!
3. You Can and Should Start Saving
Think of it as an emergency fund.
Life happens—If an emergency comes up and you have no savings, chances are you’re going to turn to credit cards to fund those emergencies.
Start small and work your way up. As a mom, ensuring that you can take care of the kids, particularly in an emergency, is undoubtedly one of your top priorities. Savings will be the safeguard between you and endlessly mounting debt.
This way, you can get out of debt and have peace of mind that you’re (somewhat) prepared for emergencies.
4. Pay off the Smallest Debts First
Let me tell you why:
You’ll be able to remove smaller debts from the list faster than that big loan with insane interest rates.
Once those debts are paid off, you’ll be able to contribute more to the bigger loans and pay them off faster.
Seeing debts removed from your list will give you an incredible confidence boost. Good job, mom! (Go ahead and do your happy dance!)
Don’t forget to automate your payments—the more automatic and effortless you can make the debt repayment process, the better.
Working From Home – A More Permanent Solution
There’s so much more you can do to become debt free. Getting discounts on your car insurance, cutting back on your lifestyle, and meeting with a financial advisor are all smart steps to help get you on the right track. However, if you want to permanently and quickly leave your debt-filled days behind you, then becoming a work-at-home-mom is an excellent option.
Ultimately, your ideal situation is having an ever-increasing income. And if you’re in the corporate world, you know that a traditional job doesn’t offer immediate financial growth.
Working from home has that earning potential. As a work-at-home-mom, you have the power to double or even triple your earnings from one month to another! You can take an active step towards becoming debt free—for good!
Our goal at Moms Making Six Figures is to give moms and their families the freedom to do what they want without feeling tied down by financial burdens. For more details on how to live a permanently debt-free life, visit our website at momsmakingsixfigures.com or call us at (858) 837-1505.