If you asked me two years ago, how to get out of debt, I would not have an answer. I had bad habits. I never managed money well and did not have any savings. When I lost my car to the bank I knew it was time to turn around my life and do something to go to debt free life. I am still paying my dues , but in the past few years, I have eliminated 20% of my total debt and managed to have some savings too. It’s not that hard if you really want to change.
Follow these tricks to ensure a debt free life:
- Make a savings fund:
Savings while paying debt off sounds like an oxymoron, I know. But I got into this debt in the first place because I had none and had to borrow money with a crushing interest rate. It’s important to keep an emergency fund to put a buffer between you and higher debt as some accidental reason comes up.
I know you are tired of reading this, but making a good, realistic budget and following is not optional. There is no way to walk out of debt without one.
- Side hustle
There are a million things you can do on off times, weekends and holidays to earn some extra cash. It’s of paramount importance to still follow your initial budget and put the extra on 20% savings and 80% debt reduction.
You can save 10-15% of your grocery bill just by showing coupons to the cashier at your local market.
- Stop going out
This one is the hardest. We live for the little things. Going to a restaurant to enjoy a steak once in a while. But you could be blowing your entire grocery budget for a month in one outing. Just stop!