Getting Out Of Debt...So with debt, bad or good it's easy to get down on yourself and kind of in a way blame yourself for what you got into. We're not feeling that way anymore! The only way to shrink the debt and reclaim your life is to get over it. It happened, it's there so let's just own it and pay it all off as quickly as we can. These are the 5 simple steps I have set up for myself so give it a go!
1. Set yourself a realistic goal that you can stick to. For me 2015 is the year for becoming debt free and I have worked out that is a very realistic goal that I can stick to and not slip up.
2. Make a list of ALL your debt with the exact amount you need to pay off (include account fees that will be included within the time you're paying off your debt).
3. Put together a weekly (or fortnightly) budget of your incoming dollars. Account for rent/board, food, gas and all the other everyday slash weekly life expenses.
4. Remember to save some 'other' cash for yourself. It's not going to last and be realistic if you're putting all your 'play' money on your debt. Depends on your life style obviously but $100 of play money is a good amount for me per week. So when I do need say a new foundation or want to go out for dinner with friends I can and don't have to dip into my savings (more on savings soon).
5. Don't give up! Imagine the feeling of being all debt free and well intern feeling free!
Saving Cash...So for saving money I have set up 2 separate savings accounts with my bank.
One is a long term savings account which will help me with my business ventures in the next few years. Which I cannot touch anytime soon and I kind of made sure the bank adds a fee (which I do not want to pay) if I do touch it. Naughty, naughty!
The other is a short term savings account or simple saver as the bank calls it. This account is for unexpected things such as; new tyres for my car or other things that just pop up in life. Which I can use a few times with no account fees coming out.
I have made a plan which I plan to stick to. My plan is $50 each week will be put into both accounts. Yes every week. Louise I do mean every week!
If I don't touch my long term account for a year it will have $2400 plus interest.
Now seriously $100 per week may sound like a massive chunk of cash to save but even the short term account or what I call my rainy day fund, will take away so much stress when you do need things that life just plants on your lap.
It's easy to say just start off being money smart and you'll never have a problem. But I mean as long as we can handle it and not get too over whelmed all will be good. It's just about taking control of your finances and your life. So let's do it together and get out of debt and save some god damn' cash!