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Have You Heard About Credit Karma’s 30-Day Debt Payoff Challenge?

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Debt payoff challenge

Last week, I chatted about money challenges and how they can help you reach your financial goals. In the blog post, I mentioned that many people “hack” the challenge and switch it up to focus on paying off debt instead, making it a debt payoff challenge.

Well, the folks at Credit Karma have gotten together to put together a challenge. However, instead of spreading it out over the span of the year, it challenges you to lose the debt in 30 days. Here’s how…

The 30-Day Debt Payoff Challenge

Paying off debt, even a small amount, can significantly improve your financial outlook. Like a 30-day weight loss challenge, a 30-day debt payoff challenge focuses on trimming the amount of debt you carry little by little with these steps.

  1. Cancel all of your unused subscriptions. You’d be surprised at how much money you’re wasting month to month. Whatever you’re able to save, apply it to your debt!
  2. Cook at home and use what you have. Eating out is expensive, even if you’re single. Cooking at home saves us around $400 per month (seriously). Also, try using what you have in your house and go as long as you can without shopping. You can use this app to find recipes using ingredients you have in the house.
  3. Skip your morning coffee and drink more water. Starbucks coffee every day is expensive and water is free, it is as simple as that.
  4. Make lists when you shop and buy generic. When you go to the store, go with a strict list and do not stray from it. You should also try to buy generic brands when possible.
  5. Plan a no-spend weekend. Pick at least one weekend a month where you just stay home! You can check a few things off your to-do list around the house and save money.
  6. Turn off the lights and unplug appliances. You can also save by closely monitoring your water and gas usage. Then, put the extra cash towards debt payments.
  7. Consider swapping your car for ride-sharing. In some cases, it may be cheaper for you to sell your car and use Uber or Lyft. If your daily ride-sharing bill will be less than your car payment, insurance, gas, and parking, it may be something to consider.
  8. Look for free things to do. There is something free to do, always. Check out your local library, head to the park, and scope out local bulletins for events.
  9. Enroll in automatic savings at your bank. Always pay yourself first. You can set up automatic transfers to savings when you get paid.
  10. Pay in cash (you may be able to save). At some businesses, you can save money if you pay in cash instead of check or card. This is the case at most gas stations.
  11. Call and negotiate the rates. Take a look at your bills and see if there are any fees you can get waived or interest rates you can negotiate. Then, give the creditor or company a call.
  12. Be thrifty. Instead of getting new clothes at the department store, head to the thrift shop. You’ll be surprised at what you’ll find and how much you’ll save.
  13. Host a yard sale. When you have gone through your closets, host a virtual or physical yard sale. YOu can set them up and promote them via social media.
  14. Make more payments with the money you’ve made/saved. Once you start seeing “extra” money, put it towards your debt repayment.
  15. Compare month-to-month. At the end of the month, compare your finances to the previous 30 days. What has changed? Are there habits you’d like to keep?

Credit Karma outlines all of this across 30 days (you can see the original post here), but I’ve condensed it a bit. Instead of focusing on one new habit every day, you focus on one habit every two days over the span of the month.

Altering the Challenge for Your Needs

Of course, everyone’s financial situation is different. If you need to make more aggressive payoff attempts, you may want to consider a more strict snowball method. If you want to snowball a challenge, you can do that too.

To alter the challenge, you would try to increase the amount you are able to snowball towards your debt each week or month. For instance, you may want to increase your snowball amount by $1 the first week, $2 the second week, $3 the third, and so on.

Others may find it better to increase the total monthly amount like $100 the first month, $200 the second month, $300 the third month, and so on. As you pay things off, the more “extra” money you’ll have to toss at other debts, making it easier to increase the amount you’re paying.

Either way, committing to the challenge and making the changes you need to in your life to pay off your debt can be life-changing. A plethora of individuals on the web have saved and paid off debt thanks to these challenges.

Readers, have you tried a debt payoff challenge? What were the results? 

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3 Free Printable Debt Free Charts to Help You Reach Financial Freedom

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debt free charts

We are looking forward to establishing some awesome New Year’s resolutions for our finances at the end of this year. I’ll be updating you all with that in no time, but it got me thinking about the tools people can use to help them reach their financial goals. Doing some looking around, I found some amazing debt free charts and other ways to stay motivated while tracking your progress.

Debt Snowball Chart

A debt snowball chart helps you manage your debt payoff method. Snowballing your debt means you take any additional money you have and put it towards paying off one of your accounts. You do this in order from smallest to largest amount owed. As you can see below, to organize this debt payoff method, you list the debts in order, along with the minimum payment due and your debt snowball payment.

debt free charts

Using this method of tracking can help you see how quickly you are making progress on your debt freedom journey and keep you motivated. Download an editable worksheet here or print a PDF version.

Color-In Debt Free Charts

If you think tracking the numbers might get boring for you, consider using a color-in debt free chart. You can print these online in various places and use them in various ways.

These color-in charts can help you track your overall debt and how close you are to being debt-free. They can also help you track a specific debt, like a car loan or credit card. You can download various debt free charts online (free of charge) and print them out.

Savings Charts

While it isn’t a debt-free chart, per se, having a place to track your savings can be helpful too. There are a number of savings challenges on the internet that provide charts for helping you track your savings. Saving Advice is a hub of said challenges, including the 365-day money challenge, the 52-week savings challenge, and the 12-week savings challenge. Each of these can be tracked through a chart, like the debt snowball chart above, or you can use the color-in method to track your savings goals.

How to Create Your Own Debt Free Charts

Creating your own personalized debt freedom chart is fairly easy too. If none of the charts above suit your needs, simply follow these steps.

  1. Decide what your long-term goals are for your finances. Before you create a debt-free chart or any other finance tracker you’ll need to decide what you are tracking. Is it savings goals? Debt freedom goals? Investing goals?
  2. Determine how you want to break down the process. Then, once you know what you’d like to track, figure out how you are going to break it down. If you are tracking a debt-free goal, it may be best to track it by every $200 paid off (or whatever increment you decide).
  3. Figure out how you can stay motivated. If you know seeing the numbers will keep you motivated, consider something like the debt snowball chart above to track. Others may be more motivated by seeing a coloring sheet filled in. Whatever motivates you is what you should use.
  4. Start tracking. Once you decide on what will work best for you, start right away. You’ll put yourself that much closer to your financial goals by just biting the bullet and getting started.

No matter where you are in your journey, finding ways to stay motivated and track your progress is important. Consider printing out one or more of the debt-free charts above.

Readers, how do you track your progress? Share your ideas in the comments below!

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My Word For 2020: Productivity

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productivity

Social media has changed the world in so many ways (some good, some bad). One thing it has certainly done (for me) is provided me with new, interesting ways to think about things and approach projects. Recently, I have seen people choose a word to represent the year to come. Many people have chosen words like “hustle” or “positivity.” My word for 2020 is “productivity.”

Why I Chose This Word

Of course, everyone wants to be productive, but I chose this word this year because last year was really busy. Even though I was running around and felt exhausted and busy constantly, I didn’t get as much done as I wanted to. Then I came across this inspirational post on Facebook and it really spoke to me. It said…

Be productive, not busy.

When I read that I was like, “that’s it! That’s what I need to focus on.” It is kind of like that old adage “Work smart, not hard.” I want to focus on improving my everyday processes to reach my goals (both short-term and long-term). Before starting projects, I’ll analyze what the best approach is to protect my time (and money).

Productivity Goals

A lot of my productivity goals for 2020 will require a bit of planning. To start, I’ve begun waking up just a bit earlier every day and jotting down a brief schedule of what I have planned. If you saw my last post, I talked about my main goals for the year and I plan to achieve each of these by being productive and planning out my day.

For instance, to achieve my goal of learning German, I will carve out 10 to 20 minutes every day for a quick lesson. To be able to read a book a week, I am scheduling about an hour a day devoted to that alone. My goal of practicing self-care every day will be achieved by waking up just a little earlier and taking care of my skin and practicing yoga.

Our main finance goal of paying off at least half of our debt will also be helped along by being productive instead of busy. Last year, we were a bit frantic with our financial plans. This year, we will track every penny and have a set plan for paying off our accounts.

All in all, I am hoping that setting a goal to be more productive (and less busy) this year will free me up to do more of the things I enjoy, like spending time with my husband, hiking, reading, doing makeup, and crafts. As I’ve stated in the past, a huge part of me being successful in life, and in my finances, is being able to achieve a balance. That’s why I’m choosing to be productive and NOT busy this year.

Readers, do you choose a word to describe your year? What is yours?

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Determining Your Maximum Debt Limit: How Much Debt is Too Much

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When you look back on what you have been able to accomplish in your life, chances are that it was all possible due to debt.

Without a loan, you wouldn’t have owned your first home.

Without a loan, you wouldn’t have driven that first car of yours.

And without a loan, you couldn’t have earned that first degree.

In other words, debt can truly be a good thing. However, according to the old adage, you can have too much of a good thing. If you feel that you have piled up too many loans, there are tips to help you pay off your debt in a smart and efficient way.

So, how much debt is too much? Here is a rundown on how you can determine your maximum debt limit. Let’s get started!

How Much Debt Is Too Much?

A good way to determine how much debt is too much in your situation is to look at your ratio of debt to income.

To get this figure, you should divide your recurring debt each month by your gross income each month. You will then express this figure as a percentage.

Your monthly debt includes anything that you have to pay each month. This includes, for example, your mortgage, credit cards, car payment, and student loan.

Meanwhile, your gross income is the amount of money you bring home prior to paying taxes, Social Security, and insurance.

Example of Debt-to-Income Ratio Calculation

If you have $3,000 in current debt and generate a gross income of $6,000 per month, your debt-to-income ratio comes out to 50%. Unfortunately, this is not a good figure.

Many lenders generally like to see ratios of around 36% maximum. In fact, some financial advisors state that ratios of more than 20% are indicators that consumers are borrowing too much. Still, others say that near 30% is the magic number.

What does this tell us? It tells us that there’s no black-and-white answer for how much debt is too much for you. However, if you find that your disposable income each month seems insufficient, you’re probably carrying more debt than you should.

How to Help Yourself

If you’re wondering whether to get that next loan, ask this question to yourself first. “How much debt is too much?”

There are many different reasons to get a loan. Irrespective of the circumstance, you must eventually pay back the borrowed money. Therefore, it is always advisable to not borrow more than you need and your repayment ability.

When you start feeling the burden of too much debt, consolidating all of them into one can help you simplify your finances. In some cases, you may even be able to reduce the monthly payments.

The next time you decide to get a loan, determine your requirement, check about your ongoing debt payments and figure out how much you need. There are lenders who also help you to determine the ideal loan amount and then design a suitable repayment term for you.

Always find the right fit lender and loan fit for your financial situation.

Image source: Institute for Money and Technology.

Is Financial Peace University Worth the Money?

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financial peace university

My husband and I have been toying with the idea of starting Dave Ramsey’s Financial Peace University in the new year. Both of us are just tired of being in debt and have listened to Ramsey’s show quite a bit. While we are aware of the seven baby steps he suggests to help you get out of debt and on the road to financial freedom, we can’t help but think fully devoting ourselves to the FPU lessons and lifestyle change might help us even more.

This has driven us to start researching more into what FPU is, how much it costs, and whether or not it’ll be worth the investment for our family (and yours).

What is Financial Peace University?

If you haven’t already heard of it, Financial Peace University is a series of lessons put together by Dave Ramsey, Rachel Cruze, and Chris Hogan to help people budget, become debt-free, and financially independent. It includes a plethora of budgeting tools, livestream videos, and pre-recorded money lessons from experts.

FPU uses these tools and videos to help people navigate Dave Ramsey’s baby steps and has helped millions already. You may be thinking, “I’ve seen the baby steps online for free.” However, FPU provides additional resources and support to help you stay on track. So, how much does it cost and would it be worth the investment for your family?

How Much Does It Cost?

Financial Peace University costs $129 the first year. After that, it renews at $99 per year. If you’re on a tight budget, that may seem like a lot of money (I was a bit turned off by it at first). The results of the courses provided by FPU can’t be argued though. It has really helped a lot of people.

Included in the price are nine video lessons that you can watch at home or join a local group. You’ll also get access to EveryDollar Plus (a $99 value), Ramsey’s Debt Snowball Calculator, access to coaches for questions, livestreams from experts, as well as additional benefits and courses.

On top of that, there are different bundles for different situations. For instance, there is an FPU Marriage bundle we are considering that is $139 for the year. This includes some literature about how to manage the baby steps as a married couple. Other bundles include an EveryDollar Budgeting bundle, FPU + Total Money Makeover bundle, and an FPU + Everyday Millionaires bundle.

The Baby Steps

If that pricing seems a bit steep, Ramsey gives out his seven-step program essentially for free. You can find the baby steps on Dave Ramsey’s site without paying a penny. Here they are…

  1. Save $1,000 for your emergency fund.
  2. Pay off all of your debt (outside of your mortgage) with the debt snowball method.
  3. Save three to six months’ worth of expenses to fully fund your emergency fund.
  4. Invest 15 percent of your income into retirement.
  5. Put away money for your child’s college fund (if you have children).
  6. Pay off your home early.
  7. Build wealth through investments and give to charity.

These steps have helped more than 5 million people get out of debt and better manage their money. The $129 price tag on FPU can make some people a bit uneasy. If you’d prefer to start out with something smaller, Ramsey also offers a Baby Steps bundle on the site. The bundle includes the following:

  • A hardcover of Ramsey’s book The Total Money Makeover
  • Chris Hogan’s Retire Inspired Audiobook
  • Rachel Cruze’s Love Your Life, Not Theirs Audiobook
  • The EveryDollar Guide to Budgeting – a PDF ebook
  • A starter envelope system
  • 1 free month of the EveryDollar Plus budgeting app ($10 value)

However, it isn’t the entire program. With Financial Peace University, you get additional resources and help to reach your money goals. But it is worth the money?

Is It Worth the Money?

Whether FPU is worth it or not for your family really depends on what keeps you motivated. Financial Peace University helps guide you through the seven baby steps through video lessons and pep talks. As mentioned above, you also get access to other tools to help better manage your money. But you have to take it seriously for it to really work.

For us, the tools, access to coaching, and regular live streams (as well as Facebook support groups) may be worth the money. We are motivated by engaging with others around our goals and could use new tools to help center our focus on managing our money. That being said, $129 is a fairly small investment if it works for us and helps us get out of debt and start living our lives.

Do you think it would be worth it for you?

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When is Debt Settlement a Good Idea?

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debt settlement

An astounding 15 percent of Americans believe they will be making payments on their credit cards until the day they die. On top of that, one-third of Americans believe it will take up to 20 years to pay off their current debts. Because of the overwhelming amount of debt most people living in the United States carry, many people find themselves wondering when debt settlement might be a viable option.

Dangers of Debt Settlement

While finding a way to settle your debt may be tempting, it isn’t always the best way to handle your finances. Essentially, a debt settlement company will negotiate a payoff amount for your account. You will no longer pay the creditor and, instead, will begin making payments to the settlement company. However, the process of working with these companies can actually hurt you.

During the process of working with the debt settlement group, you will have to cease making payments on your debt. These companies also don’t typically don’t start working with people until their debts have been past due for months. This means that your credit score will likely tank.

It also isn’t as good for your credit score as paying the account off in full. Normally, when an account is settled, it will be noted on your report as “Paid-Settled,” which is good. It doesn’t have as good an impact on your credit as a “Paid in Full” status though.

Additionally, using a debt settlement group can also make you feel like not paying your debts is okay. You aren’t really learning much about changing your habits to improve your long-term financial health.

When is Debt Settlement a Good Idea?

That’s not to say that debt settlement isn’t a good idea for some people. It is a necessary evil in some cases to avoid filing for bankruptcy or going into more debt with neverending interest being tacked onto your accounts.

Instead of settling, you may want to consider getting debt counseling. Contacting someone who is an expert in dealing with debt can help you see a way out of your mess. Sometimes being in debt makes it difficult to see a way out. A counselor can help you come up with a debt management plan and assist you in coming up with a doable plan.

If debt counseling isn’t for you, consider opening up communication with your creditors. Talking to them about your options may open another door for you. Many creditors will allow you a few months off of making payments for hardship. Give them a call and see what you can do.

And, if all else fails, debt settlement can be a good choice. I personally settled a debt with a third-party company recently. It helped me knock that off my credit and received a letter that it was paid in full. It helped my credit score tremendously and put a fire under me to get it paid off. If you’re already behind (like I was) it can be a good option.

Readers, have you ever settled a debt? What was your experience?

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Should You Invest To Pay Off Debt?

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Invest to pay off debt

Investing while you still have a debt to pay off is a controversial topic amongst debt-free communities. However, many people still find it difficult to climb out of the debt holes they’ve dug. Many have to search for side jobs, part-time gigs, and other ways to pay off what they owe. In some cases, individuals have started to invest to pay off debt. Is this a good way to reach financial freedom?

Investing When You Have Debt

If you follow the teachings of Dave Ramsey or any other debt-freedom-focused financial advice, you know that most don’t recommend you invest at all until all your debts have been paid. This is typically because the quicker you pay off your debt, the sooner you’ll be able to put all of your extra resources into investments, retirement planning, and other financial goals.

In fact, paying off your debts early may be one of the best investments you can make. Paying off your mortgage early, for instance, has a guaranteed return on investment. You’ll save money on interest. However, the same guaranteed return isn’t there when you are investing. In some cases, you may even lose money that you couldn’t really afford to (especially if you are holding debt).

Should You Invest to Pay Off Debt?

I frequent the debt-free subreddit looking for good advice and interesting topics. One Reddit user took to the forum to ask others about their thoughts on using investments to pay off debt. Essentially, they were wondering if they could invest to pay off debt, meaning they wanted to make minimum payments on their debts while using any other money to invest in the stock market. Then, eventually, they’d cash out and pay their debts in full.

Most, if not all, Redditors advised against doing this. Here’s why…

  1. Your investments won’t outpace the interest on your debts. You’ll wind up paying way more interest over time if you are waiting for investments to grow.
  2. Holding debts while you try to invest is counterproductive. Investments can provide good passive income and even help you prep for retirement. Unless you pay your debts though, you’ll still be in the red.

So, all in all, it isn’t advisable to invest to pay off debt. Instead, use all of the “extra” money you have to snowball your debts. Once you’re finally debt-free, then look into investing your money.

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When Can You Be Taken To Court Over Debt?

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Taken to court over debt

Repaying your debt is stressful enough without having to deal with debt collectors and, even worse, lawyers. You may have heard horror stories of people being taken to court over debt. If you’re like me, you probably push those to the back of your mind. In some cases, those stories don’t even seem real. However, you can be taken to court over debt and millions of people have been.

Are You in Danger of Being Taken to Court Over Debt?

You can be taken to court over a number of different kinds of debt, including medical debt, auto loans, business debt, and even credit cards. The only debt you’re not likely to be taken to court for is a foreclosure. In most cases, the mortgage company is able to resell the property and you won’t be taken to court for that.

One of the best ways to stay on top of whether you are in danger of being taken to court or not is to open your mail. Believe it or not, many people just throw away mail that comes in. Sometimes people throw away important notices regarding debt. If you do that, you could land yourself in court to settle those debts.

What To Do

Finding out that you are in danger of being taken to court over debt is enough to send your anxiety through the roof. The first thing you should do after you find this information out is to contact some kind of legal aid. Some lawyers will offer you a discount or even a free consultation for your problem. In some cases, lawyers will provide their services for cases like these pro bono.

Next, be sure you do research on what the statute of limitations is on the debt you owe is. For different debts, the amount of time changes. It also varies from state to state. Additionally, your “time” can restart in some cases. You’ll want to be sure you’ve educated yourself about these limitations before getting too upset. It may turn out that you are no longer responsible for the debt (though you should never have that mindset).

Once you’ve done those two things, decide on how you wish to move forward. If you cannot pay the debt, you may be able to work out a settlement or payment arrangement within the court. Take a step back and assess what the best plan of action will be for you.

Readers, have you ever been taken to court over debt? How did you handle it?

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What is the Best Debt Advice?

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debt advice

People are pretty much always willing to offer up advice, even when you haven’t asked for it. Throughout my debt freedom journey, I’ve received advice from a number of individuals, but how do you decipher what advice is good and what you should let go “in one ear and out the other?” Here’s how to determine if the debt advice you’re receiving is something to consider or not.

What is the Best Debt Advice?

So, there’s no best advice when it comes to paying off debt. Everyone’s finances are different, therefore, their approach will need to be different. However, there are certain pieces of debt advice that have consistently helped people.

  1. Make a budget and stick to it. Believe it or not, budgeting for repaying your debt makes it easier to stay on track. Not to mention, having a solid budget will keep you from overspending, which is what causes most people to go into debt in the first place.
  2. Avoid taking on any new/additional debt. If you have become accustomed to swiping your credit card for things, this can be difficult. Consider hiding it or even cutting it up. Additionally, you shouldn’t take out any loans to consolidate your debt. It will almost always prevent you from making significant progress towards your goal.
  3. Set realistic goals for yourself. Many people fail at making realistic goals when it comes to their finances. If you stretch yourself too thin, you’ll cave under stress. Be sure to budget money for fun things and set realistic time frames for debt and savings goals based on that.
  4. Contact your lenders if you’re having trouble paying. We’ve all had issues making payments at some point. The best thing you can do if you’re struggling to repay a lender is to give them a call. Most will work with you on repayment and some will even give you a break on late fees, etc.
  5. If you can’t pay cash, you can’t afford it. Cash is king. If you don’t have the money in the bank, or you haven’t budgeted for the purchase, you can’t afford it. It’s that simple.

While these five pieces of debt advice are solid, not everything everyone tells you is going to help you pay off your debt. Here are a few things to consider.

How to Determine What Advice is Good

Be wary of anyone telling you there’s a “cure-all” to your debt problem. No single approach is good for everyone. You’ll need to cater your debt freedom journey to your personal needs. It may be worth looking into certain approaches if what you are doing isn’t working, but what works for someone else won’t always necessarily work for you.

Additionally, don’t listen to anyone telling you that taking out more debt to consolidate or further your progress is a good idea. You will only be hindering your ultimate goal of being debt-free. Instead, consider ways you can cut spending or earn more to help pay off your debts.

The Best Piece of Advice I’ve Ever Received

Since starting my own debt-free journey, I’ve received all kinds of advice from several different people. Some individuals have suggested consolidation loans, others have said to use all of my savings to pay off my debt, and one person even told me that I didn’t have to pay certain debts off (seriously).

The best piece of debt advice I’ve ever received, however, was this: be patient with yourself. There is no roadmap to debt freedom. The journey looks different for everyone and we all have to feel our way through things. For us, we’ve had to learn to live on one income, hide the credit cards, and focus on living a cash-only lifestyle. That may not work for everyone, especially for families with children.

It is easy to get frustrated when you aren’t seeing progress and it is even easier to simply give up. Finding patience for your journey and yourself is key to becoming debt-free.

Readers, what is the best piece of debt advice you’ve ever received? 

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Learning to Live on One Salary

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live on one salary

In my last update, we celebrated having paid off $20,000 or so in debt within one year. However, there have been a lot of changes with our cashflow in the house that has hindered the speed of that continuing. Mostly, we are down to one (main) salary.

My husband is breaking off on his own a bit and has been considering starting his own business. Because of this, cash flow on his end hasn’t been consistent. We’ve lived on one salary multiple times in the past, but every time it is different. Here’s how we’ve learned to live on one salary (and benefits of doing so).

Learning to Live on One Salary

Living on one income isn’t as hard as it sounds. First, you have to come up with a budget that only requires a single budget. For us, it is my income because it is more stable. Your family may want to choose the larger (or smaller) income, depending on your financial goals.

If you are over budget when you tally up your expenses, see where you can cut costs. Do you really need Hulu, Amazon, and Netflix? Or, if you’re looking for a bigger decrease, consider downsizing to a smaller home to better fit your new one-income budget. Others may find it beneficial to move to a more pedestrian-friendly area to cut down to one (or no) car payment or walk more places. If you’re comfortable doing so, you may even consider taking in a roommate or renter.

Consider giving up your indulgent behaviors like going out to eat, junk food, and other items as well. You certainly don’t need to eat out every Friday and spend tons of money on junk foods. This will help cut down the cost of food in your budget as well.

Why You Should Live on One Income

You’re probably thinking, why would anyone willing to live on a single income? It can be difficult and, at times, hinders you from being able to do everything you want to. It can also help you achieve some of your financial goals and feel more secure with your finances as a result.

  1. It makes saving money easier. Simply save your spouse’s income instead of spending it. If you can live on one income, why not bank the rest? You can create a strong emergency fund.
  2. You can use the cash for debt repayment. If you want to focus more on your debt payoff plan, living on one salary can make that more doable as well. Learn to live on one spouse’s income, then use the second to pay off what you owe.
  3. Financial security increases when you have a surplus of cash flow. You have more money than you need, why wouldn’t you feel more secure? You have the ability to invest in your future, pay off debt, and increase savings. It can truly pave the way for financial freedom.

Not to mention, if you live on one salary, you will always be ready if something happens to one of your jobs. You’ll have some savings, and you will be able to continue your current lifestyle until your spouse finds a new job (or starts earning more).

Our Debt Freedom Progress

live on one salary

So, while we are adjusting to living on a single income again, our debt freedom progress has been slow. However, today we paid the final $175 payment to completely pay off a credit card. That will free up an additional $175 for us each month to redirect towards other debts and savings.

In the next few months, we will be paying off other accounts and see our debt freedom progress continue. I will be in a wedding in October, which will be a small cost (around $200 total). We have prepared for that cost though. Both of us are planning to spend the holidays at home as well, to cut down on travel costs.

Readers, have you lived on one income? Tell me about your experience in the comments!

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