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’13 Reasons Why’ Being Debt Free is Awesome (and I Can’t Wait for It)

April 3, 2019 | Leave a Comment

Debt freedom. Those two words literally make me grin ear-to-ear, and who wouldn’t? Can you imagine what your life will be like once you’re no longer being crushed under credit card bills and car notes? Here are 13 reasons why being debt free is awesome (and I can’t wait to get there).

13 Reasons Why Being Debt Free is Awesome

Although I haven’t gotten there (yet), I’ve heard plenty of people talk about how great it feels to have the heavy burden of debt lifted off your shoulders. Here are a few reasons why it feels so awesome…

1. You are free to truly live.

When you aren’t bogged down with your finances you are free to enjoy other things in life. Maybe the stress of your debt made it impossible to go on vacation or practice good self-care. Without debt, you’ll have the ability to do what you want to do when you want to do it.

2. You feel accomplished.

Most people who have accomplished the feat of debt freedom say there’s nothing else like it in the world. Once you’ve paid off your last account, the sense of accomplishment is astounding. It is enough to boost your self-esteem and help you gain confidence where your money is concerned.

3. Being debt free strengthens your marriage and relationships.

This is especially true if you worked on being debt free with someone. For instance, my husband and I are working together on our debt-free goal. At the end of this journey, we will come out stronger (and avoid debt like the plague).

4. You’ll have more money.

When you’re not paying on your credit cards or other debts every month you’ll have more cash flow. At first, it is important to take this extra cash and fully fund your emergency savings (3-6 months of expenses). After that, you can spend freely, invest, and build wealth.

5. Debt free folks have more fun.

It is true! You’ll be able to take that vacation you’ve been postponing without worrying about being able to pay the bills. Not to mention, you won’t have to check your bank account before you go out with friends. You can have peace of mind where your finances are concerned.

6. The feeling of financial security increases.

Being debt free is awesome because it makes you feel more secure in almost every aspect of your life. Financial security increases, security within relationships, and feelings about yourself all become more positive.

7. You can make changes you’ve been wanting.

Many people who become debt free find themselves changing jobs or moving once they’ve reached their financial goal. If you’ve been putting off going after your dream job or moving to the beach, becoming debt free can help you make those changes.

8. Now you have the opportunity to build wealth.

Now that your debt isn’t weighing you down you have the opportunity to begin saving, investing, and building wealth.

9. Maybe you can retire early!

While you’re building wealth, you’ll also be building your retirement fund. Most people who become debt free early on find they are able to retire early.

10. There are fewer risks and more peace of mind.

When you’re holding on to a lot of debt there is always something worrying you. With less liability hanging over your head you’ll have peace of mind.

11. Your stress levels will drop significantly.

Because of the peace of mind you’ll receive from being debt free, your stress levels will drop. You won’t be biting your nails over the next credit card bill or whether or not your car is going to be repossessed.

12. Being debt free is awesome for your mental health.

All of this has a profound impact on your overall mental health as well. Many people find they are no longer depressed, have more energy, and feel happier. (Remember, debt is not a death sentence.)

13. You’ll be able to live your best life being debt free.

When all is said and done, paying off your debt will free you up to live the best life you possibly can. You will have the freedom to do whatever it is you want to do (within reason, obviously). Take the trip you’ve always wanted, send your kids to college, retire early, and live the way you want to.

For those that are already debt free, what is your favorite part about it?

How to Start Paying Off Debt, According to Dave Ramsey

April 25, 2018 | 1 Comment

Dave Ramsey has been a go-to for personal finance advice for decades. Thousands, and possibly even millions, of people, have turned to him for what they should do next. Ramsey’s specialty is reaching financial freedom, which we all want. The first step to achieving financial independence is paying off your debt.

That sounds way easier than it is though – so, how do you start paying off debt?

In the video above, a caller details his family’s financial struggle. At the time of the call, they were at least $96,000 in debt and had no clear plan of how to pay it off. Ramsey outlined the following steps to solve the family’s debt crisis.

Get organized. First, get all of your finances into one place so you can see everything. Mint is a great tool to use for this!
Know how much you owe. Once you have all your finances in one place so you can see how each part is moving, write down how much you owe and what kind of debt it is.
Start writing down a budget at the beginning of every month. A written budget is a great way to keep on top of things and you’ll be able to see and plan every part of your finances.
Sell everything you can. In the video, Ramsey tells the caller to sell his $27,000 car. It doesn’t always need to be that drastic, but you can look for things around the house to sell or even downsize to one car if needed.
Identify ways to trim your budget. Once you have been budgeting a month or two, identify places to cut cost. For instance, you will need to cut eating out, going on vacation, and many other fun things to achieve your goal of being debt-free (but it will be worth it). Check out this Budget Planner.
Make extra money when you can. Whether it is picking up a second job, selling personal items, or odd jobs, find a way to bring in some extra cash. Then, put all your newfound money towards paying off your debt.

If you’re interested in learning more about Dave Ramsey’s steps to getting out of debt, check out The Total Money Makeover.

Readers, have you read or listened to Dave Ramsey in the past? What do you think about his response above?

Becoming Debt Free: Side Jobs to Help Pay Off Debt

December 27, 2017 | Leave a Comment

Paying off debt is no small task, especially if you have a substantial amount to be paid. Everyone should have the goal of being debt free one day but it sounds a lot easier than it is. In my case (and the case of many others), you need to generate more income to be able to pay off your debt. What side jobs are best for generating income to pay off your debt though?

Side Jobs to Pay Off Debt

Taking on a side job or part-time job is no small task. Many people who choose to take on a side job to pay off their debt don’t have kids or any family responsibilities. If they do have a family, the other half of the marriage is generally caring for the kids and home. That being said, taking on a side job is a great way to pay down and pay off your debt. You’ll want to be able to generate a decent amount of income if you’re putting in the effort though. Here’s five of the best side hustles to use to pay off your debt.

Freelance Writer

If you’ve got a knack for writing apply for a freelance position or post your resume on a freelance website. Most companies pay per article or per word so you’ll be able to rack in a bit of money. Depending on your experience and the place you’re writing for, pay can be anywhere from $25 up to the thousands.

Become a Social Media Assistant

Social media assistants can make pretty decent money and the work isn’t all that demanding (if you’re tech savvy). For the most part you just man the company/website’s social media pages, do promotional work and sometimes run a Facebook advertisement. Social media assistants get paid per post sometimes. If you get hired on as a social media assistant (part time) you’ll be looking at an average hourly wage of $15 per hour.

Part-Time Work

If writing and social media aren’t your thing you can always get a traditional part-time job. Most fast food places and retail stores need part-time help. These positions won’t likely pay much (minimum wage to $10 for most) but the extra cash can help you work your way to becoming debt free. Check around in your area to see if there are any available part-time positions.

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Nannying/Babysitting

Being a nanny or babysitting is another great way to earn extra cash. If you’re good with kids and able to get good referrals babysitting can pay anywhere from $10 to $25 per hour. The greatest part about becoming a babysitter, also, is that you can pick up/turn down babysitting opportunities as your schedule allows. Care.com is a great place to start looking for babysitting positions near you.

Salesperson

Becoming a salesperson may seem like a full-time gig but many people have become rather successful selling items part time. You may have seen the “ITWorks” girls on Facebook or even had friends that sell LuLaRoe. Either way, these sales opportunities can help you pay off your debt over time. Just remember to check for the signs of a scam before jumping into a business venture.

These are just a few side jobs that you can take on to help you pay down and pay off your debt. Do you have any other side jobs that could contribute to someone’s savings or “debt fund?”

Photo: Working Law Solicitors

When is Debt Consolidation a Realistic Option?

October 2, 2017 | 1 Comment

When it comes to paying off debt there are multiple approaches you can take. For some, debt consolidation seems to be the answer but is debt consolidation the best answer?

What is Debt Consolidation?

Debt consolidation is essentially taking out one loan to pay off all (or a good chunk) of your debt. It is generally used for people who have a large amount of consumer, or credit card, debt. This makes it so that you’ll have one easy payment each month going towards your debt-payoff efforts. For some, this has been the answer to their struggle with debt.

The Problem With Debt Consolidation

The biggest issue with debt consolidation isn’t taking out a loan to pay everything off. The issue lies with the individual’s personal finance approach. Normally, people who consolidate their debt have no plan to spend cash and not run their credit cards for everything. This makes it so that some people who have taken the debt consolidation route may wind up back in tremendous debt. There is also a good chance that they don’t have an emergency savings fund either, which means if an emergency arises it will likely go on their credit card.

And, even if you’ve established a solid plan for saving and reforming your spending habits, debt consolidation may wind up costing you more in the long run. For the most part, people choose debt consolidation to make their lives a little easier and, in some cases, decrease their monthly debt payment. However, debt consolidation loans can come with a higher interest rate and will last much longer than most of your current debt repayment plans. This means you could potentially wind up paying more when all is said and done.

Should You Consider Debt Consolidation?

If you’re thinking about debt consolidation, you’re not alone. There are plenty of people who have consolidated and paid off their debt successfully. And, while there are plenty of things to consider before doing so, it is a viable option for some. If you’re considering debt consolidation, remember the bottom line: Will it cost you more to consolidate? If the answer is yes, don’t.

Also, be sure that you have a solid financial plan for once your debt is consolidated so you don’t go back to the same spending habits. Oftentimes “moving” the debt, like you do when you consolidate, makes people forget about the debt they were in, to begin with.

Other Ways to Get Out of Debt Without Debt Consolidation

Debt consolidation is far from the only way to pay off a large amount of debt though. Here are just a few ways to get out of debt without consolidating:

Get a Look at Your Finances – Take a minute and really sit down with your finances. Get an idea of what is possible and what is out of reach in terms of paying off your debt and your budget. If you need to, reach out to a financial advisor.
Write Down Your Budget – Once you’ve got a sense of what your finances are like, start tracking your spending and create a budget. Make sure you write it down and hold yourself to sticking to it!
Get a Second Job – If you’re having trouble paying off your debt, consider getting a second job or side hustle. Bringing in more money will always positively affect your finances.
Live on Less Than You Make – This is a budgeting basic but something you need to keep in mind. If you truly want to be debt free you CANNOT spend more than you make.
Don’t Take on New Debt – If you’re just getting out of debt or trying to get out of debt, don’t take on any new credit cards or loans. Though credit card offers can be tempting, just say no.

Getting out of debt is no easy feat. While debt consolidation may seem like the answer to your problems, be sure you consider taking some simpler avenues (like living on less than you make and earning more) before taking on a consolidation loan. Remember, it’s not really getting rid of your debt, it is simply moving it!

Have you consolidated or paid off debt successfully? We’d love to hear your story!

Photo: CafeCredit.com

Characteristics of Debt-Free People to Adopt

July 24, 2017 | 1 Comment

As a millennial, I feel I’ve grown up around people who would rather say “I wish I could do that” than work for what they want. I’ve heard plenty of people say they aspire to be wealthy or aspire to be debt free. Why keep on dreaming when you can make small changes in your life today?

Generally it just takes a few consistent changes in your life to start working towards a goal, such as becoming debt free. This has been a goal of mine for quite some time and I’m always wondering if there is more I could be doing to ease my path to financial freedom.

Five Characteristics of Debt-Free People

When I started to think about it there was only one thing I needed to change in order to start working towards becoming debt free and living my life as a financially free adult. My attitude towards finance has been melancholy (something I truly couldn’t afford). So, I decided to identify some characteristics of people who are debt free.

They Are Goal-Driven

Most people who become debt free are goal-oriented. After all, paying off your debt and becoming financially free isn’t something you can do without having visible and manageable goals. If you want to become debt free you will have to establish goals for yourself and being goal-driven will help you obtain your debt free status.

Debt-Free People Are Kinda Frugal

A lot of people who don’t have any debt can come off as cheap or frugal. This is because they know that debt is not a tool. You don’t use money that you don’t have to pay for things you don’t need. You also wouldn’t pay full price for something when you can get it much cheaper elsewhere. Having this mentality keeps them debt free.

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People Who Are Debt Free Are Patient

Paying off debt takes a lot of time and patience, therefore, debt free people are usually very patient. Nothing with finance will happen overnight (unless you hit the lottery and even that takes time) This is one of the many characteristics that helped them become debt free in the first place so it is a great one to adopt for yourself.

Debt-Free People Are Not Materialistic

If your end goal is to be debt free you cannot place much value in materialistic things (unless you have the cash to pay for them). Many people go into tremendous amounts of debt because they want to have nice things. Instead of applying for store credit, buy the item(s) you can afford. Living lavishly won’t lead to financial freedom.

They Are Always Willing to Make Sacrifices

Lastly, people who have become debt free are always willing to make sacrifices. If they can’t afford to do something, they don’t do it. They will also likely turn down an outing if they have a small amount of debt to pay off so that they may be debt free again sooner.

Obviously not all of these are characteristics that can be adopted by everyone but if you attempt to be a little more frugal and pay close attention to your finances you may be able to become debt free some day too!

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