When it comes to paying off debt, it’s often the first step that’s the hardest. Rather than avoiding the situation and letting your debt pile up, it’s time to take action and make being debt-free a priority. Take the first step by reading through these five helpful tips and implementing some or all of them into your life.
1. Check Your Spending
Starting off strong, it’s time to do what we all dread and that’s looking back at what you have been spending money on. First you must analyze your spending habits, then it’s time to create a budget based on your income. Once your budget is complete, make it a priority to stick to it. There are various apps you can use to track your spending, otherwise the old-fashioned pen-and-paper method works great, too.
2. Pick Up a Side Hustle
If you have some extra free time on the weekends or at night, finding a side job is a brilliant idea. Put all the extra money right towards paying off your debt along with what you’ve already been paying. Remember that you won’t need to work these extra hours for the rest of your life. Temporary sacrifice can lead to a lifetime of being debt-free!
3. Sell Things You No Longer Need
Don’t wait until it’s time for spring cleaning to go through your old things. Now’s a great time to rummage through closets, boxes and storage space to get rid of things you no longer use. You can have a garage sale, list your items online, sell to friends or however you prefer going about it. The money you make from selling your clothes should go directly towards paying off debt.
4. Utilize the Snowball Method
Everyone has their preferences when it comes to how you want to pay off your debt, but the snowball method is well-known and beneficial for many. Start paying off your smaller debts one by one, then work your way towards your bigger debts. Starting small is a great way to see progress and stay motivated.
5. Eliminate Subscriptions & Unnecessary Purchases
You may think that canceling a $20 monthly subscription will barely make a dent in your debt, but odds are there are countless unnecessary purchases you make without even realizing it. Stick to one TV/movie subscription, find a more affordable gym, make your coffee at home, avoid the extra fees of having your food delivered to you, shop cheaper by visiting the thrift store... the list goes on. These small sacrifices will add up quickly!
Stay motivated and disciplined with your finances, and you’ll be on your way to becoming debt-free. Remember that help is available when you need it, so speak to a financial adviser if you need advice. Feel free to visit our website to open a savings account or checking account and to learn more about the services we provide.
