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"Only I can change my life. No one can do it for me." - Carol Burnett
This week we have an awesome post by Andy Masaki who writes about personal finance tips and everything about money management over at PennyLessDad.com
When you are in your debt payoff journey, you have to stay motivated till you repay the last cent. Easier said than done. But, it’s not that difficult too!
Check out these 6 tips which can help you not to give up when paying off debt.
1. Take an account of what you have accomplished
Do you always think how much you need to pay off? Hold on! First, take an account of how much you’ve already paid off.
So, make a list of your financial achievements so far. It can be how much debts you’ve paid off or how much you’ve accumulated in your emergency savings account.
Nonetheless, you have to be honest about how much you have accomplished. It will help you plan successful strategies and stay motivated.
2. You’ve done quite a bit, now you deserve a break
Think once! Will you be able to continue working for 7 days a week without taking a break during the weekend? No, right?
You need to follow the same strategy while paying back debt. You are doing a hard work while paying back dues, so you deserve a break too!
But, does that mean you’ll stop making any payment? No, just you have to stop thinking about debt for a period. Continue with what you’ve been doing so far and saving money every day. But, don’t think about any strategy or evaluate your success during this break.
Another important thing, physical rest is also necessary along with mental rest. You become more energetic when you get a good sleep at night. So, never compromise with your sleep.
3. Evaluate your old strategies and make a new plan if required
After you have taken a break, evaluate your strategies and plan new ones. The first and foremost thing to do so is to revisit your budget and strategies, and plan a new one.
Even if you’ve been successful in saving a significant amount and paying back the debt by following a budget, you need to revisit it periodically. You never know how you might have the capability to save more than what you could do a few months back.
So, discuss with your family members regarding how to plan a new budget, which you can follow with ease.
4. Evaluate your goals and make changes if required
Not only your budget, you need to revisit your goals as well.
For example, paying the entire outstanding amount is your long-term goal, but you need to set your short-term goals as well.
Once you achieve your short-term goals, make sure to celebrate your achievement. It will help you to stay motivated since you know you can enjoy a specific thing once you achieve that benchmark. It will automatically give you the required motivation.
It can be taking a well-deserved vacation, buying a thing you want, taking a break from your monotonous life, or even throwing a party to enjoy. However, at the same time, don’t splurge much.
5. Decide whether earning more or saving more is your strong point
You have to decide which works easier for you - ‘earning more’ or ‘saving more’.
Sometimes, you wonder whether to earn more or trying to decrease spending makes more sense. There are no rules to come to a conclusion. You have to understand your circumstances along with your financial situation and decide which works best for you.
There may be a time when earning more will be easier for you, and sometimes you’ll feel that decreasing spending will be more beneficial.
However, if you think earning more is better than looking for ways to save, then look for extra earning opportunities. It will help you in your journey to become debt free. And, if you’re good at following a budget and saving what you want, then go for it.
Nonetheless, extra income always helps if you enjoy the work and can balance your professional and personal life well. Do not hamper your personal relationships just to save money and pay off debt. If you are struggling with debt problems and want to stay away from it, follow these simple tips on how to become debt free easily.
6. Pat yourself in the back and be happy with where you’re at
Do you compare yourself with others? If so, then stop doing it if you want to stay motivated to pay till the last cent of your existing debt.
Before you compare yourself with others, you have to put yourself in their shoes. So, don’t be sad or become stressed if a friend of yours has paid off his/her debt completely, and you haven't been able to do it yet.
You might have built an emergency fund, which your friend hasn’t.
So, pat yourself in the back and be happy for what you’ve achieved so far.
Wrapping up
Does debt always play a negative role? Well, maybe not always.
When paying off debt, always keep in mind one thing that debt can play a constructive role in your life, too.
So, don’t feel bad about your current state. Always use this as your platform to be financially successful.
Let us know what you think, drop us a line below or email us at thedebtfreejourney@gmail.com and let's keep the conversation going.
Thanks and til next post.
Peace and Blessings to you All.
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