Home » BLOG » Money Talk » TOP 10 TIPS TO BECOME DEBT FREE AS SOON AS POSSIBLE

TOP 10 TIPS TO BECOME DEBT FREE AS SOON AS POSSIBLE

This article may include partner links. If you click, visit or buy from these links, we will receive a fee or products from the companies mentioned in this post. Please read our disclosure policy for more details.

 

This week we have an awesome post by James who is a finance blogger and writes about personal finance tips and everything about money management over at BasicFinanceCare.com

 

 

Do you have debts hanging over your head and making you awake all night?

 

Debt-free” is one of the things that are added in the New Year resolutions for most of us. As it is a task that would barge into your dreams of becoming financially free. Debts get added easily but getting rid of them would require certain gimmicks. Debts can crop up in any form such as car payment, mortgage loan, credit cards, student loans, etc.

 

Stress is something that comes with debt and can become a nightmare for many.

 

Some financial mistakes of the past would have created a mountain of debts over your head and you might want to just clear it off. Certainly, it requires some time and efforts along with persistence to become debt-free.

 

MINIMALISM: An art of living with minimal resources

 

Remember that the easiest way is to inculcate this thought in your mind: “Less is more”. Moving step-by-step in the right direction can make it easier to achieve the goal of financial freedom. To begin with, you can adopt some of the values of minimalism and see how it works for you. The first thing to do is to identify what is holding you back such as your expenses or any unused material (can be anything) and then find a way to let go or reduce it. Once you start by scanning through your bank accounts, you can identify the weak areas and where you can save more.

 

We share these 10 steps below to follow to become financially free. You are free to add more steps to your list and work towards your goal accordingly.

 

First things first. Start by making a list of your debts and expenses separately. Analyze your spending habits and debt status. Then, list the steps to take towards attaining financial freedom or simply follow the steps mentioned below.

 

RELATED:

 

  • Prioritize your debts

Prioritize your debts and start paying off the ones with higher interest rates first. This will help you to get rid of the debts that are costing you more.

 

  • Add $10 more

Every small step you take counts to a large sum at the end. Try increasing your automatic loan repayments by $10. You will notice a huge difference in a period of time.

 

  • Cut down on unwanted things

Every penny counts especially when you have a pile of debts hanging over your head. Eating out daily, buying bottled water, etc. can be the areas where you can cut down and add this money towards paying off the debt.

 

  • Coin in the jar

Whenever you get any change put it in a jar and count it once the jar is full. You’ll have a good amount to put in your bank account and pay down toward your debts.

 

  • Face your bank statements

Most of us just ignore our bank statements and collect it without even opening it. You must start analyzing your bank statements and see where you’re hard earned money goes. You can always learn from your mistakes by knowing where you’re over-spending. One good tool to use is Personal Capital to do just that.

 

 

 

 

 

  • Be transparent about your financial status with your partner

Being transparent in a relationship is necessary, especially with your finances. You can save and reduce your expenses together. You can even look for support and advice from your partner regarding your financial situation.

 

  • Save a bit more

Look for opportunities to earn more such as any part-time weekend jobs, tutoring etc. Once you start getting extra money, you can save a bit extra too. Save for an emergency fund so that you’re prepared for a sudden need of money and not getting into new debt for a sudden need.

 

  • Make a list before you buy

Impulse buying is something you can avoid by making a list of things you need before heading out to the market. Keep a check on the stuff you have at home to avoid buying the same items again. You need to take note of your “wants” and “needs” before you buy anything. This will help you avoid buying any unnecessary “stuff”.

 

  • Cut down on unnecessary subscriptions

There are lots of alternatives to gym such as yoga, going for a walk, jogging, swimming etc. You can cut down on the hefty gym subscriptions and switch to the alternate activities.

 

  • Make use of gift cards, coupons & sale

Make the best out of year-end sales, gift cards and coupons to buy those things listed in your “needs” column than “wants”.

 

 

Summing it up:

 

Attaining financial freedom will not happen in a day, you need to be focused and take baby steps towards it. By taking the above-mentioned steps you can be debt-free soon.

 

Do you have more tips that can help us be debt free sooner? Please do share by leaving a comment or emailing us at thedebtfreejourney@gmail.com.

 

Until the next post.

 

Peace and Blessings to you All.

 

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.