No Longer Drowning in Debt! Heading for the Beach!

Posted by M.S. on May 12, 2009

As we mentioned in the last post, I’m Drowning in Debt, What Do I do Now?, there are 2 components in the plan to eliminate debt.  They are: spend less of what you currently earn and make more money.

Today,we will look at the expense side of things.  Remember, this is about building an exciting future, not about dull budgeting and deprivation!

To keep you motivated, I highly recommend cutting pictures from magazines so you know what you are aiming for and to inspire you to stay on track when the going gets tough or you feel deprived.

Long ago, I cut out a picture of a beautiful home as a short term goal and a beautiful beach as a long term goal.  The beach photo reminded me that I want to be able to sit on the sand some day and NOT work hard every day.

I decided to sacrifice spending now for financial freedom and life at the beach later! Now that you know what the goal is–you can determine how to get there!

Simply–Eliminate every expense you possibly can!

• Drive an inexpensive car  Save with a Cheaper Car.
• Eat at home and bring your own food to work.  Muffin Calculator
• Quit buying junk you do not need!
• If you need clothes, buy them on sale or at the thrift store or at a garage sale.  I buy almost brand new clothing that way! Don’t knock it till you’ve tried it!
• Adjust the the thermostat to save energy costs.
• Cancel Cable TV.
• Do not smoke!
• Get your books and movies FREE from the library!

Cutting these expenses will give you cash to pay down your debt, so you can begin to save and invest.

If that sounds extreme or harsh–ask yourself these questions: Do I really want to be rich or don’t I?

Will spending on this item get me closer to being rich or keep me poor?

You get to decide!