How can you pay off debt when money is tight? You’ve been living paycheck to paycheck and you’re worried that it will be the same for the rest of your life. You have a steady income, but you can’t seem to save any money because every time you get paid, it seems like there is less leftover than before. In this blog post, we will discuss two strategies for paying off debt as quickly as possible.
It is best to match your consumption with the necessities of life, so when you are freed from meeting basic needs, you can pay off debt.
- Ask for overtime at your current job.
- Find a second job, this could be a part-time nearby, a seasonal job, or an additional job online.
- Start an online business. For more side business ideas check out 9 Side Hustle Ideas to Help You Make Extra Money
2. Decrease your expenses
- Review how you spend your money last month. Inspect your bank statement for the past 30 days, take a highlighter, and highlight the items that weren’t necessities.
- Think about how often you buy coffee, eat out, and did I really need that one thing from Amazon? Refraining from impulse purchases makes a huge difference in your debt pay-down.
- We spend more with plastic. Stop using credit cards and only use cash. Having cash offers you the opportunity to visually gauge how much you have or have leftover.
- Brainstorm what you’d like to do for extra money to boost your income.
- Make a plan! Having a budget is essential. If you don’t know where to start, consider the Cash Flow Method Course.
- Think about how you can stop the impulse purchases, have a pre-determined list before you go to the store, and sticking to it.
- Make a weekly trip to the bank to pull out your cash, so you don’t spend more than what’s in your budget for the categories to tend to overspend on.
I hope this article has given you some helpful tips for increasing your income and decreasing expenses. The most important thing is that you stay committed and focused on achieving financial independence. Which one will you focus on first?