7 Secrets to Paying Off Your Debt Faster
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- čas přidán 25. 08. 2024
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My solution to getting out of debt was to stop wanting so much. In 2017, I was 57, unemployed, $30K in debt with no savings or retirement fund and stressed out. I radically changed my life, sold everything, worked all the time and lived like a monk for 6 years. Now age 63, I have no debt, a fully-funded emergency fund, regular income from my own business plus savings to invest, a comfortable place to live and peace of mind. Life on the other side of debt is so much better.
It's so crazy to me that people go on annual or bi-annual vacations. Like, I haven't been on one in years...being a homebody is good for the wallet😂
What’s wrong with annual vacation lol
Nothing wrong with it! Just always saw it as something only rich people did lol
I went on a mini vacation after Christmas as a huge surprise for my 9 yr old along with a couple family members, and we are going on a family vacation in May big time first for us, really looking forward to it though
A vacation can actually be good for your mental health. You get more experiences and you can also look different at your own life.
We have been debt free for years. We still do "scorched earth" budgeting during every winter to save money for big purchases. We pay cash for vehicles, recreational property and are currently planning to build a camp on a property we bought 2 years ago for cash. We ALWAYS pay cash. We are seniors living on a fixed income and still manage to live our best life by staying debt free and saving money for our wants. We literally live on 30% of our income and save the rest for our big purchases. Our friends and relatives think we're dirt poor because of our spending habits LOL.
I tell my son the best way to get out of debt is to never get into debt. I know, not possible for everyone. But good if you can.
1. Surround yourself with positive people.
2. Pause investing while you’re paying off debt.
3. Selling stuff.
4. Get a side hustle.
5. Skip vacations.
6. Do a no spend challenge.
7. Make a budget.
Secret 7 is the most important, and the only reason you should do Secret 2 is if you have a lot of high interest debt, like credit cards & payday loans, so you should knock them out first. Once you have that done, resume investing because time value of compounding interest is incredibly powerful.
I would add one extra tip, look at your monthly expensive. Try lowering them. For example, I lowered my internet bill by moving over to a other company, I lowered my gas bill by signing a multi year contract. I lowered my phone bill by not getting a new phone and combining it with a carrier for your normal home internet. I lowered my energy bill by trying to isolate the house better. You can do this with simple things. All this extra money you are left over with, you use that to pay of your debt! In my case I am going to 5 fold the payment I did before, just by lowing my expenses and using all of that savings to pay it off faster.
I am going to be happy dancing in 6 1/2 weeks! Is when we hope to pay off the house🎉🎉🎉🎉🎉
Rachel, wanted to thank you and Dave, and all the folks with Ramsey solutions. Am in my mid 50's now and am very comfortable thanks to you and your father's advice. Took out a mortgage to buy a lake house, but should have that paid off before I retire in a few years. Thanks again!
I'm debt-free!! What a peace of mind.
One of my best friends wants to plan so much but told em sorry, I'm stepping back and paying off debt first!
Ha! I can go many years without a vacation. I don't have any money or enough credit to do so. I'm broke, but in a year and a half maybe two I won't be any longer.
On baby step 2, my biggest issue is my sweet tooth and way too many trips to the convenience store (DG, gas station...)
Biggest tip. Go to dg on Saturday when they do the 5 off 25$. Have a stock up day of just goodies. Then stock away for when you really need it. But most of the time it's a psychological thing. when you allow yourself, you won't want as much
@@christinahanson2775 thank you I will give that a try
I put extra income like bonuses into early payoff. Just have to be careful to stick to my banks contract and not overpay.
No spend month is the best. I did it in January, now heading for much and am still on it. I have saved so much. In January 250, February 300 and in March I aim for 200. I eat what is in the office. Has turned to be healthy for am eating lots of beans and no meat😂
I need all 7!
Always open to hearing your wisdom. That's why I subscribe to your CZcams channel. Otherwise, I could just sit in a corner and enjoy my own wisdom all day, for my own entertainment.
Skipping vacation is not a really good advice in my opinion! It’s good to release the stress and it’s good for the mental health even if it’s a big expense. You work 5 days a week 52 weeks by year…. You need a break and at least a week or more!
Great information, but I didn't find video listed, and I need the budget help.
How would having a government pension change your investment calculations? How should teachers, like me, and other state employees on these plans invest their money for maximum wealth?
Ramsey says 15% savings no matter what. The money guys channel gives more nuanced advice about pensions.
I really felt like that blanket was going to be used as a prop. That the blanket was going to start talking, or something.
I am debt free. Other than medical bills, I owe nothing.! However, I now have no credit score. Which is no good cuz in a couple of months I am going to move. And to rent anywhere they check your credit score. Cuz that matters for some reason. Forget that I pay my rent on time, if not early. I pay all my bills. So owing no one anything means bad credit!! Seems backwards to me. One would think that not being in debt is a good thing. Seems to me it's not. I don't care though. I will not go into debt!!!
Oops, I was investing and paying off debt. I’m a bad boy!😂😂
3:15
Puts a band aid on that debt, but doesn't solve the underlining problem.
If I get extra bonus and shifts from my job and have no time for side hustle. Do I still have to get a side hustle if am already burned out from my double shifts at work?
My number one tip is that I have a cash offset account attached to my mortgage, in this account I keep my 6 months savings of expenses. It drops the interest I pay on my mortgage by about $100 a month and will cut 8 years off my mortgage
Do you recommend not giving while paying off debts? My only debt is my mortgage.