I started getting into the debt-free community a couple months ago. I knew absolutely nothing and like most others I had the mentality that debt is just going to be a part of my life. Inherently I’m an impulse buyer. Anything that is on sale or would serve even the tiniest purpose in my life I would buy. I go into stores and purposely try to find things to buy because my brain gets excitement from that. Growing up I learned to find things on sale and to stock up on items that are cheap even if they might not serve a purpose. Now that I have been doing research about budgeting and paying off debts I’ve noticed myself changing my habits and thoughts. Mind you, this is no easy task. I still have the inclination to overbuy/overspend and I still have the mentality that I should be stocking up on things that I don’t need. I’m working on pushing those thoughts out of my head when I go shopping.
When I first started budgeting I would feel disappointed by the restrictions on our shopping; I would think that if only we could spend more then I would be happier. I’m noticing now that I get that same excitement from saving our money and being mindful about our purchases. Having a reign on our money makes me feel a few things: 1. Less stressed about paying off bills because I know I will have enough money, 2. I feel hopeful because I know we can budget and save for things like vacations, and 3. Less guilt about spending money because I’m aware of where all my money is going to. Something that used to give me the most anxiety was opening up my banking app to see my account balance. I’ve gotten to the point where I check it a few times per week and I get excited on payday to allocate money to my bills/debts.
My debt payoff system and savings system is not perfect and not near where I want it to be yet, but everyday I’m working on it and figuring out how I want it to be. This change doesn’t have to be overnight (like I initially wanted it to be). We live in a consumer society where money and buying things are everything. It takes a lot of time and concentrated effort to train your brain not to think in that way. In my journey, changing my thoughts and behaviors came first. Now I’ll work on my plan and systems. If you have anything that works I’d love to hear your thoughts!
I recently stumbled upon the debt-free journey community on Instagram and I’ve been inspired to start taking debt and money seriously. Throughout college I really wasn’t thinking ahead to the loans that I would have to pay off and had really poor budgeting skills. I’m just now starting to take this seriously. A few months ago Bea and I opened a joint savings account and I recently signed up to have money from my checks sent to my 401K. I always had the thought that I would be in debt for life and chose to think of it as part of my life. Seeing other posts about people living debt-free has really motivated me to start crunching the numbers and figuring out ways to pay off the $119,328.04 that I have in debt right now.
The first step for me in this process was actually sitting down and writing all of this out. I had some estimate of what it might look like though this was a little more than I expected. From what I’ve learned there are several ways of trying to pay of debt including the debt-snowball (start by paying off your smallest balance and working towards the largest), the debt-avalanche (starting with your largest balance and working towards the smallest), or attacking the debt with the highest interest first. I’m still figuring out what I want to do/would be most feasible for me.
I started reading this book by Gail Vaz-Oxlade and I’ve been getting some good advice for how to approach this. She recommends the first couple of steps to be defining general goals that you have, looking at what your core values are, narrowing down goals for the next couple of years, ranking them by importance and then figuring out if they align with your values. It seems complicated but it’s actually pretty simple. Below are my notes that I wrote during a lunch break one day.
This is a great way to keep in mind what you’re working towards and what you would like to do with your time and money. I’m continuing to figure out my May Budget which I’ll be posting here and what tips/tricks work best for me. Highly recommend Gail’s book Debt-Free Forever: Taking Control of Your Money and Your Life as a great place to start figuring this stuff out. Of course I also have to mention Dave Ramsey as he has a highly followed system of money management called the 7 baby steps. I’m still deciding if that is something that I would like to follow but more on that later.