I spend countless hours each day finding deals and coupons but never really talked about the meaning of Couponing Away Debt and where it came from. For the next few weeks I will go over tips and experiences I have learned along the way trying to get out of debt. You can catch up on last weeks post HERE.
Alot of our credits were not consolidated so we still are left with a decent amount we have to pay for. Including a student loan, 2 cars plus now our new mortgage. Thats why we needed a budget. You never know where all your money goes until you write it all down. Once we saw in plain black and white shock set it. We were spending way to much on alot of areas.
Another area was the WAY I shopped. I never wanted to miss a deal before I knew it I was spending way more than I had to. I do not NEED another 10 boxes of pasta or whatever it was really. The sale will come around again. I found myself spending alot of my weekly budget on stocking up items because they were cheap rather than weekly necessities such as fresh produce.
Shop With Cash
I know this one is a tough one for some…uh ok me! If you plan ahead and shop with cash you know what you have to spend. There is no room for impulse buys that could blow a grocery budget. I know it may sound stupid but think about that extra $5 impulse buy you spend a week add it up that’s a $260 impulse for the year!
As shopping with cash there is a very easy way to stick to a budget by using the envelope system. Each week lets say your grocery/drug stores budget is $100. Take that hundred put it into an envelope you can ONLY spend that per week for those items. Once you have sat down and figured out your budget you know exactly what money will go where. $20 in another envelope for entertainment, $50 for gas, $30 for clothes etc you get the picture. The goal is to only spend whats in those envelopes for that week. You could roll over what you have left into the next week and add it to your budgeted amount or save it. The weeks I really am on board with the envelope system I take any and all leftover money and use it towards debt money. If I owed $100 minimum on a credit card that month and I managed $20 extra from my misc envelopes I pay $120.
If you have not heard of him Dave Ramsey is an amazing author. His theory of how to get out of debt is rather simple. First start with an emergency fund. He recommends $1000 this is different for everyone. Once that has been reached gather all of your bills. List them one by one starting with the lowest balance. Once you have that list attack it. Start paying the first one with the smallest amount (KEEP paying minimums on all the rest) once that is paid off move onto the next but use the previous minimum payment ALONG with the next minimum payment. You are used to paying both minimum payments so it will not hurt your wallet.
As you move down the list you will feel so much better about yourself. You will see the end of the road to DEBT! We are in the process of doing this exact plan. The movement is slow but we are making progress and it feels like a huge sense of accomplishment.
To Be Continued Next Week….
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