The most important frugal living idea should be to: Get out of debt. In fact, it’s so important, we’ll say it again, louder.
GET OUT OF DEBT!
"You can't just sit there and wait
for people to give you that golden dream.
You've got to get out there and make it happen for yourself.”
- Diana Ross |
There is no point in cutting your expenses, eliminating unnecessary purchases, and living frugally if you’re not using the money you save to immediately pay off your debts.
Every time you make interest payments on a credit card, you’re throwing money away. Get out of debt and get out from under the burden of credit cards once and for all!
Putting this key frugal living idea into motion isn’t as difficult as you might imagine. You can gain momentum using what we call the “Big Mo”, or as some call it, the “debt snowball.” Here’s what you do.
First, list all of your outstanding debts from smallest to largest. You’re going to attack the smallest one first.
While making just the minimum payments on the others, aggressively pay off that smallest debt. Pinch pennies elsewhere to generate maximum progress; reduce other expenses wherever possible, and pay everything you possibly can on that debt, every month until it’s gone.
Feel GREAT in what you have just accomplished, it’s no small feat.
Then, take the money you used to pay on that debt every month, and use it to pay off the NEXT smallest debt. Follow the same plan, paying off that debt as quickly as possible, then moving on to the next one.
Do you see how it simply this process works?
Let’s say your minimum payment on your smallest debt is $30, and on your next smallest, it’s $50. Once you’ve paid off the first one, you now have an additional $30 a month to put toward the second debt, which means you can pay at least $80 instead of $50. See how it snowballs?
This frugal living idea will work best if it’s accompanied by cutting your expenses in other areas. Make a list of your monthly expenses and look for ways to reduce or eliminate them.
Take all the money you save and pay off those debts, each and every month until they’re gone.
Think about the peace of mind you’ll have when you have no more debts to worry about.
Think of the extra cash you’ll have each month, too, considering how much of it currently must go to the credit card companies! Imagine the sense of personal freedom that living debt free will provide you.
Use every frugal living idea you can think of to reduce expenses. Think of new ways to increase your income in order to more quickly get out of debt.
Enjoy the freedom and independence that comes with living debt free.
You’ll soon see why so many people are making an effort to live debt free for the rest of their lives, and with some time and diligence, your family can become one of these amazing success stories.
"Try not to become a man of success
but rather to become a man of value.”
- Albert Einstein |
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Debt is NOT your friend. It's not a wonderful "tool" for building wealth. That's a myth.
