The skeleton that seems to be taking up the most space in our closets is financial. While student loans are the majority of it, there are also auto, mortgage, and credit card debts. It is time to clean out your closet! Climb out your financial hole with these solutions.
- Write it all down: Write down all your assets, debts, income, and expenses on a sheet of paper to see the overall picture.
- Find opportunities to save extra: What can you cut back on? Is too much money going into your luxuries or wanted instead of need? Cut back a little: reduce your phone/cable plan, (if you are not already) use coupons, and limit your entertainment amenities. Eliminating can actually boost your saving each month, allowing you to have an extra funds. Add that additional money to pay off your debt.
- Take Steps to bring in extra: Sell large household items online that you are no longer using. (This can also clear up clutter!) After getting permission from your management, you can consider completing some professional development courses that can result in a raise. Just be sure that any extra money that comes your way, whether it is a pay boost, tax return, or sold items online, is used to pay off your debt first!
- Have a plan: Know where all your money is going from here on out!
It is not going to happen overnight, but it will be well rewarded in the end, once you can declare yourself debt free! Just remember, “you cannot spend more than you make!”