This was the exact position I was in a few years ago and I couldn’t understand how people saved. I was constantly juggling which bill I was going to pay or not and which was most important at the moment. I was in a constant cycle of not having enough. I was behind on all my bills and the money I was bringing in did not meet the mark. I felt insane because I was doing the same thing over and over again. I decided that I had to do something different or I was going to lose my mind. So I started reading a lot of books and one of them told me I had to take back control of my finances. The crazy thing is I thought I was in control but the way they explained it is you have to eliminate all the things that did not fit into your budget. At the time I was making around $2,500 a month. The first thing I had to do was write down all my bills and open all the notices that I continued to pile in the corner because I could not face them. Once I had a clear idea of where my money was going and how much I owed I had to take baby steps in paying everyone back but I also needed to look for ways I could cut my spending so that I could pay down my debt. Here is a list of things that I did to be debt free and change my financial future.
- I cut out my cable.
- I called my car insurance company to lower my insurance as much as possible.
- I moved to a less expensive place while also moving closer to my parents so that they could help with daycare which would cut my expense twice.
- Instead of me juggling my creditors each month I called every one of them and let them know my situation and how much I would be able to pay. Most of them worked with me and I was able to pay them all off with a affordable payment plan.
- I paid off my car and vowed to keep my car as long as I could without purchasing anymore cars until I was debt free.
- I stopped caring my credit cards so that I could not spend another dime on them.
- I changed my cell phone company so that I could save $50 a month.
- I requested relocation of work so that I was closer so I no longer had to spend as much on gas.
With all the changes I was able to pay everything off in 2 years so I was debt free. It felt so good because not only did I pay everything off I was also able to save during this time. I had to make some drastic changes but it was well worth it. I believe that most do not ever get out of debt because they are not willing to let go of the things that got them there. I was willing to give up a lot to stop the vicious cycle. After 3 years, I not only paid off my debt I was able to purchase my first home. This accomplishment made this journey well worth it.