“Just as the rich rule the poor, so the borrower is servant to the lender.”
Most people view finances as either a blessing or a source of anxiety. I’m sure at some point in our lives we’ve experienced both sides of the coin. As a single mom, finances have really come to the forefront in my life. As the primary person who is responsible for taking care of all the bills and my child’s needs its important that I strive to become debt free, have savings, and an emergency fund. I’ve become determined to get debt free so I’ve been exploring different tools to aid me along the way. Here is how I’m tackling my debt:
- Extra Income: I needed to bring in more income. So I’ve taken a part time virtual job so I’m still home and it has made a huge difference.
- Breaking Down The Bills: I had to get in the nitty gritty of reviewing my balances, the minimum payments, how much I’ll pay if I only play the minimum (which is ridiculous!), and how many month it will take to pay off the balance.
- Paying the Debt Off Strategically: I’ve been aiming to pay off any smaller balances in full then taking those minimum payments and applying it to the next debt.
- Creating a Budget: I am using a David Ramsey budgeting tool called, Every Dollar. I love it! It is a super simple tool that keeps you organized and updated on your progress.
- Using Cash: Taking a specific amount of cash out helps me keep my spending under control. Once the money is out then that’s it!
- Tithing: This is an absolute must for me. I’ve set aside a certain amount of money for tithing and this makes me feel so good and determined to get debt free so I can give more to church and to other charities of my heart.
- Saving for an Emergency Fund: The goal is at least $1000.00 according to David Ramsey’s baby steps and I think that is a good beginning number for those unexpected emergencies.
- Investment: I’m doing some research, but plan to open a Roth IRA in the next week.
I’m super excited about what getting debt free will mean to my family. As of today, I paid off 4 credit cards with a total of $1323.00 and I just started this month. I plan to pay off 3 more balances at the end of July beginning of August with a total of $2778.00 or 2 more balances at $1344.00. I’ll give you guys updates as I hit milestones and I’ll give a snapshot of what getting rid of debt looks like for me.