The first step in debt free living is to get organized. Write down all of your needs. The most basic needs first like Shelter, Food, Transportation and Clothing. Write down what you are paying on one side of the paper and also the lowest possible amount of money you could spend on each and add them at the bottom of the page both currently what you are spending on them and what could be the lowest amount you could spend on them. Example you are currently paying a $600 for a car payment insurance, vehicle registration, repairs, and traffic tickets but is there a way you could possibly sell the car and take public transportation and ride a bike and taxis for less. If that’s not possible then look at your housing could you move or maybe rent a room to lower you monthly expenses. Another Idea would to buy you clothes at thrift stores. In Becoming Debt Free you are going to have to make tuff choices to secure you financial freedom and doing things you would not have considered in the past but take this as a challenge and a way you can grow as a person and secure your future financial Freedom like a secure retirement.
The Second step in debt free living make the change to lower you expenses you might have to move, so start simplify what you really need and all the excess you have not used in the past 12 months sell at a garage sale, flee market, online what you do not sale donate to a charity like the Goodwill you can use this money to help pay moving expenses. This also is part of organization which we cover in step one. It might be overwhelming to think about doing this but once it is done it is liberating and you are well on your way to the second step of debt free living. Everyone’s situation is unique to them so there is no one size fits all solution these are just ideas you can use to help you make the tuff choices, try to get family and friends to help support you emotionally during these times.
The third step in debt free living is once you have lowered your expenses work on your income to raise it if possible again each situation is different and there is no one size fits all but if all you need is a little encouragement then I hope this article is giving it to you try to get extra money doing something you love especially if you already have a high demanding job this way you will not get burned out and you will be able to sustain your new income for many years to come and it might actually grow over time. Start small do not overwhelm yourself all at once talk to friends and family and ask them what you could do with your talents to make extra income. Maybe you love to bake cakes you could start to sell birthday cakes to friends and family as an example do not despise the small income you might make at the beginning because you can make it grow over time thru word of mouth and putting yourself out there a little bit.
The fourth step in debt free living is now that you have extra income and lowered expenses do not spend the extra money but start to develop an emergency fund put the extra money you now have into a savings or checking account which everyone you can get without fees and let the money build up once you have saved up $1500 celebrate go out to dinner its been a long road, then start to pay extra payments on your debts and you will be well on your way to Finacial Freedom and have started to take important steps to Debt Free Living.