Are you looking to pay down your debt? Do you know where to start?
Are you paying off a little bit here and a little bit there and feeling like you are getting no where?
I felt like that and it was so defeating. There were more bills than money and I truly felt lost. Lost in a sense that I had failed. I had failed to tell my money where to go and I didn’t understand how to make it work for me.
After a lot of stress and searching for answers I found the most amazing book The Total Money Makeover by Dave Ramsey. This book was life changing it taught me to be more aware of my spending and how to direct my money toward my goals. I learned a plan to rock down my debt step by step and to lift that heavy rock of doubt off my shoulders. This plan has worked for me and I want to share it with you. Please note this post contains affiliate links.
Are you ready to Rock Down Your Debt? Yes.
When you wrote up your budget in Budget Like A Rock Star you compiled a list of your bills or expenses and your income and you subtracted one for the other. During this activity you may have realized you have more bills than income. Well don’t stress about this we are going to tackle these bills one by one until they are gone. How? With a plan.
If you have your list of bills great if you don’t lets make a new one. I want you to compile all your bills or monthly expenses such as your mortgage, rent, utilities, morning coffee, car payments and etc.
Once you have these all compiled write them down in a list form. Keep the small bills the ones you can pay off monthly at the top like your cellphone bill and your rent. Further down the list I want you to write down your debt from smallest amount to biggest amount. These will be credit card balances, car loans, overall mortgage amounts. These will be the big ones.
You are going to rock a plan to pay down these big guys. Have you got your list? Great.
Now, every month when you work on your budget pay your monthly rent, your grocery bills and pay your minimum payments on your big bills. This will keep everyone happy and rolling along nicely.
Now, if you have budgeted and cut back on some expenses or you are working a side hustle job or selling old items on ebay you will have some extra money left over. Make this money work for you and put it towards your smallest debt bill.
Step by step if you continue to put your extra money toward your debt you will see a difference. You will see results. You didn’t get into debt over night and you won’t get out over night. It will be a process and a plan you need to Rock to make it work. If you are looking to pay down your debt faster consider taking on extra work or cutting back on extras. You rule your money, make it work for you. Make a plan and rock down your debt. If I can do it anyone can.