It's a whole lot of hard work but it's going to be worth it. Our trouble started a couple of years ago, when we had an 18% pay decrease due to the downturn in the economy.
Since last November (2010) I discovered who Dave Ramsey (financial expert) is and when January of 2011 started, I have been working hard on his plan. We have not been as perfect on the plan as I would like to be and I intend on making the necessary adjustments in order to do better. So far we have paid off 3 debts totaling $4000.
I didn't know that we had it in us to accomplish this but we have truly been living as frugally as possible to get this done. My husband and I have only gone out to eat 2 times this year and we spent around $25.00 each time (drink only water and skip dessert).
Other ways that we have stretched our budget is by making almost everything we need. This really isn't anything that new to me since I have always tried to be a good steward with the money that the Lord has given us but I have just increased doing what I already knew. (I suppose that by having deadlines on paying the debts off helped too and I was trying to avoid added interest by paying things off before promotional deadlines took effect. Another thing to do in order to get debt free is, don't create any new debt while trying to get out of debt. It's funny how common sense just hits you one day and you have a DUH! moment. There are so many little things that we have done to make it through this year, and you know what? The little things really add up. Dave Ramsey really knows what he's talking about and if any one is interested in knowing more about him just look him up online.
Heres a list of ways we have cut back
-Don't eat out (maybe cut back to almost never)
-Make your own bread, pizza, ice cream, donuts and whatever
-Although you can cut back by making so many things homemade, Try and limit desserts to no more than twice a week so that you don't go through more food than needed. (most of us can handle a little weight loss anyway).
-Limit trips to the store ( I spend less when I only shop every two weeks rather than weekly.
-If you do go to the store each week, try to leave the debit card and checkbook at home and only use a limited amount of cash to take with you so you don't overspend.
-Never pay full price for anything. I shop clearance racks regularly and only with a list. something is not a good deal when you were not planning on buying it in the first place.
- Try to limit your driving trips in order to cut back on gas.
-Cancel cable
-Find free entertainment or create your own. We get together with friends to play games and chat. This is how we have free date nights and sometimes we get together as families for outdoor movies, BBQ's and games. Also look within the community for activities like festivals/parades, (our library has a yearly magic show for the kids as well as a few other activities).
-I know that this last suggestion may sound nuts to some but I can tell you as a witness that I know that paying an honest tithing has helped us to get out of debt. The scriptures say to pay 10% of your income to the Lord and thats what we do. There are certain blessings promised to us when we follow this commandment and I can tell you that many times when we have written our bills out on paper and look at our income, it never makes sense on how we manage to keep the bills paid each month. Things keep happening to stretch the money out and at other times, others have given us just what we needed even though I never said anything as to what was lacking.
Very good Stacy..some good sound advice....just giving 10% of your income to a charity, church or whatever to witness to others and help..it does not ever make sense on paper, but it works:)
ReplyDeleteGoing out less and creating your own entertainment are also good..definetely something I need to work on:)