Setting up a Debt Free Life

If you’re reading this, you know what I mean when I talk about fear around money. It’s something that we’re so conditioned to worry about (especially as women), and we shouldn’t have to! Instead, we should look for little ways to make life and money work for us. Are you in?

BECAUSE LIFE HAPPENS

I am a firm believer in the first baby step of the Dave Ramsey plan which is this: Save $1,000 as fast as you can.

Think of your emergency fund as a safety net. Saving first allows you to get in the mind-set of being in control of your money. It forces you to make a change. Saving money can actually become addicting once you see you can do it!

SMART MONEY MOVES RIGHT NOW

No matter what your situation looks like, there are some smart moves we can make with your money right now. Top of the list is keeping lines of communication with the financial institutions you use.

It’s also important that you don’t just ignore your payments. Creating a credit score issue for yourself down the road isn’t a smart move.

The biggest conversation to have with yourself right now is to find out where you are financially. Sit down and take inventory of where you are. Ask yourself, How much debt do I have? How much credit card debt? How much student loan debt? What money do I have coming in? Where is my savings? What are my investments looking like?

Check Yourself Sis

You need to take inventory of your current financial situation so you can understand where you might need to take action to fix or protect your financial well-being. Knowing where things stand will allow you to chart the course for navigating relationships with financial institutions moving forward.

PAY DOWN HIGH-INTEREST DEBT

Credit card debt is, like, kinda the worst debt ever. It’s REALLY easy to rack up, and it’s REALLY hard to pay down. And the interest rates are NO bueno. The thing is, by not paying down your debt, you’re spending more than you realize. That interest compounds over and over again, and typically does so until you’re standing in it up to your knees.

This might seem counter-intuitive to the rest of my advice, but put a pin on your actual money saving while you’re paying down debt as fast as you can. Make sure you have enough set aside for an emergency, but then focus deep on paying off high-interest things like that American Express card. Most of the financial course and education will start the debt pay down at the smallest first. I suggest otherwise- take inventory of each interest rate you are paying- one card may be 19% another may be 27% and the ones with those monthly/annual fees should go first. Once you’re debt-free, you can save without knowing that you’re bleeding from the other side. Win, win.

Tools: purchase my debt snowball spreadsheet in my product store