Now that we’ve got you in the right mindset and equipped with the 4 valuable questions to ask yourself before spending money, it’s time to look at the bigger picture. So we put together a general overview of how you’re going to get out of debt and start saving money. While getting out of debt is the hard part, the good news is that once you’re debt-free, it’s much easier to create an emergency fund and start building wealth.
Here are the 10 steps that are going to free you of debt and allow you to start saving your money:
- Make a commitment to get out of debt for good and ask your family members to help and support you.
- Put all credit cards in the freezer and do not use until further notice. Use cash only.
- Live within your means. When you run out of cash quit spending for the month.
- Save $3 a day every day and put in your debtbomb jar. You will have hundreds of ideas on this website to help you save at least $3 a day, if not more.
- Make a list of all your debts.
- Make minimum payments on all debts, if possible.
- Each month put the contents of the debtbomb jar towards the first debt. Continue to do this until the first debt’s paid off, then do the same for the next debt and so on.
- Yell “KABOOM!” when you pay the last debt off! Celebrate!
- Use the cumulative monthly payment you paid on the last debt and start putting that amount into a savings/investment account such as an IRA or 401k. Never stop putting in money each month.
- Keep putting that $3 a day in your debtbomb jar, and you can now build and use the contents as your emergency fund.
Go through these steps and start putting them into effect. Seriously, what are you waiting for? Go find a jar and get $3 in there by the end of today.
Each day counts and each day we’ll work together to get you closer to being debt-free and financially comfortable.
Martin Sher is CEO of AmSher Collection Agency and a recent past president of ACA International, the Association of Credit and Collection Professionals. Martin is the author of the 54 word Collector Pledge, committing credit and collection professionals around the world to the ethical and respectful treatment of all consumers. Martin’s personal mission is to get 5 million people out of debt-for good, and for FREE.