7 Money Secrets that Made me Get Out of Debt in One Year
I have been in debt for a few years now and I’ve tried many things to get out. From saving money to paying the minimum payment on my credit card each month. It was this year when I found 7 money secrets that made me get out of debt in one year which really change my life around. Secrets that not only got me out of debt but also helped me make more money than ever before!
It was really a bad feeling. I couldn’t live the life I want. But now everything is changed. I have more money in my bank account, I can have all that I want, and focus on my habits. My kids are able to have what they want and go where ever they want.
Since I did it, you can do it too. So let’s do it.
7 money secrets that made me get out of debt in one year
Here I will share with you all the secrets that helped me get out of debt in one year.
1- Track your money
The first thing I did was to start tracking where my money was going. Every month, I would sit down and write out all of my expenses whether I paid with cash or credit. Then, I put that amount into a spreadsheet. The categories I kept track of were: Gasoline, Groceries, Rent/Mortgage, Utilities, Cable/Internet, Phone, Credit Card Payments, and Miscellaneous.
This was a great way to see where I needed to cut back on my spending. For example, I noticed that I was spending too much on groceries and eating out. So I started planning my meals in advance and making a shopping list so I wouldn’t overspend on food.
2- Budget your earnings
After I saw where my money was going, the next step was to budget my earnings. First of all, I created a savings account so that I could put money aside for emergencies and future goals. Then I created a budget plan where every cent of my earnings went into one of the 7 categories listed above.
This ensured that I was always putting money away for savings and that I wasn’t overspending on any one category.
3- Spend less than you earn
After I saw where my money was going and what I needed to do to get control of it, then came the hard part: spending less than I earned. This was probably the most difficult thing for me to do, but it was definitely worth it in the end. After tracking my earnings and expenses for a few months, I started to see how much I was overspending on certain categories.
For example, I was spending more than expected on groceries, so I developed a weekly meal plan to help me stick to my grocery budget. By being thrifty in my spending, I was able to put more money towards my debt and get closer to being debt-free.
4- Pay off credit cards and loans
After I got control of my spending, my next step was to pay off all my credit cards and loans. This meant not using any extra money on anything other than my debt, like eating out or shopping.
I paid off all of my credit card debt within the first six months because I was able to take advantage of a 0% balance transfer deal that my bank offered. I sent all my payments towards that credit card and then paid them
off completely when the balance transfer was over. I then started to pay off my student loans using this debt snowball method, which helped me stay motivated because I was able to see my progress.
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5- Create a savings set to save for emergencies or future goals
After I paid off all my debt, I was able to start putting money aside in a savings account for emergencies or future goals. You can put your savings into different categories, like Car Fund, House Fund, Vacation Fund, and so on. This way, you’re always prepared for the unexpected and making progress towards your goals.
6- Make sure you’re getting the most out of your retirement plan
By this time, I had paid off all my debt, so I was able to start contributing more money towards my retirement. I had been given advice from a friend about index funds, so I started investing in stocks, bonds, and mutual funds through my retirement plan. This helped me get the most out of my retirement fund and continue to grow my money towards future goals.
7- Never stop saving and investing
No matter what you do, always save and invest your money! It doesn’t matter if you’re trying to get out of debt, planning for your retirement, or wanting to buy a home – the only way that will happen is if you start saving and investing your money now. And the earlier you start, the better!
When I had little money in my hand, I invested that money in my first blog and bought courses to save time. And guess what happened? Each month I have more than $2000 in my wallet.
So, try several ways to invest your money, but be careful to no lose them.
These are just a few of the money secrets that helped me get out of debt in one year. If you want to learn more, or need help creating a budget and getting control of your money, I suggest seeking out a financial planner or counselor. They can help you create a plan that’s specific to your needs and will help you get your money under control.
So there you have it, 7 money secrets that helped me get out of debt in one year. My hope is that you will be able to use one or more of these to help you better manage your money, pay off debt, save for retirement, and put yourself in a better financial position.
If you have other tips you are welcome to share them with us.
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