Defeating Debt

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I started out my simplifying journey in part to pay off my debt. Although, I still have a way to go to reach my financial goals, I am now moving in the right direction.

Day-to-Day challenge.

I have always been good at long-term financial planning. I started putting money in my retirement accounts in my early twenties and I have increased the amount over time. I have purchased homes that I lived in and was later able to rent for profit. What I have had a hard time mastering is my day-to-day spending.

No matter how careful I think I am being, I always find myself unable to conquer my nagging debt.

So after reading hundreds and hundreds of finance books and articles here is what I decided to finally implement. (And by sharing it here, I have a support group that can keep me honest!)

Reduce Monthly Expenses

Sounds easy, but this can be challenging unless we change our mindset of what we “need” to be content.

By downsizing, I cut my monthly house bills to include mortgage, water and electricity.
I reduced my insurance bill and more importantly I reduced my day-to-day spending. Shopping is less appealing when you have limited space to put things!

But the biggest change is my mindset. I am more content with less these days, which has translated to less money out these days.

My tiny transition and change in mindset gave me enough wiggle room in my monthly bills that I now have enough to make real progress on my debt.

Stop digging!

I like to think of myself as mature and responsible. And if you met me, you would probably feel comfortable using those words to describe me.

But when it comes to credit cards I am a disaster! And I have always resisted the recommendation to cut them all up. See my credit cards are my security blanket and in the past they have been a way to “buy happiness.” In reality they have kept me trapped.

So no more digging! Time to end my credit card habit.

Keep moving in the right direction

By tracking my progress more consistently I am getting better at adjusting my spending habits.

I still struggle to make the right choices all of the time, but I making progress in the right direction. I have decided that rather than beat myself up for less than stellar financial decisions in the past, I will focus on how to move forward.

Hopefully these tips can help you in your financial journey.

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One thought on “Defeating Debt

  1. Good luck on your journey to being debt free! I’m in the same boat as you, working towards that goal. Sometimes it is good to hear the struggles, like with making the right choices day-to-day, rather than all the success stories

    Like

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