Many of us were never really taught the value of money growing up. Credit just became a priority after 9/11 and even now a lot of us are still learning what it is. A lot of us were not told to take caution when utilizing a line of credit on a credit card. Student Loans are supposed to be an ‘investment’ however the upward bound interest with the principal gut checks is at the end of the six month grace period after graduation.
Life happens in between this. Whether relationships, new friendships, trips, health, medical insurance, birthday celebrations, births, and deaths.
The underlying tone in all this is money being spent and sometimes nothing to show for it.
So what do you do when you’re in your 30’s now wanting to clean and clear your diet, skin, and debt?
Some run and say they have no intentions to look at it.
Some look at it and now are ridden with anxiety attacks, depression, and check out emotionally.
And then there are the ones who want a better quality of life.
Recently I got to clean out two major debts.
My student loan and a major credit card.
Reasons I chose to do this: I hate being broke in my 30’s from just paying bills I technically caused on myself.
The student loan had to go and just letting it sit there was not an option. Yes, education is an investment but with interest? It seems more like a business of keeping me stuck to the routine of the 9-5 or consistent side hustles lifestyle.
Now many may be reading this post saying to themselves enough of the small talk now how?
High yield Savings accounts
And financial apps.
Now before you starting running a researching, first acknowledge all the debt you have by writing it down. It is more realistic because now you see where your money is going and what exactly your focus is when spending.
Is it food? Is it outings? Is it traveling? Is it trying to keep up with the Joneses?
Can you scale back?
What are you good at?
Are you using your talents? Maybe this can be a stream of income.
Ask yourself these questions and be realistic with yourself.
Now to the “how” to aspect….
I created a savings plan along side of the monthly payments I was contributing towards both of these debts. (Qapital.com)
I set a realistic goal. Highlight the word REALISTIC.
A goal to be attained in terms of your financial situation.
I also created a High Yield savings account one which I could earn a little additional revenue again I could put to the side for emergency endeavors. (Nerdwallet.com)
As soon as I reached the goal for each account I deposited these amounts along with the final payment that would be the difference. Reaching a 0.00 balance for each.
Now some may say damn I know that hurts or that could’ve be put towards something else.
Yes it hurts, hurts a hell of a lot! But you know what hurts compounding interest that goes unaddressed. Looking at a bill that you’ve could’ve killed a long time ago when you had it within your means to do so. The money that could’ve been invested towards something else, again I agree. But when you see your credit score stagnant can you really say you’re importance of ‘something else’ is being addressed?
So let’s review:
Lay out the debt.
Stop spending on top of your debt (I.e: stop swiping if you don’t have it)
Find out the interest and principal of your debt.
Lay out your spending habits.
Create REALISTIC goals.
See where you can scale back. What is your financial vice?
Tap into your talents. Make room for your gifts.
Continue to make your monthly payments until you meet your realistic goal(s).
Once you meet that realistic goal. Pay it and watch your credit score jump.
Apply this principle to other forms of debt.
I apologize for my absence work has been a killer.