I know, it’s all overwhelming trying to figure out where to start. You want to be debt free, but there is just too much information to absorb, you are on overload!
I am here to help!
I have a list of 5 things you can do TODAY to kick start your debt snowball.
Before we get started, be sure you can check off these boxes:
You have completed your emergency fund of a minimum of $1,000.00
You have already listed out your debts, in order of smallest to largest.
You have created a monthly budget so you know where your money is going as soon as it comes in.
If you haven’t completed these steps, these are crucial! Setting your emergency fund for any unforeseen needs that pop up will give you a sense of peace while you throw every extra cent to your debt snowball. And seeing these debt and budget numbers up close gives a sense of reality and urgency to get them gone as soon as possible.
I have a free printable download that will help get you started- click here!
Now you have your emergency fund, list of debts, and your budget, so let’s get to work.
The goal is to knock each of your debts out as quickly as possible. When you look at your budget, you need to be able to find ways to both cut down expenses and increase your income. Those are your only two options when it comes to maximizing your debt snowball payments.
If you are looking to increase your income, visit these pages for side hustle ideas and inspiration:
For our 5 steps, however, I am only going to focus on ways to cut down your expenses. In the words of Dave Ramsey, “You have to be willing to live like no one else, so that later you can live and give like no-one else”.
Remember, these drastic steps are only temporary. They are only until you get out of debt, once you knock out your debt, your freedom opens up. If you go at this with 110%, then you are not subscribing to this lifestyle for the rest of your life. If you go at this half heartedly and pick and choose when you want to commit, you will live in a cycle of no results and discouragement.
You have to commit. You might not like the harsh reality of it, you might not like having to hold yourself accountable. That’s fine. But, the flip side of this is, will you like still having to make car payments in 10 years? Not being able to go on a family vacation without financing it? Not being able to invest in your children’s futures? The choice is up to you.
If you are ready to commit and change the course of your family’s future, then here are 5 steps to kickstart your debt snowball and get out of debt for good!
As you are reading through this page, think about things you can cut from your budget that will free up money to put towards your debt snowball payments. Look at your budget, where does your money go? Compare your budget with these 5 steps and put some of these steps in motion to get your debt snowball paid off, and your financial freedom back:
1. Streaming Services and Subscriptions. This can get out of hand really quick. On average, each household in the US has 4-5 streaming services. Get that number down to 2 maximum, bonus points for getting it down to 1. And, if you pay for cable on top of your streaming services? It’s time to do some soul searching. This can free up a lot of money to put towards your debt snowball.
Subscriptions are fun at the beginning, then before you know it you have boxes coming to your house monthly filled with items you aren’t ever going to use. Everything from dog toys, beauty products, razors, meal kits, like where does the madness end? STOP IT! Cancel your subscription boxes, and do it now. You can always start them back up… when you are debt free.
You and the delivery guy shouldn't be on a first name basis.
2. Restaurants. This might be where I lose you. Stop eating out. The average household spends about $3,500.00 on eating out each year. That is an insane amount of money that can be going straight to your debt snowball. You don’t think about it when it’s $30 here and there, but it adds up.
You can’t just cut it out of the budget and call it a day. Something like this is a huge change if you are constantly eating out. This has to be a behavioral change, it has to become a new habit in order for you to be successful.
Why do most families eat out? Convenience. You have had a long day, kids are on another level, or you had to go to soccer practice, an event at church or school, there are so many reasons to just throw up your hands and say, we’re eating out. You have to make an intentional effort to plan ahead, or else, you will be easily tempted to run to through the Chick-fil-a line and grab supper. You have to plan ahead, there’s no way around it. Whether that is actually meal planning, setting aside a time to create freezer meals for busy nights, or just being creative with what you already have at home. It doesn’t matter what your system is, it matters that you pick a system and stick with it. That is the only way to survive the temptation of eating out.
3. Groceries. I know what you’re thinking! If you cut out restaurants, then obviously your grocery bill will go up. While that is true, you can also balance it out with these tips:
Shop store brand items
Stick to a couple of snacks at a time rather than buying everything you like, eating a little bit of everything here and there and then throwing away the rest when it goes bad. Stick to one or two snacks each grocery trip, and once those are gone, you can purchase more.
Create meals with similar ingredients. Stop picking meals that each have 4 different ingredients that will never be used again until you make that same dish a couple of weeks from now. By sticking with similar ingredients, you are not only saving money, you are also saving room in your fridge and pantry.
Eat sandwiches. Honestly, nothing makes my son happier than when I tell him he’s having a peanut butter and jelly sandwich for supper. I don’t mind them either, they are so good!
Set a goal of cutting your grocery bill by 10% this month. Then push for an even larger cut the following month. You will surprise yourself.
4. Shopping and Extras. Honestly, how much stuff do you buy at Target that you actually need? Yes, it’s nice to get new stuff, it’s nice to have a house that has matching decor, but it’s also nice to be debt free. So you pick your hard. Take a serious look at your spending, and figure out where to cut it.
Yes, you have to allow yourself to spend some money, or else you would go crazy during this process. BUT, you have to have control of your money. Yes, my house would be super cute if I spent the money on decor and new furniture, and I will do that one day. But right now, my priority is paying off my debt, so interior design has to take a back seat. You need to apply this philosophy to your wardrobe as well. Cut back your spending money and put it towards your debt.
5. Get Creative. Is there something in your budget that you can cut out completely? Starbucks trips, gym memberships, expensive date nights. I am not saying don’t get coffee or spend time with your significant other. I am saying get creative with how you go about these activities. Make coffee at home. Walk around your neighborhood with a friend. Pull up a workout routine on Youtube and do it in your backyard. Come up with ideas for cheap date nights.
You can do it, it just won’t be easy, you have to get creative and be committed to this lifestyle until your debt is paid off. And once you start seeing results, you will be encouraged to keep pushing forward.
Remember, this is only temporary. The faster you get your debt snowball paid off, the quicker you can go out to eat on a Tuesday night because you just don’t have the energy to cook. These are the things to look forward to!
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