Shopping Challenge 2017

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This challenge is for anyone who is in debt, including car, student loans, or credit card. Try for this month to go without getting your hair done, nails done, eyebrows or eye lashes. Anything that is a luxury or personal care, try to cut it out. So here is my theory, why have your hair done and nails gelled up and you are just paying the min balance on your credit card. The thought came to me when I randomly made a small payment of $50.00 to my car loan. We are trying to have the car paid off in 2 years, earlier than the expected loan date. The next month was Easter so I decided to get my hair done which cost me $41.00. After about a week I had to wash it and I thought to myself well darn I would of rather did my hair myself for Easter and put that 41 dollars towards the car. This lit a spark in me and I was buckled in and ready for the challenge.

DIY IT

Now if you cannot do your hair and its important to you then don’t cut it out, but there has to be something in the personal care section of your budget you can cut. Are you getting your nails done once a month, then go without, or polish your nails yourself. What about waxing your eyebrows, spa appointments, I have mostly always been a DIY girl when it came to beauty. But now with Pinterest and Youtube. You can DIY almost anything.

 

 

IS IT WORTH IT

Of course we all want to get out of debt, we want to have a nice paid off car and money saved. However for someone reason we seem to find ourself back in debt and always wonder why or blame someone else. The job, kids, where you live etc. If you want to save more you will have to understand its 80% mental. You have to cut things that you have always believed you need and go without. You must really believe that having a future of wealth is better for you than having the nice nails or new car. If you don’t truly believe that then none of these challenges or post will be of any service.

 

WHO CARES

I am in the believe that every women should go through the “who cares” stage. And I don’t mean stop brushing your teeth and looking presentable. I mean the whole I care about my future and not looking good for people who don’t pay my bills. I have recently hit that stage with my son. I get so much crap on how I should raise him or feed him or dress him, that it has made me really look to myself and live my life for God and my family. The people you are going in debt for and looking nice for will not be there when your car gets reposed, or when you can’t pay your light bill.

 

HARD CORE

So while I have backed off the personal care for the month, I have for the whole year of 2017 to not spent a dime on clothes for me. After I gave birth to my son in January I decided to not return to my job and stay home with my son. This was probably the best decision in my life however my household went from 2 income to 1. My husband had recently just started a new job that earned more money but it still wasn’t enough to cover my income as well. So we had to find ways to cut money. By month 2 I notice my son was spitting up everywhere, so much I thought to myself for the whole year I will not spend money on clothes. Now at the time this was easy however now it is hard. I have lost all my pregnancy weight and I feel like every store is having a sell and calling my name. But with me not spending money on fashion we have more in the budget for bills and savings plus whats the point of wearing brand new clothes all the time when you still owe people money.

 

JOIN ME

It not only has been refreshing for my wallet but also for my spirit. I feel less connected to materials. I am able to focus on what really matter in this world serving God, being a great wife and mother to my baby. Can you handle the challenge?

 

How to get out of debt

 

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Many people believe that they need more income to get out of debt. I have heard this excuse many times. And I get the logic of it and why its so common but its ultimately wrong. Now getting more income is great and would help anyone pay debt down faster, but what it does not do is change your mindset or change the person that got themselves in debt in the first place. The average person would just take the increase and up their lifestyle. This will only keep you stagnate in the same problem. The issue with this thinking is you will never change your lifestyle and only depend on a job increase to start really digging into your finances.

SHORT AT THE END OF THE MONTH?

If you are trying to make ends meet and you still are short at the end of the month then you must look at your expenses before you start blaming your income. Now yes incomes have fallen and are not equal to inflation. But don’t use that as your excuse to stay where you are. If you didn’t know you were going to be short at the end of the month then that means you are the problem not your income. You should know how much money you have coming in so you can efficiently pay all the bill going out. Once you see, hey I don’t have enough income to pay my outgoing bills that’s when you start adjusting. This moment is not meant for you to complain I don’t make enough it’s the moment to start cutting expenses.

WHAT GOT YOU INTO DEBT

Most people fall into debt not because they didn’t make enough, mostly it comes from spending more than what you make. If you had this mindset on making 30,000 it will be the same when you make 300,000.  If you got into debt because you bought a new car when you could of kept pushing your used WORKING car, or you moved into a house you couldn’t afford, or you prefer to rock only name brand at the expense of charging your credit because you didn’t have the cash to pay for it. These characteristic will create a mindset that you deserve a type of lifestyle and its your income that’s the problem, not the person making the income. Look in the mirror 9x out of 10 the issue is YOU!

LOOK AT YOUR CAR 

I have talk to many of people and as I look over there budget I notice an outrageous car payment. Statically black people buy more Mercedes than any other race. We are known to spend our money on vehicles. If you car does not match your income you are in the wrong boat. If your interest rate is over 6% I would suggest refinancing it. Or I would trade the car in for a used cheaper car to lower the note. I know it sucks. It driving the latest and greatest. It you should be in digging yourself out of debt just to show off a nice car. I have 2005 Nissan Sentra with 188k miles on it and yes people make fun of me. But you know what they don’t laugh at my… my banking account.

HOUSING 

Where do you live out? Is your rent more than 30% of your income? If so you should rethink about moving. Also when looking at apartments you must see who is the internet provider are they cheap. Is the place new or old, newer place tend to have better efficient appliance which lowers your electric bill. How close is it to work? Will you have to spend more in gas. Your location isn’t just about rent, it can affect a range of things in your budget. By looking into all those other variables you can see what you can cut off and put towards your debt.

 

SELL SELL SELL

Go and set up an ebay account and pay pal account and sell sell sell. Most likely you have clothes and shoes and purses that are worth some money. Looks like you need to sell them. It may seem hard at first but remember once you are out of debt with a nice savings you can go out and buy all that you want.

 

CHIP AT IT

Look at your debt and see which one is the smallest. If its under 1000 put all that you sell towards that debt. Start small and gradually chip at your debt. once you start cutting things out of your budget you will see how much money you will have at the end of month to put towards debt. Once you start chipping of your loans you will get the hang of things and it will be easier.

 

YOU TRULY MAKE LESS THAN 25,000 A YEAR?

Now I want to address some people that actually do need a higher income. Why yes if you are living in poverty you do need to make more. But to become a victim of your income and not addressing your limitation, commit to constant growth rather than constant struggle and victim-hood. Life is tough and sometimes you may feel like its not fair but change it, I worked 2 jobs with money and no bills just because I never wanted to go without. Nothing is amazing if it is handed to you, go grab it. Try looking for another job, try creating a side hustle for extra income. There is so many ways you can add to your income without going to school or getting another job. You just have to put your mind to it, and be patient.

 

Making more won’t change anything 

I can attest to this after doing my taxes. Me and my husband made more than we even knew last year so much we had to pay into the IRS. However this year we decided that I should stay at home with our child and take the hit on the income. While it has been tough I have been able to cut $1000 from our spending. We are making 50% less and still find the money to through at debt. How? We dropped our lifestyle habits. No restaurants, no new clothes, no going out to the movies. With our income being sliced we had to match it with our lifestyle so our debt can still be attacked. The only differences is we just won’t be rocking the new new for a while.