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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.

3 thoughts on “How to get out of debt

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