Let’s face it. All the good, even great, advice for getting out of debt is worthless without the money for doing so. In this article we shall explore two ways for finding money to pay of debt.
There are basically two ways of finding money to pay off debt. One is using the money you already have or make. The other is making extra money. Which of the two is easier or better?
Well, none of the two ways can be said to be easy. Sorry, but anyone who promises that they will get you out of debt without any effort most likely does not have your best interests at heart. And each individual’s case is different. You can choose either way, and you can also do both.
But as most successful people and companies (including fortune 500 companies) will tell you, it is easier to save a buck than to make a buck. So first in the order of things is to see if you can cut down on some of your expenses. I know this may not be what you want to hear but read on.
The good thing is that you can cut down on expenses without necessarily cutting out some of the things that you love. Getting out of debt needs not be punishment.
You need to sit down with a pen and paper in hand. Make a list of all your expenses. If you know how to use a spreadsheet such as Microsoft Excel, use one. You don’t have to do this for the rest of your life, just the first couple of months. This is important in order to know where your money really goes.
Next, ask yourself what in that list is a “must have” in order to be happy. It is tempting to check everything, so you might need to list these things in order of importance from the greatest to the least.
What you are going to do is keep the things you “must have” but cut down mercilessly on everything else. If you enjoy your Starbucks coffee several times a day, you will keep that. But if you also live alone and don’t watch that much TV, you might have to downgrade your cable or satellite TV plan.
Alternatively, you can cut down on most things on your list, but leave a little bit of your “must haves”. For example, instead of having four cups of the Starbucks coffee you can scale it down to one or two. You still get something you like but also save some money.
Done right, the above method could help find money to off debt without punishing yourself for it.
However there are times when expenses have been cut to the bone but the money is still not enough. In this case you need to generate some extra cash.
We are going to steal a chapter from Angela Logan, a woman who almost lost her home but came up with a brilliant idea that did more than just save it. What did she do?
Angela took an old family recipe for a cake and turned it into a commercial venture. She aptly called it the “Mortgage Apple Cake”. This not only saved her home, it has virtually altered the cause of her life and in a positive way.
You can find extra money to pay off debt using what you already have and/or know. This includes your skills, talents and hobbies.
We shall look at a few ideas of making extra money to get out of debt in a future article. Keep looking at this blog.