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10 Ways To Become Debt-Free Quickly

10 Ways To Become Debt-Free Quickly

Do you want to become debt-free? In the current economy, American consumers owe $11.74 trillion in debt. While debt is common, it is very stressful and can put your whole life on hold. However, there are ways to help yourself get out of debt that are easy to keep to.

Check out 10 easy ways to become debt-free.

1. Pay Off High-Interest Debt First

Getting out of debt is hard – and even harder if your debts have high interest. Try to pay off your high interest debts first, as this makes your debt slightly cheaper in the long run; if you are paying $50 interest a month on one credit card, and $30 on another, paying off the first will make it easier to save and pay off your other debt.

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2. Look At Your Income And Expenses

Take a good look at your income and outgoings. Write down how much you make a month, and all of your outgoing expenses; rent, bills, travel, food, entertainments and little treats. You may be surprised to see how much you actually spend on things you could live without.

Doing this will show you how much money you have after your expenses to pay off debt, and it is a great way to show you what you are already spending too much on.

3. Create A Budget And Payback Strategy – And Stick To It

Once you’ve looked over your income and expenses, you can focus on creating a budget that pays off a set amount of your debt every month. For instance, if you earn $2,000 a month and you spend $1,500 on life expenses, you can pay off $500 of debt every month.

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A good way to stick to this is to pretend you earn $1,500 a month – that way it doesn’t feel like you are losing anything.

4. Get Rid Of One Luxury

Everyone enjoys a treat, whether you enjoy a daily coffee or subscriptions to your favorite magazines.

Work out one treat that you could live without, and cut it out. As you still have most of your treats, this should be easy to stick to. For instance, if you stop buying a daily coffee at work for $3, you save $15 dollars a week – and $60 a month.

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5. Consider Maximizing Your Salary

If you earn more, it will be easier for you to pay off your debt in quicker time. You could take on a second job, but if you don’t there are many other ways to earn a little extra; the amount of home owners in the United Kingdom taking on lodgers has doubled in recent years. Other options include selling on eBay, babysitting or freelancing.

6. Make More Than You Spend

Many people struggle to save, and can end up spending more than they own. Recent studies reveal that in 2010, 73% of Americans spent less than they earned, but by 2012 that number had fallen to 66%. Many people struggle with this problem, so make sure you know every month that you made more money than you spent.

7. Improve Your Credit Score

Improving your credit score is a great way to ease your debt, and work on paying off other debts. As your credits score improves, the interest rates you pay become lower. For instance, your interest monthly payments could sink by $20, saving you $240 a year. You can improve your credit score by paying your bills on time and not opening other credit accounts.

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8. Anything You Don’t Spend, Save

If you have money left over at the month, don’t treat yourself to a new handbag – treat yourself by reducing your debt a little further. Thinking this way will make you debt-free faster, getting you back to a financial situation you are happy with.

9. Be Disciplined

Try to avoid borrowing any more money or taking on any more debts until you have repaid what you already owe. This can often cause people to become disheartened, which could result in them losing their motivation and not keeping up to their re-payments.

Stick to your budget, and think about if you actually need to get in more debt – what is the money for? Is it essential?

10. Stop Thinking About It

Don’t spend every day obsessing over your repayment plans and budget – this can stress you out and make you feel like you are not in control of your debt. However once you have a payment plan in place, you can stop thinking about it and start just paying it. You are chipping away at your debt every day, so relax and try not to think about it. Good luck!

Featured photo credit: Imcreator.com via imcreator.com

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Amy Johnson

Freelance writer, editor and social media manager.

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Published on November 8, 2018

How to Answer the Tough Question: What are Your Salary Requirements?

How to Answer the Tough Question: What are Your Salary Requirements?

After a few months of hard work and dozens of phone calls later, you finally land a job opportunity.

But then, you’re asked about your salary requirements and your mind goes blank. So, you offer a lower salary believing this will increase your odds at getting hired.

Unfortunately, this is the wrong approach.

Your salary requirements can make or break your odds at getting hired. But only if you’re not prepared.

Ask for a salary too high with no room for negotiation and your potential employer will not be able to afford you. Aim too low and employers will perceive as you offering low value. The trick is to aim as high as possible while keeping both parties feel happy.

Of course, you can’t command a high price without bringing value.

The good news is that learning how to be a high-value employee is possible. You have to work on the right tasks to grow in the right areas. Here are a few tactics to negotiate your salary requirements with confidence.

1. Hack time to accomplish more than most

Do you want to get paid well for your hard work? Of course you do. I hate to break it to you, but so do most people.

With so much competition, this won’t be an easy task to achieve. That’s why you need to become a pro at time management.

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Do you know how much free time you have? Not the free time during your lunch break or after you’ve finished working at your day job. Rather, the free time when you’re looking at your phone or watching your favorite TV show.

Data from 2017 shows that Americans spend roughly 3 hours watching TV. This is time poorly spent if you’re not happy with your current lifestyle. Instead, focus on working on your goals whenever you have free time.

For example, if your commute to/from work is 1 hour, listen to an educational Podcast. If your lunch break is 30 minutes, read for 10 to 15 minutes. And if you have a busy life with only 30–60 minutes to spare after work, use this time to work on your personal goals.

Create a morning routine that will set you up for success every day. Start waking up 1 to 2 hours earlier to have more time to work on your most important tasks. Use tools like ATracker to break down which activities you’re spending the most time in.

It won’t be easy to analyze your entire day, so set boundaries. For example, if you have 4 hours of free time each day, spend at least 2 of these hours working on important tasks.

2. Set your own boundaries

Having a successful career isn’t always about the money. According to Gallup, about 70% of employees aren’t satisfied with their current jobs.[1]

Earning more money isn’t a bad thing, but choosing a higher salary over the traits that are the most important to you is. For example, if you enjoy spending time with your family, reject job offers requiring a lot of travel.

Here are some important traits to consider:

  • Work and life balance – The last thing you’d want is a job that forces you to work 60+ hours each week. Unless this is the type of environment you’d want. Understand how your potential employer emphasizes work/life balance.
  • Self-development opportunities – Having the option to grow within your company is important. Once you learn how to do your tasks well, you’ll start becoming less engaged. Choose a company that encourages employee growth.
  • Company culture – The stereotypical cubicle job where one feels miserable doesn’t have to be your fate. Not all companies are equal in culture. Take, for example, Google, who invests heavily in keeping their employees happy.[2]

These are some of the most important traits to look for in a company, but there are others. Make it your mission to rank which traits are important to you. This way you’ll stop applying to the wrong companies and stay focused on what matters to you more.

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3. Continuously invest in yourself

Investing in yourself is the best investment you can make. Cliche I know, but true nonetheless.

You’ll grow as a person and gain confidence with the value you’ll be able to bring to others. Investing in yourself doesn’t have to be expensive. For example, you can read books to expand your knowledge in different fields.

Don’t get stuck into the habit of reading without a purpose. Instead, choose books that will help you expand in a field you’re looking to grow. At the same time, don’t limit yourself to reading books in one subject–create a healthy balance.

Podcasts are also a great medium to learn new subjects from experts in different fields. The best part is they’re free and you can consume them on your commute to/from work.

Paid education makes sense if you have little to no debt. If you decide to go back to school, be sure to apply for scholarships and grants to have the least amount of debt. Regardless of which route you take to make it a habit to grow every day.

It won’t be easy, but this will work to your advantage. Most people won’t spend most of their free time investing in themselves. This will allow you to grow faster than most, and stand out from your competition.

4. Document the value you bring

Resumes are a common way companies filter employees through the hiring process. Here’s the big secret: It’s not the only way you can showcase your skills.

To request for a higher salary than most, you have to do what most are unwilling to do. Since you’re already investing in yourself, make it a habit to showcase your skills online.

A great way to do this is to create your own website. Pick your first and last name as your domain name. If this domain is already taken, get creative and choose one that makes sense.

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Here are some ideas:

  • joesmith.com
  • joeasmith.com
  • joesmithprojects.com

Nowadays, building a website is easy. Once you have your website setup, begin producing content. For example, if you a developer you can post the applications you’re building.

During your interviews, you’ll have an online reference to showcase your accomplishments. You can use your accomplishments to justify your salary requirements. Since most people don’t do this, you’ll have a higher chance of employers accepting your offer

5. Hide your salary requirements

Avoid giving you salary requirements early in the interview process.

But if you get asked early, deflect this question in a non-defensive manner. Explain to the employer that you’d like to understand your role better first. They’ll most likely agree with you; but if they don’t, give them a range.

The truth is great employers are more concerned about your skills and the value you bring to the company. They understand that a great employee is an investment, able to earn them more than their salary.

Remember that a job interview isn’t only for the employer, it’s also for you. If the employer is more interested in your salary requirements, this may not be a good sign. Use this question to gauge if the company you’re interviewing is worth working for.

6. Do just enough research

Research average salary compensation in your industry, then wing it.

Use tools like Glassdoor to research the average salary compensation for your industry. Then leverage LinkedIn’s company data that’s provided with its Pro membership. You can view a company’s employee growth and the total number of job openings.

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Use this information to make informed decisions when deciding on your salary requirements. But don’t limit yourself to the average salary range. Companies will usually pay you more for the value you have.

Big companies will often pay more than smaller ones.[3] Whatever your desired salary amount is, always ask for a higher amount. Employers will often reject your initial offer. In fact, offer a salary range that’ll give you and your employer enough room to negotiate.

7. Get compensated by your value

Asking for the salary you deserve is an art. On one end, you have to constantly invest in yourself to offer massive value. But this isn’t enough. You also have to become a great negotiator.

Imagine requesting a high salary and because you bring a lot of value, employers are willing to pay you this. Wouldn’t this be amazing?

Most settle for average because they’re not confident with what they have to offer. Most don’t invest in themselves because they’re not dedicated enough. But not you.

You know you deserve to get paid well, and you’re willing to put in the work. Yet, you won’t sacrifice your most important values over a higher salary.

The bottom line

You’ve got what it takes to succeed in your career. Invest in yourself, learn how to negotiate, and do research. The next time you’re asked about your salary requirements, you won’t fumble.

You’ll showcase your skills with confidence and get the salary you deserve. What’s holding you back now?

Featured photo credit: LinkedIn Sales Navigator via unsplash.com

Reference

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