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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

Amy is a writer who blogs about relationships and lifestyle advice.

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Last Updated on January 21, 2020

How to Develop a Millionaire Mindset in 6 Simple Steps

How to Develop a Millionaire Mindset in 6 Simple Steps

We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?

It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.

How do you go about developing that millionaire mindset? By following these simple steps:

1. Focus On What You Want – And Take It!

So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.

Millionaires play to win, not to avoid defeat.

This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!

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2. Become Goal-Orientated

It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.

Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.

Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.

Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.

You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.

If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?

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If you are to become a millionaire, you need to start accumulating money.

Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life

3. Don’t Spend Your Money – Invest It

The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.

Stop working for your money and make your money work for you.

Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.

There’s not just the stock market — there’s also property, and your own education.

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4. Never Stop Learning

The best thing you can invest in is yourself.

Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.

Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?

Learn everything you can about how economics works, how the stocks markets work, how they trend.

Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.

Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You

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5. Think Big

While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.

There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.

Aim for the stars, if you fail you’ll still be over the moon.

6. Enjoy the Attention

To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.

Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.

If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.

Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.

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Featured photo credit: Austin Distel via unsplash.com

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