If you haven’t heard of Dave Ramsey by now, then you may be missing out on information that could completely change the way you handle your money! His 7 baby step method has completely changed the way we handle our finances and the way we were able to pay off our debt. In this 30 day challenge, we are going to help teach you how to pay off your debt, by the teachings of Dave Ramsey. The skills you will learn in this challenge will help give you the excess cash flow you need to start making big payments on your debt!
How much money do you have in an emergency fund? You need at least £1,000 in your emergency fund.
If your emergency fund is lacking, look into picking up a side hustle that can earn you enough money to fill your emergency fund.
Start with your smallest debt, and put any extra money you have toward this debt. As you pay off each debt, move to the next largest debt.
Instead of heading to the store to get your kid’s new outfits and bedroom furniture, head to the second-hand stores to look for great deals on gently used items.
If you are still hanging onto your sky or virgin bill, it’s time to cut the cord!
If you are still eating out, it’s time to put an end to it! Keep frozen pizzas handy for those nights when you’re in a pinch.
Learn how to brew your own coffee at home and avoid your local coffee shop.
Stop buying books and movies and head to your local library to pick up new books and even movies to watch.
Have you ever considered using voucher codes? Do a little research and start collecting those coupons to help you lower your shopping bill, and even get items for free!
Learn how to be more intentional with your shopping trips. If you struggle with impulse buys, consider buying your groceries online. Make a list and stick to it so you don’t overspend.
Is your hobby kind of expensive? At least while you’re paying off debt, look for a hobby that will be less expensive but still entertaining.
Reevaluate your memberships and subscriptions. It may be time to cut some of those out to pay off your debt quicker.
Go through the items in your home and look to see if you can sell anything you aren’t using anymore.
Are you still a two-car family? Try living without a second car for a while and see if you can sell that second car to help pay off your debt.
If you still have credit cards in the house, cut them up! Burn them if you have to.
Set up cash envelopes to help make staying on a budget easier.
If you are investing in anything right now, stop contributing. Put that extra money toward your debt and pick back up once you’ve paid off your debt.
Reevaluate your budget and see what’s working and what’s not. If you don’t have one, create one now!
Create some inspiration in your home! Put up a reminder of why you are trying to pay off your debt or a creative tracker to help keep you motivated.
Do some research and find out what free entertainment options are available in your city.
Connect with a few other families or individuals who are working toward the same goal as you are.
Look at each line item in your budget, is there a way to enjoy the same things for free or cheaper?
Talk to your kids about living on a budget. Let them know what’s going on and include them in the discussion.
Consider getting a part-time job to help make extra payments on your debt.
Do you need something that you may only need to use one time? Ask around and see if you can barter for it before buying.
Track your expenses using apps like Cleo to help make sure your spending is on track with your debt free goals.
Host a car boot sale and see what you can get for the household items you no longer need.
Now that you’ve gotten rid of some of the items in your home, consider downsizing. If it makes sense to do so, look into getting a smaller home that you can afford if your house is making you broke.
Unsubscribe from junk mail and other sales emails that may tempt you to spend.
At last, you have reached the end of the challenge! Use all these savings to make a big extra payment toward your debt!
I hope this challenge has helped you on the path to becoming debt free, and that your financial future will be much brighter.