Budgeting is focused on two things in a person’s life: saving and freedom from debt. Americans in the present are living paycheck to paycheck and are unable to pay their student debt or mortgage. Savings are only worth anything if you are already getting out of debt.
With student loans and mortgages, there is an incredibly high chance that the saving culture you need will focus solely on crushing your endless debts. We cannot promise you overnight success, but here are some practical pointers that you have to accept if you want to get rid of your student debt anytime soon.
1. Have A Basic Budget
Avoid putting any extra expenses in your budget as that has no point. You will always feel like you are only spending the necessary amount and will still be drowning in debt.
Make an essential zero-based budget and find freelance work to pay off all the extra every month’s fees. Your budget should only include food, utility bills, shelter, and transportation costs and leave out everything else.
2. No Binge…. Or Anything, Period
Retail therapy is a phrase that is not good for you, and so is binge eating. If you avoid any form of overindulgence in high caloric food, there is rarely any chance you will need organic food either. Cycle to work every day to help burn the calories and save good money on gas.
The point is, these small steps go a long way to reduce your debt in the long run. Rather than spa sessions with besties, buy machines and do personal care at home.
3. Avoid Excessive Investing At All Costs
The most common mistake individuals make is try to pay off debt with investment. Because they are trying to gather a large sum of money to be getting out of debt, they tend to make a move for a large payout and, hence make risky investments.
The result is that young people are most vulnerable to pansy schemes and shady deals. Make sure that you avoid investment until you have paid down your debt. So go at your own pace, but make sure that you continue to walk.
4. Don’t Buy Things On Credit
Don’t buy the new plasma TV on credit or a new car, make sure that you avoid taking on more debt until your student loans are paid out.
If you do need to buy an expensive thing, then save up the money and pay upfront. But taking on more debt while you have not paid off the significant debts is the reason most individuals are not able to pay off their debts.
5. Consider Side Gigs As The Right Gigs
Freelance and remote work is a great way to get an extra income. And it is also an excellent way to beef up your portfolio. Make a culture of taking up side jobs either through your contacts or online to make sure that you are getting some extra money.
That additional money will allow you to live a more comfortable life while saving up to get out of debt as well. Start at a small level, preferably in your profession. But if not working out, then you can do evening shifts, mow lawns, or drive cabs to make sure that you are getting some extra grease for your financial wheels.
6. Know About Debt Snowball
If you have multiple debts, then the debt snowball method is the best way to make sure that you pay down your debt in time. The snowball method focuses on starting with paying off your smallest debt and then working your way up the ladder one debt at a time.
The fact that you ultimately pay off debts tends to encourage the tendency to get out of debt and also increase your chances of succeeding when you are focused on one debt payment at the time.
How My EasyFi Helps You Get Out of Debt
My EasyFi expense tracker software is a great way to make sure that you make the savings that you intended. There are many ways in which in the app works for your benefit. And yet, it is unique because it will allow for various passive incomes to help you in getting out of debt without having to work for it at all.
Here are a few ways in which My EasyFi works to provide you debt relief. The central concept of the features described here is that you should understand the money you earn and spend.
As financial literacy is a complex issue for most people these days, the app will allow you to see where you can improve your spending habits or improve your earning by a notch.
(i) Affiliate Marketing
Now we become exclusive to My EasyFi and discuss why the app is an excellent companion for debt reduction. We have all heard of affiliate marketing, the process of selling third-party products, and gaining commission.
The app simplifies the process and gives you a chance to explore affiliate marketing. This is a simple and passive source of income that will provide you with great benefits.
The positive point of the app is that it saves you from the trouble of finding reliable affiliate marketing brands. The company provides you simple affiliate marketing options, like free and paid options where both types get 50% commission under certain conditions.
(ii) Debt Eliminator
As we are all here to understand how to get rid of the debt, the debt eliminator feature is of extreme significance. Also, the feature continuously shares the total payment, total interest, debt repayment calculator, and other functions.
They ensure that the debt you have is broken down into simple and understandable pieces for you without the need for extensive calculations.
The aim is to clarify that debt is not confusing or hard to understand, and that you have found the right set of data to make informed decisions. The app will automatically update the debt countdown as the debt is paid off with passing time.
(iii) Tips And Tricks
My EasyFi also comes with the tips and tricks section in the resources that will allow you to see all the various tips that will help you make money in the modern world.
However, the reality is that we provide the basic knowledge needed to make high-level decisions. The solution to this problem lies in how you employ these tips for yourself.
There you will find valuable insights into the financial industry and smart investment choices that will allow you to make conscious choices on the financial steps you decide to make.
(iv) My Future Planner
It is the prominent feature of the app that allows the user to see how much they have saved for the future and how they can save differently. Thus, the function takes debt into account and syncs it with other facets of keeping, such as the retirement plan and regular saving.
The result is that you can choose where to place your saved money and how to align your expenses with your savings.
(v) Money Tracker
This is one of the lesser-known features of the app that is also comparably common. The money tracker feature allows the user to track the money that is coming in and going out. You can track your expenses as well as your income or investment.
You will be able to see how to use your money for the best possible outcome. The main aim is to allow you to understand how you can curb your finances and get better financial security with fiscal spending and mindful use of the money you have.
All in all, debt payment is a simple and highly advanced problem that a massive population in the US and all over the world is facing. A few individuals pay the debts, and most individuals are drowning in it for the rest of their life.
The solution is simple; you have to prioritize your debts and make sure that the mortgages are being taken as the priority in your budget and are not given the last seat.
For any financial tips that you may require, get in touch with us, and we would love to help you out. For more information, check out our blog!
Great content! Super high-quality! Keep it up! 🙂