I work my job and I even try to make other money and volunteer for people. Yet I still do not make money to pay down debt. Help me figure this out.
The problem of being a lower wage worker, like even myself, is not easy. We make less then $20,000 a year, yet rent/mortgage and utilities still cost the same, whether we make 10,000 or 100,000. However, there are some things we all can do to cut expenses. I know that for those of us that make less, it may seem that we don't have any discretionary expenses to cut. However, I have found there is almost always things to cut. For example do we know where we spend all our money? For example, if we buy a soda pop/water and/or a candy bar is it figured into our budget? It may not seem like much, just a couple of bucks, but that couple bucks a day can add up to $60 amonth. That can be a huge part of a lower income workers budget.
What about meals out, I hate to say it, but for those of us in debt and especially those of us who are among lower income workers, we should not be eating out.
Of course, we should have the cable shut off and discontinue those newspaper and magazine subscriptions.
I know looking at my budget, I could almost live on minimum wage if I didn't have all these debts. Especially, if I didn't have the $400 a month car payment. This debt, if I followed Dave Ramsey's advice 100% could be eliminated more quickly by selling the car, buying a clunker and getting a small loan for the difference. In the mean time I would save money to buy a better car with cash.
I know it's not easy, to cut expenses and get debt free no mater how much we make. Whether you are a lower income worker, like this reader and myself seems to be or if you are a higher income worker, like I dream of being. However, it can be done.
It may seem like we are going no where, however, if we get really serious and track our spending, like I do on this blog then you will see your debt get smaller. Of course don't forget to cut up the credit cards, you can not spend your way to debt freedom.
As Dave Ramsey says, "live like no one else, so later you can live like no one else." In other words, make those sacrifices now, so later you can live without worry about (or at least as much) money.
That's what my wife and I are quickly finding out. We go without a lot of things that other people get but we will be at the point where we can do things that most people can't.
ReplyDeleteYou can buy and do so much more if you don't pay interest.
Something my wife did, when our kids were very young, my career was just beginning and money was scarce, was to round up our purchases.
ReplyDeleteFor example: if we wrote a check or made a debit card purchase for $24.25, she deducted $25. The .75 cents stayed in the account.
It helped us to slowly build a cushion and we eventually used that extra money on a cool little vacation.
Just a thought....
I am the Flagstaff Insurance guy.
You guys inspire me tremendously!
ReplyDeleteI never realized how much money I actually spent each month until I lost my job and was forced to re-evaluate my financial situation. I learned that I did not NEED cable and that eating out (even if it was just fast food) was costing me a fortune. I finally truly understood that I could really get out of debt if I was just a little more disciplined. Plus, cutting out some of the extras in my life was freeing in a way - less bills to pay.
ReplyDeleteI also learned that I chose what I ate with more care and stayed away from much of the junk I was eating, which led to me dropping some pounds and feeling better all around.
So if you really want to live better and become debt free, it can be done, even on the most meager of salaries.