If you’re just starting a journey to debt free, or if you’re slowly moving along and are needing an extra push, this post is for you. Sometimes as you work toward your financial goals we need to jump start your debt payoff. The benefits of giving your goal a jump start are many. It will help you:
- make a serious dent in your debt
- force you to make a big sacrifice in order to get used to doing so
- motivate you to keep moving toward the finish line
Jump Start Your Debt Payoff
Long-term goals are difficult to keep up with. It’s easier to lose 5 pounds than it is to lose 50, and it’s easier to pay off $1,000 in debt than it is to pay off $10,000, simply because of the time factor. The more time that goes by as you work on your goal, the easier it is to live with the progress you’ve got left to achieve. As I wrote in this earlier post, the enemy of “best” is “good”.
If you’re in a situation where you need some serious motivation to move forward with your debt payoff journey, a good way to get that motivation is to jump start your goal by putting a huge extra amount of money toward your debt. Here are 6 ways you can find the money to do that.
Or “somethings”. I’m not talking about selling your old 10-speed. I’m talking about selling your jetski. Or your hot tub.Sell something BIG that will allow you to put several hundred or several thousand dollars toward your debt. This type of jump start will not only make a huge dent in your debt, it will help teach you that you really can live without your “stuff” and be okay. When Deacon of Well Kept Wallet and his wife Kim were working their goal of dumping $52k worth of debt in 18 months, they both sold their cars. Deacon’s car was upside-down and so they had to take a grand in cash (which they got from selling other stuff, I might add) in order to be able to pay off the loan in full. Kim’s car was paid for and worth about $5k, so they sold that too and bought two used cars that totaled about $4k, saving the other grand for potential repairs on the two vehicles. In a very short period of time they dumped a LOT of debt and got rid of a $400+ car payment. This move was a huge catalyst in allowing them to achieve their goal.
If you have the option, spend a month working some serious overtime at your job and put every extra dime toward debt. If that’s not an option, get a temporary second job or figure out some side hustles you can do, targeting all of your extra income toward debt. It’ll be tough putting in the extra hours of work, but when you do, and you’ve got a few extra thousand to jump start your debt payoff, you’ll be glad you did.
This will only work however, if you pinky swear to put all of your extra earned income toward debt and not spend it on stupid stuff because “you deserve it” after all of your hard work.
Do a Challenge Everything Budget
And be serious about it. J$ coined this term, and basically went on a mission to challenge every single monthly expense he and his wife had, and look for a way to get it lower. Then, he banked the savings he had created, and over the course of a year, he and his wife saved well over five thousand dollars. How would an extra 5k help your debt payoff goals?
A Challenge Everything budget means you dump the cable, lower your insurance and stop using electricity (I kid!). But it does mean that you get serious about cutting expenses wherever you can until the debt is gone.
This may not seem like a way to jump start your debt payoff, but believe me when I tell you it works. When you increase your knowledge about how and why you got into debt in the first place, you’ll instantly motivate yourself to go about correcting your mistakes big time. When you learn about the lies broke people believe, and the mistakes broke people make, and when you spend your evenings reading debt success stories instead of watching stupid stuff on the idiot box, you’ll find yourself wanting to achieve the success that you do deserve, and you’ll find yourself coming up with new and creative ways to put extra money toward debt.
By following the four steps above, you can put a serious big-time dent into your debt, and from there have the motivation to keep on going until you cross the finish line that is debt free. On your mark, get set, GO!