When you’re in debt, it’s hard to know your next step. Many look at their bills and wonder which debt they should focus on first – that high-interest credit card or the smaller store balance that keeps nagging at them.

I know that feeling. Standing at my kitchen table, sorting through statements, trying to figure out which bill to pay and which one could wait. The stress was constant. Every time the phone rang, I wondered if it was another collector. Every trip to the mailbox brought another reminder of how deep in the hole I was.

That’s why I want to share something that actually works to get you out of debt. Not another complicated system. Not another budget spreadsheet that’ll collect dust on your computer. A real solution that helped me break free from debt – and keeps working because it’s built on how your brain actually handles money. It’s called the debt snowball method, and I’m going to show you exactly how to use it.

Also See: 6 Things To Give Up And Get Out Of Debt

Why Your Mind Controls Your Money

Your mind is the key to getting out of debt. Not your calculator. Not your spreadsheet. Your mind.

This might sound weird coming from someone who’s going to teach you about money. But after going through my own debt journey and helping thousands of others, I’ve learned something important: Getting out of debt isn’t about math. It’s about momentum.

Like a snowball rolling downhill, each debt you pay off adds to your momentum, making the next one easier to tackle. Most people try to attack their highest interest rate debt first. On paper, this saves money. But you know what? Most people also fail to get out of debt because they lose motivation before seeing results.

Also See: What $37,000 in Debt Taught Me About Money

What Is the Debt Snowball?

The debt snowball method, created by financial expert Dave Ramsey, works with your psychology, not against it. Instead of focusing on saving money through interest rates, this method focuses on changing your behavior – and that’s what makes it so powerful.

Think about the last time you achieved something difficult. You probably started small, built confidence, and then tackled bigger challenges. The debt snowball works the same way. You start with your smallest debt and work your way up to the larger ones.

This is how it works:

1. List your debts from smallest to largest (ignore interest rates)
2. Pay minimum payments on everything except your smallest debt
3. Put every extra dollar toward that smallest debt
4. When that debt is gone, roll its payment into the next smallest

That’s it. No complicated math. No fancy strategies. Just a straightforward plan that actually works, whether you’re dealing with small credit card balances or larger loans.

When you pay off that first small debt, something changes in your brain. You see real progress. You feel the weight lift. That success motivates you to tackle the next debt. Each small win builds your confidence until paying off debt becomes a habit, not a struggle.

Sure, you might pay a bit more in interest than if you tackled your highest-interest debt first. But what good is saving a few dollars in interest if you give up before you ever see progress? The debt snowball method keeps you motivated because you see results quickly – and that’s worth more than any interest rate calculation.

How to Start Your Debt Snowball Today

First, gather all your statements. This includes credit cards, store cards, personal loans, student loans – everything except your mortgage. You’ll need:

• Current balances
• Minimum payments
• Due dates

Write down every debt on paper. There’s something powerful about seeing it all in black and white. Order them from smallest to largest balance.

Next, find $20 extra this month. Look at these practical places:

• Cancel unused subscriptions
• Sell items you haven’t used in six months
• Pack lunch twice a week
• Skip two coffee runs

Put that extra money toward your smallest debt while paying minimums on everything else. Next month, try to find $30. Then $40. Small steps create big changes.

Your Next Steps to Become Debt Free

Most people take 18-24 months to become debt-free using this method. But here’s what’s different: You’ll see your first win within a few months. That first paid-off debt changes everything. For the first time, you’ll see that getting out of debt isn’t just something other people do. It’s something YOU can do.

The debt snowball works because it puts you in control. Not your interest rates. Not your creditors. You. Each time you cross a debt off your list, you build more than just momentum – you build confidence. That confidence turns into determination, and that determination is what will carry you through to becoming debt-free.

Start today. Pull out a piece of paper. Write down every debt you have, from smallest to largest. Don’t worry about getting everything perfect – just take that first step. Put an extra $20 toward your smallest debt this month. Next month, make it $30. Small steps add up to big changes when you stick with them. Your future self will thank you for starting now.

The post How To Pay Off Debt With The Debt Snowball Method appeared first on Penny Pinchin' Mom.

Want to know a scary number? The average American household carries over $15,000 in credit card debt, plus $40,780 in auto loans and $58,140 in personal loans. Just making minimum payments barely keeps the balances from growing. On a $15,000 credit card balance alone, minimum payments cost $375 every month—and $300 of that goes straight to interest.

Every time you try to get ahead, something happens. The car needs a $600 repair. The kids need $150 in new shoes. The utility bills jump $85 unexpectedly. Meanwhile, those credit card statements keep arriving, and the numbers keep climbing. Each month of minimum payments adds another $300 in interest charges – that’s $3,600 a year just in interest payments.

But getting out of debt doesn’t require a huge income or a financial miracle. After paying off $37,000 in debt myself, I discovered it comes down to giving up specific habits that keep us stuck. These six changes cost nothing to implement but can save you $500-$1,000 monthly to put toward debt payoff. They’re not always easy, but they work – even on a tight budget.

Also See: What $37,000 in Debt Taught Me About Money

1. Subscriptions You Barely Use

Pull up your bank statement right now. I’ll wait.

Look at all those monthly charges hitting your account. Netflix, Hulu, Disney+, that gym membership you swore you’d use, those subscription boxes that seemed like such a good deal. Each one might seem small, but they add up fast.

My husband and I found $127 in monthly subscriptions we barely used. That’s $1,524 a year – money that could go straight to debt payoff.

Take Action Today:

• List every subscription you have
• Write down the monthly cost of each
• Be honest – which ones do you actually use?
• Cancel everything you haven’t used in the last 30 days

2. The “I Deserve It” Mindset

“I worked hard this week – I deserve this new shirt.”
“I saved money on groceries – I can spend it on something else.”
“It’s been a rough day – I deserve a treat.”

Sound familiar? I used to tell myself these same things. But here’s the truth – you deserve financial freedom more than any temporary purchase.

Take Action Today:

• Track every “I deserve it” purchase for one week
• Write down how you felt before and after buying
• Replace shopping rewards with free alternatives
• Put the money you would have spent directly toward debt

3. Brand Loyalty

Generic brands used to make me nervous. What if they’re not as good? But when I actually tested them against name brands, I couldn’t tell the difference most of the time.

Switching from name-brand to store-brand products saved my family over $200 monthly on groceries and household items. That’s $2,400 a year going toward debt instead of fancy packaging.

Take Action Today:

• List your 5 most expensive brand-name products
• Try the store brand version of each one
• Keep what works, switch back only if there’s a real difference
• Calculate your monthly savings

4. Your Plastic Dependency

This was a big one for me. Swiping a card doesn’t feel like spending money. But hand over twenty actual dollars? That hits different.

When we switched to cash for groceries and everyday spending, our monthly expenses dropped by almost 25%. Why? Because cash is real. You can see it. Feel it. Watch it disappear.

Take Action Today:

• Take out cash for one spending category
• Use envelopes to separate your cash by purpose
• When the envelope’s empty, you’re done spending
• Track the difference between your cash spending and your usual card charges

5. Shopping Without a List

Walking into Target without a list? That’s dangerous territory. I used to go in for toothpaste and come out $100 poorer.

Lists aren’t just about remembering what you need – they’re about remembering what you don’t need.

Take Action Today:

• Make a list before every shopping trip
• Stick to it. No exceptions.
• If it’s not on the list, it doesn’t go in the cart
• Write down everything you wanted to buy but didn’t
• Calculate how much you saved by sticking to your list

6. The “I’ll Start Tomorrow” Excuse

Every day you wait to start tackling your debt costs you money in interest. Real money. Your money.

If you have $15,000 in credit card debt at 18% interest, waiting just one month to start paying it off costs you $225 in interest alone.

Take Action Today:

• Calculate how much interest you’re paying daily
• Pick one thing from this list to give up today
• Move the money you save straight to debt payment
• Set a reminder to check your progress in one week

Next Step

Getting out of debt isn’t easy. If it was, everyone would do it. But it is possible. I know because I’ve done it. Each of these changes might feel small on its own, but together? They’re powerful.

You don’t have to make all these changes at once. Pick one. Start there. But start today. Because tomorrow’s freedom is worth today’s sacrifice.

What will you give up first?

The post 6 Things You Need to Give Up to Get Out of Debt appeared first on Penny Pinchin' Mom.

Bills. Credit cards. Loans. Every time you open your mailbox, your heart sinks a little deeper. You’ve tried budgeting apps, cutting back on coffee runs, and swearing off shopping – but your debt still feels like a mountain you’ll never climb.

I stood exactly where you are now. That pit in your stomach when another bill arrives? The way you avoid looking at your bank balance? The stress headache that comes with every unexpected expense? Been there. My story started with stacks of credit card bills and ended at a bankruptcy courthouse. But that’s not where my story stopped.

Today, I’m debt-free after paying off $37,000 with my husband. Not because we won the lottery or landed six-figure jobs. We succeeded because we built a real plan that worked for our whole family using Dave Ramsey’s methods – and I’m about to show you exactly how we did it.

Also See: What $37,000 in Debt Taught Me About Money

Why Your Numbers Matter Now

When my relationship ended, I faced my finances head-on. No one else helped cover expenses. When I finally put pencil to paper and looked at my real numbers, my stomach dropped. This wasn’t just about tracking spending anymore – I needed a complete money makeover. That’s when I discovered Dave Ramsey’s methods.

I sat at my kitchen table late one night with every bill, credit card statement, and loan document spread out in front of me. The total shocked me: $37,000. Student loans, credit cards, car payments – they all added up to a number that made my hands shake. Maybe you’re afraid to add up your numbers too. But here’s what I learned – knowing your total is the first step to freedom.

My advice to you is to take action right now. Grab every statement. Write down every debt. Include everything:

• Credit card balances and their interest rates
• Student loan totals – both federal and private
• Car loans and their monthly payments
• Personal loans or medical bills
• Any money you owe friends or family

The First Step: Your $1,000 Safety Net

Dave Ramsey calls this your “starter emergency fund,” and it’s your first line of defense against new debt. Before you tackle any other financial goals, this comes first. Why? Because life happens. During our debt-free journey, unexpected expenses popped up constantly – car repairs, medical bills, home repairs. That $1,000 buffer stopped us from adding new debt each time.

How to Build Your First $1,000 Fast:

• Sell unused items – go through closets, garage, storage
• Pick up temporary extra work – delivery, rideshare, overtime
• Cut grocery bills by switching to generic brands and meal planning
• Cancel subscriptions and memberships you rarely use
• Have a “no-spend” week and save every dollar

Set Up The Envelope System

The envelope system sounds old-school, but it transformed our spending habits. The envelope system is a cash-based budgeting method where you withdraw cash each payday and divide it into labeled envelopes for different spending categories like groceries, gas, and entertainment. When you need to buy something, you use cash from the appropriate envelope. Once an envelope is empty, you stop spending in that category until the next payday. This hands-on approach makes your spending more intentional since you physically see your money decreasing, helping you stick to your budget and avoid overspending.

While super convenient, with debit or credit cards, you don’t feel the money leaving. But watching cash disappear from an envelope? That hits different.

Here’s exactly how we set up our envelope system:

Monthly Budget Categories:

• Groceries: $600 ($150/week)
• Gas: $300
• Entertainment: $200
• Clothing: $100
• Household items: $150
• Eating out: $200

Each payday, we withdrew cash and divided it into labeled envelopes. When grocery money ran low, we got creative with pantry meals. When the entertainment envelope emptied, we found free activities. This system forced us to really think about every purchase.

Tips for Envelope Success:

• Keep a small notebook in each envelope to track spending
• Plan big shopping trips for right after payday
• If you have money left in an envelope, roll it to debt payment
• Never borrow from one envelope to fund another
• Keep envelopes at home – only carry the cash you need for that day

Using The Snowball Method to Get to Financial Freedom:

The snowball method became our secret weapon against debt, which is a debt payoff strategy where you list your debts from smallest to largest balance, regardless of interest rates. While making minimum payments on all debts, you throw every extra dollar at the smallest debt until it’s paid off. Once that debt is gone, you roll its payment into attacking your next smallest debt. Like a snowball rolling downhill, your payment size grows as each debt is eliminated, creating momentum and quick wins that keep you motivated.

We used this tactic and listed every debt from smallest to largest, focusing on one at a time while paying minimums on the rest. Every extra dollar – birthday money, overtime pay, savings from groceries – went to the smallest debt first.

How to Build Your Snowball:

• List every debt with its current balance
• Order them smallest to largest (ignore interest rates)
• Calculate minimum payments for each
• Find your “extra” money:
  • Side hustle income
  • Overtime opportunities
  • Sold items
  • Tax refunds
  • Budget savings
• Track progress visually

Making Family Part of the Journey

Getting our family on board meant changing how we talked about money. Instead of “we can’t afford it,” we started saying “we’re choosing to spend our money on freedom.” Big difference.

We made debt payoff a family priority:

• Created detailed meal plans to cut grocery costs
• Found free entertainment options in our community
• Had regular conversations about our financial goals
• Celebrated milestones without spending money
• Made saving money a team effort

Our Budget Revolution:

Before:

• Random grocery trips: $900/month
• Multiple subscription services: $150/month
• Unplanned eating out: $500/month
• Impulse purchases: $300+/month

After:

• Planned grocery trips: $600/month
• Basic internet and one streaming service: $70/month
• Planned dining out: $200/month
• Zero impulse purchases

Taking Control for Good

That bankruptcy courthouse moment changed everything. But what really transformed our lives was discovering Dave Ramsey’s methods and creating a plan that worked for our family. We followed his steps exactly:

1. Build the $1,000 emergency fund first
2. Use the debt snowball to attack balances
3. Grow emergency fund to 3-6 months of expenses
4. Invest in retirement
5. Save for major purchases

Your Emergency Fund Evolution

After clearing debt, we didn’t stop at $1,000. Building a full emergency fund meant:

• Calculating our essential monthly expenses
• Setting a clear savings target
• Automating transfers to savings
• Using windfalls wisely
• Keeping the money accessible but separate from checking

On tough days, remember Dave’s words: “If you will live like no one else, later you can live like no one else.” We embraced this fully – choosing basic cable over premium packages, cooking at home instead of eating out, driving paid-off cars instead of having payments. Now we enjoy financial peace while watching others struggle with endless payments.

Ready for Your Fresh Start?

1. Save your first $1,000
2. Set up your cash envelopes
3. List your debts smallest to largest
4. Attack that smallest debt with everything you’ve got
5. Download my free debt snowball tracker to mark your progress

Getting out of debt isn’t just about money – this journey changes your whole relationship with it. You’ll start sleeping better knowing you’re in control. You’ll feel proud watching your balances drop. Most importantly, you’ll know that financial freedom isn’t just possible – it’s inevitable when you follow the plan.

The post The 5 Best Dave Ramsey Money Saving Tips (That Got Me Out of Debt) appeared first on Penny Pinchin' Mom.

Without proper management, debt can quite literally bury you alive. The best way to consolidate debt without hurting credit is also the best way to get out of debt.

But here’s the thing: you can’t, or, should I say, shouldn’t, simply pay off all your debts and refrain from borrowing ever again. That’s just not good.

To have a healthy credit score, lenders need to know that you can borrow from them and pay them back in a timely fashion. To do that, they check your credit history.

The word history is a little misleading because what they really want to see is how you have been servicing your loans, both past and current. If you only have the past and no current, lenders get a bit skittish.

What Is Debt Consolidation?

In simple terms, debt consolidation means gathering all your debts under one roof. This means taking all or most of your loans and then refinancing them into a single loan held by one lender, making it easier and often cheaper to pay off.

According to research, the total consumer debt balance in America rose to $17.06 trillion in 2023, up from $16.38 trillion back in 2022. If that trend remains the same, as it promises to, this number will rise again this year.

The fact that there’s money available for you to borrow isn’t the problem. The problem is how expensive that new loan is to you (which depends on your credit score) and how much of your lifestyle it affects.

The Smart Way to Consolidate Debt

If you want to make sure that both aspects are favorable, the best approach is to learn the best way to consolidate debt without hurting credit. Here are some tips that should help.

Get to Know Your Debts

“Today, there are three kinds of people: the haves, the have-nots, and the have-not-paid-for-what-they-haves.” – Earl Wilson

The first thing you need to do is make a list of all your current loans and debt payments. This includes your credit cards, student loans, business loans—you name it.

What you are looking for here is the total amount, the interest rates, and the minimum monthly payment.

Choose Your Consolidation Vehicle

There are many different debt consolidation vehicles you could use. However, I’ve found these three to be the most logical (at least for me).

Personal Loan

You could choose to take out a personal loan that covers all your outstanding debts (and leaves you with some “walking around” money).

This loan will come with interest, and depending on your current credit score, that interest rate might be more favorable than all the above interest rates combined.

Use this loan to pay off all your outstanding loans, which will leave you with just this one loan and one monthly payment to service.

Home Equity Loan

This is another interesting option. Home equity loans often have lower interest rates than most other loans on the market.

Not only will your house act as security for the loan, but you can even use this loan to get some tax benefits, provided you use some of that money to improve your home. Win-win!

Balance Transfer Credit Card

You could get yourself a balance transfer credit card if your outstanding loans aren’t that massive. Depending on the credit card balance transfer card you get, you can transfer up to 90% of your entire credit limit, but in many cases, it will be capped at 75%.

Be sure to do your research into what is available for you. This is where you want to pay close attention to the terms and conditions. I do want to add a bit of a warning here too. When it comes to using a balance transfer credit card, you definitely need to be careful.

If not, you can find yourself making mistakes with your balances that will just push you even more into debt. So, don’t go racking up more credit card debt, and use the card responsibly until you have met your goals.

Pro Tip: All these hard inquiries will leave a dent in your credit score. So be sure to apply for whichever option you choose within two weeks to minimize the damage.

Also See: How to Fix Your Bad Credit Score

Can Debt Consolidation Damage Your Credit Score?

Yes, temporarily. Any time you inquire about a loan, the lender will perform what is known as a hard inquiry to check your credit score and history. These hard inquiries do put a dent in your credit score (up to 10 points), but for only a year.

Once you’ve consolidated your debt, you are probably going to close a few credit accounts. This action also negatively affects your credit score since the average age of all your credit accounts makes up 15% of the score.

The higher the age of your credit accounts, the better your score. Any time you close an old account and open a new one, the average age decreases. The trick is to try to minimize how many of your old credit accounts you close.

What I do is keep most of my old credit cards open, even if I don’t intend to use them. Just leave them open so they remain active, and keep pushing up the average age of your credit accounts.

Alternatives to Debt Consolidation

Suppose you’ve done your research and looked into the debt consolidation loan options available to you only to determine that none are favorable (high-interest rates and whatnot). In that case, you still have some options that could help you manage it better or even get out of existing debt entirely.

Also See: The Honest Truth About Debt Consolidation

Budget

Start by creating a realistic budget that includes an aggressive debt repayment plan. This won’t be easy at first, but it’s necessary. One of the main reasons millions of Americans are in the same position as you is that we tend to spend more than we have or can afford to. A budget is a great place to start.

Debt Management Plan

Get professional help. Yes, I know. It sounds like you are just adding more bills by hiring a professional, but it’s well worth it. Getting a debt management plan will give you a realistic view of where you are and what you need to do to get from there to a debt-free place.

Another option would be to educate yourself as much as possible. My debt-free journey began when I took this Financial Reboot Course.

While it doesn’t highlight the best way to consolidate debt without hurting credit, it does point out excellent financial habits that will not only get you out of debt but keep you out while helping you grow your family wealth.

The post Best Way to Consolidate Debt Without Hurting Credit – Smart Money Moves For Moms appeared first on Penny Pinchin' Mom.

Should you pay off debt or save?

So, you want to get started on debt repayment so you can focus on other financial goals? However, if you pay off these debts, there will be nothing left for investments in these tough financial times. You are one emergency short of losing track of your finances. What gives?

If you are confused about whether you should pay off debt or save, you are not alone, although everyone’s financial situation is different. Fortunately, it doesn’t have to be an either/ or predicament anymore; you can do both successfully. The right move depends on your specific circumstances.

Should you pay off debt or save? We’ll start by considering each option separately.

Advantages of Paying Off Debt

From a purely financial point of view, it makes more sense to focus on debt payoff rather than directing available cash to a savings account.

From a personal point of view, I much prefer living debt free. Before I took up my Financial Reboot journey, I was more focused on growing my savings accounts as opposed to paying off debt first. The problem is, every time I sent money to my savings account, I would mentally think about how much that amount would have reduced my debt.

It got to a point where my savings weren’t mentally registering as my savings but as my potential debt reduction. Say for example, if I put $500 away this month but still had $9,000 in debt, I would immediately think, I potentially only owe $8,500 but have $0 in savings.

Eventually, I decided to focus on debt reduction first and then savings once I was done with the debts. It’s a dangerous game to play because we always need savings, but my mind just wouldn’t let it be. Doing this actually gave me the peace of mind that I needed to focus on my financial goals. And there are tons of other benefits as well.

Saving on Interest

You will be decreasing your debt as well as the amount you’ll pay in interest over time, which is a good thing. It reduces the overall time that the interest will accrue as well as the balance on which it is calculated. The saving potential is higher for longer-term loans with high interest rates. High interest charges make it harder to put money aside for saving.

Improving Your Future Borrowing Terms

Paying off your existing loans improves your odds of getting other facilities under better terms. The lender will be more confident and willing to extend another facility because you are a responsible borrower. Your positive credit report will encourage other lenders to grant similar facilities.

Your risk profile goes down as you are no longer a first-time borrower, and your debt-to-income ratio goes down along with your credit utilization rate. This allows you to negotiate better loan terms, increasing your borrowing capacity.

Peace of Mind

There is a sense of financial freedom that comes with the reduction of the burden on your income. You will also have more disposable income to devote to your other financial goals.

Saving Through Paying Off Debt

Once you pay off the debt, you can begin to earn interest income on the money you would have spent each month on debt payments. This makes it easier to save money, invest for a more long-term financial goal, and even add to your retirement savings.

Also See: How to Save Money From Salary Without Sacrificing Your Lifestyle

Drawbacks of Paying Off Debt With Limited Resources

As unbelievable as it might be, paying off your debts has some disadvantages.

The Opportunity Cost

The potential for higher returns from possible investments that you will be forced to forego. This is why you should pay off your high-interest debts like credit cards first.

When Your Loan Terms Include Prepayment Penalties

Before you decide to pay off the loan early, you should review your loan contract with a fine tooth comb. Hidden in the terms might be clauses with penalties for early repayment. They are included to discourage you from settling early so that the lender can recoup some of the anticipated interest, even when you don’t go the full term.

If there is such a clause, you should compare the amount payable to what you are about to save from interest to determine if paying off the debt is an overall gain or loss.

Advantages of Saving Despite Debts

Building an Emergency Fund

Building an emergency savings fund is the top reason to make saving a priority overpaying down debt. Even a small cushion of emergency savings can stop you from sinking further into debt when you are hit with an unexpected expense.

The best way to get out of existing debt when your credit card balances are high is to stop charging them and live within your limits as you pay them down. This is hard to sustain without an emergency savings fund, which offers a cheaper alternative to charging the card.

Before you start paying off multiple debts, come up with an emergency savings goal to cover unexpected events. I would recommend that you have at least six months to a year’s worth of your monthly expenses saved in the event of a job loss or an unexpected emergency.

Taking Advantage of Investment Opportunities

Saving allows you to invest without incurring facilitation fees or taking up credit facilities that will ultimately eat into your personal finance returns. This means you earn more than if you were to source for funds from a third party.

Limitations of Saving With Unpaid Debt

It is unlikely that you will earn as much interest on your savings if you have to pay interest on your expensive debt. Look at how much interest you are paying on your short-term debts. If the interest outweighs the savings interest, you are better off paying the expensive debt first. You don’t want to discover you are operating at a net loss when it’s too late.

Balancing Between Paying Off Debt and Saving

My personal approach is to do both concurrently; save for my goals while repaying my loans on time. However, with limited funds to work with, you may have to choose between the two every once in a while and work out a balance the rest of the time.

A lower debt balance saves you money in the form of interest while saving gives you control over your investments. It’s a question of how to ensure the gains outweigh the losses.

Wiping out high-interest debt on a timely basis will reduce the amount of total interest you’ll pay eventually while freeing up money in your budget for other uses. On the other hand, if your savings are depleted in the process, you may end up with more credit card debt if you are hit with unplanned expenses.

When the debts are too expensive, they might prevent you from making any headway with the savings. You will need to handle them first, even if your emergency fund is nonexistent.

Start by taking note of the interest you are paying on all your loans and prioritize them for payment, starting with the most expensive. Try to cover at least the minimum monthly payment on all your loans so that you don’t incur charges and penalties.

Keep in mind that if you only pay the minimum monthly payment on your credit cards, you will just be preventing the existing debt from increasing, but the balance will not go down significantly. If you want to make an actual impact, you have to pay a little more than the minimum.

When this is handled, which doesn’t necessarily have to wait for you to be debt-free, you can shift your focus back to your three- to six-month emergency fund.

Some debts like mortgages and personal loans don’t need to be paid off straight away. High-interest debt like credit and store cards, unauthorized overdrafts, catalog shopping, and private student loans should be the first to go.

Start considering investment strategies as you pay off your debt. You need savings for emergencies, investments, and to get out of debt.

Bottom Line?

In a nutshell, it makes sense to pay off your expensive loans if your borrowing expenses outweigh what you are getting as interest on your savings. It is also good practice to ensure you have access to emergency funds, which range from three to six months’ earnings, that will not incur charges before you decide to go down this road.

When it comes to the optimum application of your earnings between debt payment and saving, every household has unique requirements, so I won’t pretend to have a universally applicable ratio. You will have to look at your financial circumstances to come up with the right balance.

The post The Age Old Question: Should You Pay Off Debt or Save? appeared first on Penny Pinchin' Mom.

How much is too much credit card debt? According to CBS News, Americans owe almost a trillion dollars ($986 billion) in credit card debt.

About 35% of Americans carry credit card debt from month to month. There’s no doubt that credit cards can be convenient in financial emergencies, but how much is too much credit card debt?

How Much Credit Card Debt Is Too Much?

I will not stand here and pretend to be holier than thou when it comes to debt. Credit card debt is something I have struggled with in my life. It got so bad that I had to quickly educate myself on how to get out of debt, and I did! That, however, doesn’t mean that I didn’t make many mistakes while trying to dig myself out of the mountain of credit card debt I had.

But through that all, I learned how to stay and remain afloat. And it all starts with finding out how much credit card debt is too much for you! We’re all different, and my financial situation isn’t necessarily the same as yours.

What would qualify as too much credit card debt for me might just be a blip on the financial radar for you, but it could also send someone else into bankruptcy.

So, how much is too much credit card debt for you? When you find that:

• You are struggling or are unable to make the minimum credit card payment
• Most, if not all, of your monthly repayments go towards servicing the credit card debt interest
• Your credit card balance increases each month
• Your credit card debt is making it impossible for you to afford most of your basic needs

Simply put, if your credit card is no longer a convenience but a burden around your financial neck, then you might have too much credit card debt.

Also See: A Mom’s Guide to Smart Money Management

Signs That You Have Too Much Debt

Now, let’s get technical for a bit. I know, I know—no one likes homework. But this is important; it’s how credit companies and credit rating bureaus determine how much of a risk you are, and that determines how much credit you can access and at what interest rate.

You see, it is important!

You can use three main ratios to determine whether you carry too much credit card debt. These are the credit utilization ratio, debt-to-income ratio, and credit card debt ratio.

Let’s look at them one by one.

Credit Utilization Ratio

The credit utilization ratio is calculated by dividing your current total credit card balance by your total credit limit.

Credit utilization   =  your current total balance / your total credit limit

Apart from your credit history, your credit utilization ratio is the most important factor in determining your credit score.

For example, if you have three credit cards, each with a credit limit of $1,000, your total credit limit is $3,000. Now, let’s say you use about $150 on each credit card throughout the month and carry the same credit card balance. Your credit utilization ratio will be $450/$3,000 = 0.15, which is 15%.

Ideally, your credit utilization ratio should not exceed 30%; otherwise, it will begin to negatively affect your credit score.

Debt-to-Income Ratio

Also known as DTI, the debt-to-income ratio is what lenders use to determine whether or not they should give you more money. Lenders typically don’t extend credit to people already holding too much of it. It makes you risky.

Debt-to-income is typically calculated by dividing your total monthly debt payments by your total gross (before taxes) monthly income.

Debt-to-income = your total monthly debt payments / your total gross monthly income

In this case, your gross monthly income is what you make before taxes, while your total monthly debt payments are any debt that will take you more than six months to repay.

These often include things like:

• Insurance
• Mortgage
• Property tax
• Rent
• Student loan
• Auto loan
• Credit card debt

As well as most other personal loans.

When it comes to DTI, anything above 43% is considered too risky.

Credit Card Debt Ratio

Of the three ways to determine whether or not you are carrying too much credit card debt, this is the simplest and most effective for you (the rest lean more towards what credit card companies or lenders use to determine your creditworthiness).

Your credit card debt ratio is calculated by dividing your total monthly credit card payments by your total net monthly income.

Credit card debt ratio = your total monthly credit card payments / your total net monthly income

Your net income is what you have left after taxes and other mandatory deductions. It’s essentially the money you have left to spend, which you use to pay the monthly payment on your credit card bill.

The idea is to keep this ratio under 10% at all times! In short, if your net income comes to around $1,000 every month, the highest credit card debt you should carry for that month should not exceed $100, which is 10% of $1,000.

How to Get Out of Credit Card Debt

Carrying too much credit card debt has consequences:

• Your credit score will take a hit, which means you’ll have a harder time getting good, affordable credit in the future
• You’ll accrue a lot of interest, which only goes toward pushing you deeper into debt
• You won’t be able to afford what you like and need, affecting your mental health

It’s paramount you find ways to get out of debt if you find that you are carrying too much of it.

Here are some tips that can help:

• Get the full picture: List all your income sources (monthly), all your expenses, and all your debts. This will give you a clear picture of your financial situation.
• Consolidate your debt: Try as much as you can to put all your debt on one credit card—the one with the lowest interest rate—and then get rid of the rest.
  • Also See: Best Way to Consolidate Debt Without Hurting Your Credit
• Create a budget: By now, you all know I’m crazy about creating a budget. I have found it one of the best ways to manage your finances.
• Get professional help: If all this is overwhelming, you might consider getting professional help from a financial advisor or an accountant who can offer credit counseling. While it might seem like just a way to add more debt to your list, in the long run, the money you pay for credit counseling might help you get out of debt and live a more financially sound lifestyle.

Check out my Financial Reboot Course if you want to reorganize your finances as soon as possible!

The post How Much Is Too Much Credit Card Debt − All You Need to Know appeared first on Penny Pinchin' Mom.

Have you ever wanted to learn how to find out when those items you need will be on sale?  Believe it or not, stores usually cycle sales on schedules.  By learning how your store does this, you can always get the best deals and know when to stock up and when to pass on those deals.  The secret is learning how to use a price book.

A price book is also called a grocery price book.  And, it is just what it sounds like – a book that tracks the prices of the items you need at the stores where you shop.

A Price Book is a list of the products you purchase and the prices you pay
to watch for sales trends and cycles.

It will take time to create yours, but once you have it set up, it is easy to maintain and will help you know when those prices are at their lowest, allowing you to stock up and save as much as possible.

How Do I Make a Grocery Pricebook?

You want to make sure that what you use is simple enough that you can maintain it.  If you are a techy person, you might want to use something on your smartphone.  If you are a paper list maker, then you might want to go with an easier method like a spiral notebook or binder with inserts.  You can even create a spreadsheet on your computer.   The way you track does not matter.  What matters is that you just do it.

You will want to keep the list organized, however, by breaking it down by the department or possibly even product.  For instance, you will want one sheet for your dairy items, one for meat, one for produce, one for breakfast foods, etc.  That way, when you need to find the prices (and update it), you can easily find it.

What Do You Include in the Book?

No matter which method is used to create your book, you will want to make sure to keep track of the products you purchase.  These will include:

• Date
• Store
• Product/Brand
• Size (oz, product count, etc.)
• Price
• Per unit price

You can create your own form, or you can print one out below.  Just click the image to learn how you can get one that you can use.

How Do I Create My Price Book?

The simplest thing to do is to start keeping your receipts.  Once you shop, write down the information based on what you purchased.  It takes a little work upfront to get started, but eventually, the book will be easy to maintain, and you’ll get the hang of it.

To calculate your per unit prices, you will need to make sure you know the product size.  That might mean extra notes when you shop or update the price book as you put your groceries away.  To determine a per unit price, take the price and divide that by the size.  For example, if you are looking at diapers, you would calculate the price per diaper as follows:

$17.49 / 84  = $0.20 per diaper

You can simplify this even more by updating a price book while you shop.  Most stores have the per unit price listed right on the shelf for you.  That makes it simpler for you as you can just write down the price in your book.

Do I Ever Change the Price?

Yes!  That is the reason a Price Book works!  As you shop, you might have a price for an item listed in your booklet, but you find it on sale for less.  You will want to update that price in your book as that means there was a sale.

When you see it on sale again the next time, you might start to learn the sales cycle, such as every six weeks or every 12 weeks.  Doing this is how you learn when to shop for the items you need.

How Do I Make the This Work for Me?

Before you shop, you will want to consult your price book to see if the items on sale are the lowest price or if you know you can get a better deal.  If your Price Book shows a lower price, it doesn’t mean you shouldn’t buy that product.  It just means only purchasing whatever amount you need to get by until the item goes on sale again at the lower price.

On the flip side of this, if you find that the price in the weekly ad is lower than what you show in your price book, it might mean that you not only need to update your price book pricing, but it also will let you know that it is a good time to stock up at this low price!

Does the Book Do More Than Share Sales Cycles?

It sure does!  If you find a great coupon, you will know in advance about what you will pay at the store.  Your price book helps you determine which store you want to shop at so you can use the coupon for the best deal.

A price book can also help with your budget.  If you find that you’ve got “too much month and not enough money” left until your next payday, you can make your list and know ahead of time what you can expect to pay at checkout.  This way, there are no surprises, and you can adjust your shopping list before you shop!

The post How to Use a Grocery Price Book to Get the Best Deals appeared first on Penny Pinchin' Mom.

Ten years ago, my husband and I began our journey to pay off more than $37,000 in debt.  It took a little more than 2 years, but we reached our goal.

Was it easy? Not at all.  But, it was worth it.

As you read my posts, it may seem like I have a great system to help teach others to get out of debt. I know what to do and what to avoid.  But, that wasn’t always the case.

When we began our journey, we knew nothing. In fact, we made a lot of mistakes.  A LOT of them.  In the moment, we felt as if we knew nothing.  However, looking back, we had to make those mistakes in order to reach our goal to become debt free.

Other helpful articles:

• How You Can Get Out of Debt (Even If You Don’t Make Much Money)
• 10 Crucial Steps for Getting out Debt
• How You Can Stay Motivated When Getting Out of Debt

MISTAKES WE MADE WHEN GETTING OUT OF DEBT

Which mistakes did we make and how did we overcome them?  I’m giving you insight into my life, so you can avoid making these same blunders while you work yourself out of debt.

1. Not knowing our spending patterns

We really did not look at what we were spending our money.  Not doing so led us to make the second mistake getting out of debt.

When we took the time to develop our spending plan, we had a more accurate picture of our spending lifestyle

2. We didn’t have a complete budget

As mentioned above, we didn’t really know where were were spending money.  As a result, some of our first budgets were not accurate.  They weren’t even close.

Once you have a workable budget, you will be able to see where your money goes.

3. Not changing our lifestyle

Getting out of debt should not be fun.  It should not be easy.  In the beginning of our journey, we tried to life the same life we had all long.  When we finally woke up and said, “DUH!” we were able to change things, such as dining out and were on track to get out of debt.

The lifestyle we lived was why we had debt.  Without making this change, we were not only destined to make the same mistakes, but also create more challenges for ourselves to pay off our debt.

4. Not understanding our money attitude

When I declared bankruptcy in 2002, it was the lowest moment of my life. I knew I never wanted to go down that path again. Sure, I knew I should not get into debt, but the problem was that I didn’t know the why behind what lead me there.

Once I figured out my attitude towards money, then things started to change.  My husband did the same.  And, our views were not the same at all.  Not even close.  That lead us to mistake #5.

5.  Not being on the same page with one another

Have a different view money was another mistake I made when getting out of debt.  I had my thoughts.  He had his.  We started having several discussions about money.  We learned more about not only one another, but also about ourselves.

Once we had these discussions, we were able to have more compassion and understanding about one another and worked together to develop a plan that worked for both of us.

6. Not finding more ways to save

We can all do better about saving money.  Even years later, I still need reminders and ideas to help us save money.  When we were getting out of debt, we just tried to make the budget work as it was.

We did make some lifestyle changes, such as scaling back on cable and not dining out.  However, we didn’t look at other ways to lower our spending.

The first line item I looked at was groceries.  We were spending more than $150 a week on groceries – for our family of 4!  I knew I had to find a way to save.  At that time, the only option available was coupons.  There were not some of the great apps such as Ibotta, Target Cartwheel or Checkout 51.  Once I figured out how to make those coupons work for our family, our spending went down and we had more money for our debt.

As great as it was to reduce our spending, the best thing that came from me figuring out these money saving tactics was this site.

7. Not making more money

When we were working on getting out of debt, I was a stay-at-home mom.  My husband was making a decent income. I did not want to get a job.  But, if we really wanted to get out of debt quickly, I had to find a way to make money.

As stated in #6 above, I began to make changes to our grocery budget and started my site.  After I began my site, I realized that I could make money doing this!  Once I figured that out, I started working even harder so I could make even more.

This site is one of the reasons we were able to pay off our debt as quickly as we did. The additional money we made went towards our debt.  Every. Single. Penny.

While starting a blog is one way to make money, there are countless other ideas and tactics you can use to increase your income by working for yourself or trying out unique side hustles.

8. Not having a goal in mind

When we started, we just said that we wanted to get out of debt.  However, that wasn’t really a “goal” per se.  Once we said that we wanted to get out of debt so we could save to buy a new pickup, we had an actual goal.

Getting out of debt is a goal, but it did not have a prize at the end for us.  We couldn’t picture a life without debt, but we could imagine that pick-up sitting in the driveway.

A clearly defined goal really helped us figure out what we really wanted to achieve by getting out of debt.

9. Keeping our plan visible

We started off right away by creating a debt snowball.  So, we knew what we wanted to do.  However, the numbers were on Excel, on a computer.  It wasn’t visual.

One day, I decided to make a list and put it on fridge. Each time we saw it, we could see where we were before and where we were headed.  That visual reminder helped us know that we did not need to go out to dinner.  It kept my weekly grocery budget where it needed to be.

Not only that, but we had pride in what we were doing.  We saw that we had already paid of $x in debt.  That was to be celebrated as it wasn’t easy, but we were doing it.

If you’re just starting your journey to get out of debt, don’t worry. You will probably also make mistakes along the way. Hopefully, after reading this, you’ll avoid making the same mistakes we did. But, regardless of what happens, just be sure to learn from them and keep moving forward to your goal.

The post Mistakes We Made Getting Out of Debt appeared first on Penny Pinchin' Mom.

When it comes to trying to get out of debt, I’ve seen and heard it all.  From the person who gets three jobs to the guy who sold his dream car – just to make it all happen.  It got me thinking – what are some of the craziest ideas out there to help you find your way out of debt?

I decided to make a fun post about the craziest ideas people have tried just to try to get their debts paid off.  The funniest thing is that these really do work!  Who knows?  Maybe one of these will inspire you too!

50 IDEAS TO HELP YOU GET OUT OF DEBT

SELL ITEMS

Things are that – just things.  They don’t define us, and they don’t always make us completely happy.  My husband and I sold so many items when we were trying to get out of debt that we were able to raise more than $1,000.  The thing is – I can’t even remember what we sold (which proves that they were things we obviously did not really need).  Here are some unconventional ideas of things you can sell:

1. Hair.  This may sound bizarre, but people will pay for long hair!  Crafters often use it for making dolls, so they will pay to buy it.  You will need to have at least 10″ or more to sell, and the price will vary greatly. You can visit eBay to learn more and get started.

2. Toilet paper / paper towel rolls.  Have you been on Pinterest and seen the number of craft projects which require a paper towel or toilet paper tubes?  They are all over the place!

You can get onto local sites such as Wallapop, Craigslist or even visit eBay and list your products for sale.  It may sound crazy, but it actually can work.

3. Gift cards.  If you get a gift card for any reason, be it a return or even a gift, you can turn around and sell the card.  You won’t get quite face value for it, but you also can at least get paid cold hard cash.

They don’t have even to have the full value on them.  For instance, if you had a $100 gift card to your favorite sporting goods store, but you only have used $26.48, you can still sell your card, and another person can use the remaining balance.

4. Daily Deal vouchers.  Did you buy a deal on LivingSocial and haven’t yet redeemed the voucher, you can sell it.

5.  Sell things you don’t need.  Use eBay, Craigslist or LetGo to sell the stuff you do not need anymore.  Go through your home and decide what you need and what you could sell to raise some quick funds to pay off your debt!

SIMPLE IDEAS

These are things that just make sense and most people think about…but you may not have thought of every one of them!

6.  Budget.  Of course, it seems this should go without saying, but it is not always obvious. If you don’t have a budget, you have no control of your money.  Learn How to Create a Budget.

7. Coupons.  Start using coupons to save as much as you possibly can at the grocery store.  Then, use the amount you save to pay towards your debt! Read more about How to Use Coupons.

8. Change where you shop.  If you live near an Aldi, start to buy groceries there.  Skip the clothing store and find consignment stores to find gently used clothes.  Read more about How to Shop at Aldi.

9. No more dinners out.  This is a tough one, but it works.  Best of all, it’s not something you will have to give up forever!  Just think, if you spend $100 or more a month dining out, that is more than $1,000 to pay towards your debt in just one year!

If you do have dinner out, skip the soft drinks and go for water instead, which is free!  Make sure you also pass on the appetizers and consider splitting a larger entree to pay less.

10. Give up your expensive hobbies.  If you are an avid golfer, you might give that up for some time and use the monthly dues to pay towards debt. Read some ideas for cheap hobbies.

Also See: How to Save Money Fast – My Top 20 Tips

11. Menu plan.  By planning your meals, you not only know what you will have for dinner, but it also helps you plan your shopping trip.  That ensures you have all you need on hand when you get ready to cook all of your meals – saving you from running to the store for that “one item,” which often leads to more.  Read more about How to Create a Menu Plan.

12. Ask for rate reductions.  Contact your creditors to see if they would lower your interest rate at all. This is not always something that works, but it is definitely worth a few calls to see if it won’t work for you. Learn the tricks to asking for a rate reduction.

13. Avoid paying monthly fees.  If your bank charges monthly fees, ask them to waive them.  If they will not, consider moving to another one which offers free banking.  Even $5 a month is $60 a year that you are giving to them just to have your account.

14. Keep the change.  I always use cash.  I don’t even pay with change.  If the total is $6.42, I hand over $7 and keep the change.  I roll all of this once a year and usually have quite a nice amount saved up.  Best of all – I never miss it!

15.  Overbudget.  This is a fun way to get extra money.  We may budget $300 for groceries every two weeks, but I will do what I can to keep my shopping way under this amount.  Then, I take anything left over at the end of that two weeks and save it (you could use it towards your debt). It’s a fun way to challenge yourself to see how little you can spend!

16.  Change insurance.  Make some calls to find out of you can get a better rate on your auto and home (renter’s) insurance.  You can sometimes find a better deal by bundling or even by increasing your deductibles a bit.

17.  Skip the evening movies.  If you love to visit the movies, try the matinee instead!  You can usually pay less by catching the afternoon show. Make sure you pass on the snacks, too, as those can add up quickly!

18.  Don’t buy books.  Instead of buying books, visit the library or get free Kindle books.  No need to buy them at all, when there are ways you can get them for free!

EXTREME IDEAS

These are ideas that do not work for everyone but have worked to help others get out of debt very quickly!

19. Stop retirement contributions.  If you are in debt, you might want to take that 15% you were saving for retirement and throw it all towards your debt.  As soon as you are debt free, you can start that contribution again (and maybe even do more than that to other accounts).

20. Cancel cable completely. If you really want to go drastic, you need to take all steps necessary to do so.  Cable can run more than $100 (or even more than $150) per month.  If you can cut out cable entirely, you might quickly free up $100 or more every single month!

21. Sell your car.  If you are leasing a vehicle, that is a simple way to throw money away, as you will never own it.  Turn in the vehicle and then take out a loan to purchase a much older car, where you will pay less per month.  Best of all, you will own it in a few short years!

If you have an expensive vehicle, you can also sell that and then purchase an older car, which will reduce your monthly overhead (and possibly taxes and insurance).

22. Move.  If you are renting or even if you own your home, consider downsizing to pay less each month.  I know many people have opted to sell their home and use any income to pay towards debt, and then they rent until they are debt free.  Then, they save to get the house of their dreams, which they can purchase debt free!

23.  Turn off your home phone.  This can run for $30 or more a month.  Just use your cell phone and cancel your home service.

24. Downgrade your cell phone.  Try to reduce the data you use to see if you can’t lower your monthly payment on your cell phone.  Stick with your home internet for most of your data usage, and you can use your phone less and less and rack up the savings.

25.  Swap services.  Instead of paying for babysitting, exchange time with another couple.  You watch their kids for free, and they can do the same for you.  You might be able to swap your tutoring for haircuts or your lawn mowing for handyman repairs.

26.  Make gifts.  Instead of buying people gifts for birthdays and holidays, consider making them yourself.  You could even offer a “service” gift where you will babysit once a month for a year, etc.  Find a way to give from the heart instead.

27.  Budget bill your utilities.  If you can, arrange for budget billing with your services.  This can make it easier to include your budget and will avoid those swings in the summer or the winter when certain utilities may be more expensive.

28.  Drop the gym or country club.  If you have a membership of any sort, just cancel it.  If you work out at the gym, try to find free videos you can follow at home or create your own workout plan. If you like to golf, go with a friend instead of paying for your membership.

29.  No more coffee trips.  Make your coffee at home each morning and cancel that run through the drive-thru.

30.   Take your lunch.  It is great to go out to lunch every day, but pack your lunch, and you’ll ensure you eat up leftovers.  Not only will you waste less food, but you’ll also save a nice chunk of money every month.

31.  Carpool.  Take turns driving to work and save money on fuel and also wear and tear on your vehicle.

32.   Set up no spend months.  This is a tough one, but see if you can go a few weeks without spending anything more than you need to survive.  That means no dining out.  No entertainment.  No clothes.  Just food and fuel, and that’s it!

MAKE MONEY

This is a bit different than working from home.  These ideas help you make a bit more money just doing things you might already do – like search the internet, shop, etc.  These sites will pay you money to do just that.  Then, turn around and apply anything you make towards your savings.

33. Swagbucks. Use this site to get paid for doing searches and other things you normally do online!

34. Sell crafts on Etsy. If you are good at crocheting, woodworking or anything at all, look at selling your wares on Etsy. It is a simple platform, and the costs are very low, which allows you to keep most of what you make from each sale.

35. Rent a room in your home.  If you have a walk-out basement, consider renting out the space to make more money.  Just check with your local laws and homeowner’s association to ensure this is allowed before you jump in to start this one.

36. Sell stocks.  If you have investments, considering selling them and using the proceeds to pay toward your debt.

37. Give music lessons.  If you know an instrument or you can sing, consider selling your time to help teach others.

38. Tutor.  Find your expertise and teach others.  You never know who you might be able to help!

39. Start a blog.  You may not get rich with your blog, but it can turn into a nice stream of income!  Learn more about How to Start a Blog.

40.  Visit garage sales and upcycle.  Find items very inexpensive at yard or garage sales.  Put in some elbow grease, paint, and creativity and turn them into something you can sell for a profit.  Check out flea markets and farmer’s markets for larger items and for places where you can sell your items.

Also See: 10 Items to Sell at a Yard Sale (and Make the Most Money)

41.  Find holiday work.  When the holidays roll around, many stores hire employees for a short 6 – 8 week period.  Sign up and put in some extra time after your regular job and make some extra cash you can use to pay down your debt.

42.  Become a mystery shopper.  This is a great way to get some things for free.  This is not a way to get rich but is an excellent way to get some of the things you need for free (which allows you more money to pay towards your debt).

43. Become an eBay master.  Purchase items on clearance or at deep discounts and then sell them for a profit on eBay.   You can still offer prices which are less than in the store, but more than you paid.

44.  Ask for a raise.  Don’t be afraid to ask for one.  Make sure you share the additional work or responsibilities you’ve taken on as a reason why.  Or, if it has been a while since you last had a raise, you can mention that too.  It never hurts to try.

45.  Sell an eBook.  If you are an expert in any field, or if you love to write, create a book you can sell on Amazon!

MENTAL

While there are things that you can physically do to save or to make money, you need to get your brain into the right mindset too.

46.  Make your goal visible.  If you want to get out of debt so you can afford to save for a vacation, tape a photo of the destination where you see it each day.  It could be on your office wall, bathroom mirror or refrigerator.

47.  Learn to be happy with less.  Sure, a new TV might be fun to own. It could be enjoyable to go out to dinner.  However, do you need those things?  Probably not.  Find a way to be happy spending time at home spending no money at all, and you’ll realize how much those things don’t matter.

48.  Learn to say no.  You may need to tell friends you can’t go out to dinner.  It may mean telling the kids that they can’t get that treat at the grocery store. You may need to say to yourself that you do not need to grab that afternoon latte.  Learning to say no can easily keep more money in your pocket.

49.  Give more.  This may seem crazy, but it actually works.  When you give more of yourself to others, you feel better.  Best of all, giving is not always financial. It can mean your time or even your prayers.

50. Surround yourself with the right people. If your friends encourage you to spend money, then you might want to distance yourself from them (at least until you can get better control over your finances and self-control).  Find other people who think like you do so that they can encourage and build you up.

There you’ve got it.  Fifty ways to help get you out of debt!  Which are you getting ready to try?

The post 50 Ideas To Help You Get Out of Debt! appeared first on Penny Pinchin' Mom.

It is tax season!

You know the goal is not to get much of a refund.

However, a refund is always better than paying in!

But when that money shows in your account don’t go and blow it on what you want!  Make some smart moves with your refund.

Pay off debt

If you have debt then that means you should not have fun with any extra money. Nope. Every penny that you earn (beyond your regular income) should be used to pay off your debt.

While some experts will claim to pay the bill with the highest interest rate, I recommend paying the lowest balances first.  The reason is you see results.

If you are getting $2,000 back and owe $500, $1500 and $2500, pay off two of your bills. Now,  you’ve got one payment and can roll all three monthly payments into one and pay that largest bill off more quickly.

You see progress in moving from three debts to one and that alone can be enough to keep you motivated.

Build your emergency fund

Experts used to say that your emergency fund should be three months of income for a family.  After watching many struggle through the last recession, I recommend it be six-nine months instead!

I get that is a LOT of money to save up, but your tax refund can be the perfect way to build up your savings.  But don’t put it in your regular savings account. You don’t want to be tempted to spend it.

Set up a new account at your bank. Deposit your refund into the account that is for emergencies only. Don’t touch it.

Now you’ve got money earmarked for your emergencies and should never touch it unless absolutely necessary.

Invest in your future

It is fun to spend money now but if your retirement accounts have taken a beating (or if they are non-existent) it is time to make that investment.

Visit with a financial expert and set up an IRA or other type of retirement savings account and invest that money.  That $1,000 you fund today will be worth much more when it is time to cash it in.

Make upgrades

Look around your house for appliances or vehicles that may need to soon be replaced. When you catch a sale, make the investment now. Don’t wait for it to break down completely.

If you do wait, you may be forced to pay full price and your money won’t go as far. Being proactive and replacing what needs to be when the price is right is a smart money move.

Make home improvements

Look around the house to see what needs to be repaired or updated. Is the paint starting to peel on the trim? Is the carpet wearing out?

Your house is an investment you’ve made so you need to take care of it. Peeling paint can lead to dry rot. Old carpet could lead to more stains, odors or even damage to the subfloor (which could cost you even more).

Take care of your house so when the time comes to sell, it is in great shape so you can get top dollar.

Do something for yourself

There is nothing wrong with making an investment in your well-being. In fact, it could be a very smart move.

When you feel better about yourself and give yourself the opportunity to get or do things you don’t normally, it changes your perspective.  You get the chance to focus on you and that is a GOOD thing.

Splurge on that handbag. Go out to dinner. Set up that spa day. Just don’t go too overboard.

Spend it as a family

You can also get the family to weigh in what you can do with your refund. You may have no debt; an emergency fund and retirement looks great. That means you can do something fun!

Talk with the kids about what to do with the refund.  It may be a vacation or adventure.  It may mean buying a basketball hoop or bikes for everyone.

Work together to determine the best way to use the money.

A tax refund is your money. Use it wisely.

The post Smart Moves to Make with Your Tax Refund appeared first on Penny Pinchin' Mom.

The packages have been opened. The kids are loving their new toys.  You are enjoying your coffee one morning and reading your mail when you see them…

THE BILLS! Yikes!

It seems you went a little over your budget. It was fun and the joy you brought to your kids’ faces was worth it.

However, now you need to find a way to recover from overspending during the holidays. It is not fun, but is necessary. Here are nine steps you can take to recover from any spending mistakes you made during the holiday shopping season.

1. Put the credit cards on ice – literally

The first thing you need to do is stop spending.  You need to put the credit cards away. Take them out of your wallet and put them in the safe.

Or, if you want to make sure you really do not use them – freeze them in a block of ice! That way, if you do feel the pull to shop, it will take time to thaw out and the urge to spend my pass by then.

2. Calculate the damage

You can’t bury your head in the sand when it comes to seeing the damage done to your budget. Face it head-on.

Total every receipt and credit card statement to find how much was spent. While it may be painful to see the balance due, it is necessary.

When you see that figure in writing, it helps you know what you are facing and where you may need to cut back.

3. Review the budget

 Once you know the amount you need to pay off you also need to review (or create) your monthly budget.   That means including those new monthly payments to the credit card companies.

Make sure your budget is balanced, in that you are not spending more than you take in each month.

4. Create a repayment plan

Up next, you have to create an exit strategy – which will be to pay off those credit card bills. Grab the statements for each and then list them by including the balance and the interest rate.

You may be tempted to pay the highest balance first (which is what I recommend when it comess to getting out of debt). However, when it comes to this debt you just incurred, I recommend starting with the highest interest rate first.

By eliminating that bill quickly, you are reducing the amount of interest you will pay to the credit card company. There is no need to pay them any more than you need to!

Once the first card is paid in full, roll the monthly payment amount into the payment for the next card. Repeat until they are all paid in full.

You’ll not only pay them off quickly but also minimize the total interest paid as well!

5. Reduce your spending

When you have bills to pay it means you need look at the budget to find areas where you can cut back.

It may mean cutting cable or eliminating dining out. You may need to cancel the subscription to the gym or find frugal date night options.

Be willing to make short-term sacrifices for long-term gains as the sooner you can eliminate these bills, the better.

6. Use your bonuses

If you are fortunate enough to get a holiday bonus don’t blow it on what you want. Use that to pay off your holiday bills.

If you don’t get a bonus then use any of that Christmas cash you received for your bills! Look ahead to see if any other money will be coming your way such as birthday money or a tax refund. Earmark that to pay off your holiday spending.

7. Get a side-hustle

If you need to tackle your balances then a side-hustle may be the solution – even if temporary. Look around the house for items to sell. If you are a teacher, consider tutoring students.

Every penny earned can be money used to put towards that holiday spending.

8. Build your savings

You don’t want to find yourself in this same situation again next year. It is not a fun cycle of rinse and repeat.

The holidays come at the same time each year. It is not a surprise or an unplanned expense.  You need to plan for it.

Review the total spent this year and divide that by 12. Focus on saving that amount each month, all year long, and you’ll be able to pay CASH next year and not even use the credit cards.

9. Save using the coin challenge

One simple way to save money for holiday shopping is to switch to a cash budget. Then, save the change and any “leftover” money each pay period.

For example, if you budget $300 for groceries and spend only $270, don’t blow that left-over $30…put it back for the holidays!

The same premise works with change. If the total is $7.49, hand over $8 and put $0.51 into your savings jar.

Saving doesn’t have to be hard

Simple tricks can help you quickly build your savings!

It is easy to spend too much during the holidays but with some smart strategies, you can get your budget back on track.

The post 9 Ways to Recover from Overspending During the Holidays appeared first on Penny Pinchin' Mom.

College is expensive, there’s no debating that fact. The average amount of money borrowed to obtain a bachelor’s degree was $29,000 in 2017/2018, according to the College Board, That’s a whole lotta money (and it’s a number that’s only likely to go up).

If you want to avoid years and years of debt payoff after graduation then it’s up to you to try and keep your costs down. In an effort to help you do that, we’ve compiled a list of 10 ways to save on college.

1. Don’t go to college

This might sound like a joke but it’s not. The point is that before you go off and spend thousands and thousands of dollars on your education you need to make sure that college is the right choice for you. Is it what you really want to do? Are you ready?

Although college has become part of the prescribed life plan (high school — college — marriage — house…), it’s not the only option. You can also choose not to go and pursue other opportunities like entrepreneurship, a gap-year, joining the military or enrolling in a technical school. So, the purpose here is not to deter you from getting a college education but instead to ensure that it’s truly the right choice for the work/life you want to pursue.

2. Live at home

Nothing exemplifies the college experience more than living at home with your mom and dad…right? I know, this might not sound like the most fun way to “do” college. However, if graduating debt-free is a priority then it might be worth it. If you decide to go to a school that’s close to home (and your parents can stand you for another four years) then living with mom and dad can help you to save thousands of dollars on rent, utilities, laundry, and food.

3. Live with roommates

If living at home is not an option then consider renting with roommates. Yes, having your own space can be glorious however, it also comes at a premium price. If you’re serious about saving on college then having a roommate (or five) will help you save on things like rent, utilities, and even streaming services. It will also teach you how to cope with different personalities, which will serve you well when you graduate and enter the real world.

4. Live close to campus

If you live close to campus then you can probably get by without a car. This means no car payments, no insurance payment, and no gas. As an added bonus, you’ll never have to be the designated driver (assuming you’re 21 years old, of course). Instead, take advantage of public transit or bring your bike and get around using your own power.

5. Use your student status

Being a student is expensive but it also comes with a lot of perks! As a student, you’ll often have access to things like free transit passes, free gym memberships, equipment rentals (bike, skis, skates, kayaks), as well as tutoring and counseling services. Your student status might also get you discounted rates to museums, concerts, clothing, car rentals, and technology. To make sure that you don’t miss a student discount opportunity check out this list by Deal Hack.

6. Eat and drink at home

Eating and drinking at a restaurant or bar multiple times a week can get really expensive. Why not learn how to cook (a great life skill!) and save big by eating at home. This is not to say that you should never go out and have fun but if you want to minimize expenses it’s best to avoid multiple nights at the bar and opt for a BYOB potluck at your place.

7. Avoid credit card debt

The last thing you want to do is graduate from school with student loan debt AND credit card debt (a double debt whammy). If you’re going to have a credit card make sure you understand how a credit card works. If you’re not able to pay off your credit card in full each month then it’s probably best to stick to debit or cash.

8. Apply for scholarships

You don’t have to be the best or the brightest to win a scholarship. If you’re willing to put in some time and effort, you probably have a pretty good shot of winning some money. And remember, not all scholarships are based on your GPA. There are scholarships for everything: financial need, athletic ability, minority status, single moms … and so on.

If you’re a high school student — be sure to fill out the Free Application for Federal Student Aid (FAFSA). It’s estimated that $2.6 billion in FAFSA went unclaimed by eligible students for the 2018/2019…ouch!

9. Work, work, work

If you can hack it then get a job while you’re going to school. A great way to avoid debt is to have a continual source of income. In addition to the extra money, having a job is good for the resume, it can help you build your professional network (especially if you’re working in the field you’re going to school for), and juggling multiple obligations will teach you how to be organized and efficient.

10. Find a company that will pay for college

Both Starbucks and Walmart have programs that allow employees to get online degrees for nearly nothing. That’s becoming common at large companies and a surprising number of businesses offer at least some help paying tuition. There are also a number of employers that will help workers pay back their student loans.

You may not want to work at Starbucks, Walmart, or any place else that will pay for college, but it might make sense to suck it up and work for four years or so and come out of it with no debt and some solid employment history.

Just do what you can

When it comes to trying to save on college every little thing helps. While college should be fun, don’t lose sight of why you’re there … to get an education! When it comes to making tough financial decisions think about the position you want to be in when you graduate. You want to put yourself in a position to graduate debt-free (if at all possible) or at least put yourself in position to have a clear and easy plan to pay it off within a few years.

–By Jessica Martel

The post 10 Ways to Save on College  appeared first on Penny Pinchin' Mom.

This is My Debt Free Story. I Hold Nothing Back.

If you’re in debt, you’re not alone. I know what it’s like to look at $37,000 in bills and feel your stomach drop. Every mail delivery brought another reminder of money I owed. Every credit card swipe came with a side of guilt. I’m not writing this as someone who read about debt in a book – I lived it. I had to choose between paying my electric bill or buying food.

Money controlled every part of my life. It affected my sleep, my relationships, and my self-worth. But that same debt that almost broke me? It pushed me to change. It made me learn how to control my money instead of letting it control me.

I’m sharing my story – the real, raw truth of it – because spreadsheets and budgets aren’t what changed my life. What changed was how I thought about and handled money. My story goes from bankruptcy to freedom, and I learned things no financial book could teach me. If you want the truth about getting out of debt (and how to fix it), keep reading.

Life Before Reality Hit (2001)

In 2001, I was a single woman who thought she had it all figured out. I had what I believed was the perfect relationship, a good job, and credit cards that paid for the life I couldn’t actually afford. A budget never crossed my mind – I was too busy buying what I wanted, when I wanted it.

My credit cards weren’t just for emergencies. They paid for gas, groceries, clothes – everything. I hit a new low when I started using one credit card to pay off another. It was a money trick that could only end badly.

Everything Changed (December 2001)

My relationship ended in December 2001. Suddenly, I had to handle everything on my own. No more splitting bills. No more shared expenses. Just me, sitting at my kitchen table with a calculator, finally facing what I’d done to myself.

The numbers hit hard: $37,000 in debt. Zero savings. Nothing but minimum payments eating up my paychecks month after month. I looked around my apartment and saw nothing worth keeping – just clothes I barely wore and memories of meals I couldn’t afford.

My Low Point: Bankruptcy (2002)

August 2002: I stood in bankruptcy court. I never thought I’d be there, but there I was. Standing in front of that judge felt terrible and freeing at the same time. I promised myself that day that I would never end up in that spot again.

Starting Over: A New Life

Life works in weird ways. During my worst financial mess, I met my future husband. He saw past my money mistakes but was smart enough to wait until after my bankruptcy to get married. By June 2003, we were married and working to build better money habits together.

Emma, our daughter, came along 15 months later. We chose for me to stay home with her – it stretched our budget thin, but it matched what we wanted for our family.

Still Learning (2004-2007)

We tried to do better with money, but we weren’t perfect. We stayed away from credit cards, but we still took out a home equity loan and had two car payments. When our son was born in March 2007, we could make the minimum payments – barely.

A New Path Forward

October 2007 changed everything. Our son’s godparents told us about Dave Ramsey’s Total Money Makeover. His plan wasn’t complicated – spend less than you make, save for emergencies, attack your debt. Something about his straight-talk approach worked for us.

What Actually Worked For Us:

1. Writing Down Every Purchase: I kept every receipt and created a budget worksheet to understand where I was really spending money.
2. Using Cash Only: We put cash in envelopes for groceries, fun money, and personal items. When it was gone, that was it.
3. Building a Safety Net: We saved $1,000 first by reducing our expenses by learning how to coupon and finding discounts on the things we needed to buy.
4. Tackling Small Debts First: We listed our debts from smallest to biggest. Each small win pushed us to keep going.
5. Making Extra Money: I started looking for ways to make extra money from home, like babysitting for neighbors and also selling things we didn’t need. Every extra dollar went to debt.

What’s Next For You?

Getting out of debt isn’t about following someone else’s perfect plan. It’s about taking that first scary step of facing your numbers, then taking another, and another. My path went from bankruptcy court to financial stability – not because I’m special, but because I finally got tired of feeling sick every time I opened my mail. The tools were always there: tracking spending, using cash, saving first, and paying off debt. I just had to be ready to use them.

You don’t need to wait for the perfect moment to start. No amount of debt is too big or too small to tackle. Take out those bills. Look at your bank statements. Write down your numbers. That’s where I started, and that’s where you can start too. Your future self will thank you for starting today.

The post What $37,000 in Debt Taught Me About Money appeared first on Penny Pinchin' Mom.

According to NerdWallet, the average credit card debt for the American Family is nearly $16,000.  That is a considerable amount, and the monthly financial burdens can quickly become overwhelming

You may feel as if there is no light at the end of the tunnel as you see no end in site.  How in the world did I let this happen and what can I do about it now?

You certainly do not want to be like me and go down the path of bankruptcy.  Don’t do that.

Instead, you simply need to know where to turn for in order to get the help you need to pay off your credit card debt as quickly as possible.

The truth is that you may not even realize how much debt you have or where to begin.  Let’s tackle your debt by helping you figure out the simplest way to get rid of your credit card debt as fast as possible.

HOW TO QUICKLY PAY OFF CREDIT CARDS

The first thing you have to do is take responsibility for it.  Whether your debt is a result of severe financial times or frivolous spending, it doesn’t matter.  But, before you even think about getting out from beneath your credit card debt, you need to be ready to make it happen.  That means you have to be willing to put in the hard work and make the lifestyle changes necessary to achieve your goals.

Once you do that, you are ready to take steps to pay it off.

1. Transfer your balances to zero or lower balance cards

When you have a lot of credit card debt, you will want to try to lower the amount of interest you pay. Since that compounds every month, it can mean your $50 payment will only reduce the debt by $10.

Take some time to do some research to find zero interest rate transfer cards or those with a low introductory rate.  If you can drop your interest payments, that will allow you to focus on paying off your credit card debts.

By consolidating your credit card debt onto one or two cards, you may find you save a significant amount of money in interest while working to pay off the balances.

2.  Use your house

When mortgage rates are low, it might make sense to refinance your home.  Doing so may allow you take out a loan large enough to cover the balance you owe on your home plus your total credit card debt, without increasing your monthly payment.

If you can borrow more money, you can use that additional amount to pay off your credit card debt.  Then, all of your debt will be in one monthly payment – your mortgage.

Or, if you would rather not refinance, consider taking out a home equity loan.  Use what you’ve paid towards your home to pay off your credit cards.  The interest rate is often lower what your credit card company charges.

3.  Use a personal loan to pay off credit card debt

If you do not own a home, talk to your bank about a personal loan (secured or unsecured). Just like a home equity loan, you can pay off your balances and have a single monthly payment, often at a lower rate than credit card companies charge.

4. Get rid of your cards

If you are committed to paying off your credit card balances cut them up.  That way, you will not be tempted to add more debt to your balance.  However, what you should not do is close the account.  Keep it open and continue to pay on it to help increase your credit score.

For some people, cutting them is just not an option.  If you find this is you, then you need to put your cards on ice.  Literally. Put the card in a baggie filled with water and drop it into your freezer.  Now,  you won’t be tempted to dig it out and use it as you would have to put in a LOT of effort to do so.

Do what you have to do to stop spending.  There is no way around this.  Until you are ready to change your attitude towards spending money, you will not be able to get out of debt.  This starts by cutting off the spending.  Period.

Read more:  How to Break the Cycle of Credit Card Debt

5. Know how much you owe

Sadly, most people have no idea how much credit card debt they have accrued.  You have to know how much you owe before you can implement a plan to pay it off.

Make a list of the current balances owed, minimum monthly payment and the interest rate. Then add up total the amount of debt you have AND the total minimum monthly payments.  This gives you a better picture of the amount of debt you currently have outstanding (and, it may not be pretty to look at).

The debt payoff bundle gives you every form you need to track, monitor and pay off your debt once and for all!!

Download my free Debt Paydown Form!

6. Find money

Once you know how much debt you have to pay off, take a second look at your budget.  Find places where you can cut back to have more money to pay your debt.  That may mean scaling back or eliminating dinner out for a while, so you have another $100 to use towards your credit card balances.

Think about making some short-term sacrifices for long-term gain. You will not need to scale back forever.  Once you are out of debt you may even find you don’t miss those items you cut out of the budget!

7. Start paying them down — One at a time

There are two different rules of thinking when it comes to paying off credit card debts.  One says pay the higher interest rate, and the other says the highest balance.  You can read more about those below.

No matter which method you decide to use, start with ONE debt and work on it first.  Get it paid in full before you try to pay others.

You can use a debt payoff calculator to find out long it will take to pay off your credit cards and know how much you’ll save in interest along the way.

8. Consider debt consolidation

Sometimes, the best way out of debt is to consolidate them all into a single payment.  You may find that you ultimately pay less over the life of the loan vs. what you would pay in interest on each card alone.

While credit card transfers are an option (as mentioned above) you may also want to try debt management or a consolidation program.  These include counselors who may be able to negotiate (on your behalf) to reduce the rates or payment terms.

Rather than make the individual payments on each debt, you make a single payment each month to the agency. They then transfer the payment to the creditor on your behalf.

If you do not own a home or are unable to qualify for a credit card or personal loan then debt consolidation may be the answer.

HOW DO YOU PAY DOWN YOUR CREDIT CARD BALANCES

If you do not opt for one of the options above and instead want to tackle your balances on your own, there are two methods you can use.

Highest Interest Rate First (Avalanche Method)

The avalanche method of debt repayment starts by first tackling the debt with the highest interest rate.  You will want to pay as much as you can towards this debt first, continuing with minimum payments on all other debts.

For example, if the minimum monthly balance is $25, try to double, if not triple, the payment. Combine this amount with any additional income freed up in your budget to pay towards your debt.  Your focus should be only on this single debt until it is paid off.  Continue making the minimum required payments on your other credit card balances.

Once your first card is paid off,  roll the monthly payment you were making on that card onto the next card.  So, if you were paying $150 on card one and $30 on card two each month, you will now pay $180 towards the balance of your credit card. Continue to do this until all of you are debt free.

Using this method results in paying less interest, therefore, less overall debt.  As you tackle the one that accrues interest at a higher rate first, you will eventually pay out less to the company.  The downside is that you may end up tackling an overall higher balance first, which can result in it taking longer to make progress, and you becoming discouraged.

Lowest Balance First (Snowball Method)

The snowball method does not take interest rate into account, but rather balances.  Review your list of debts and find the one that has the lowest balance.  This is the one you will focus on first.

You will follow the same rule as you would if you were paying down the higher interest rate card first.  Find any additional money you can in your budget and add that to the minimum monthly payment of the lowest balance card.  Continue paying on that card until it is paid in full.  Once that happens, roll that payment into the next balance.  Repeat this process until all debts are paid off.

The reason that this works is that it tends to be more encouraging.  You will see that you are actually making progress as you can achieve a balance paid in full more quickly, which gives you the motivation to proceed.  The downside of this method is that you may have to pay a bit more in overall debt due to additional interest on the cards.

The thing is that one of these is not “right or wrong.” I hate when I see so-called experts trying to degrade someone for trying one over the other.  We are all different and we know what will motivate us to help us stay on track.  Decide which of these two works best for you.

8.  Use Windfalls

While you are working yourself out from beneath your mountain of debt, there may be times when extra money finds its way to you.  You may get a raise or a bonus at work.  This may be the year you qualify for a tax refund.  When you get extra money of any amount, do not use it as you want.  Instead, apply it towards your debt.

If you want to tackle this as quickly as possible, you may need to sell things you do not need or even get a second job.  There are many ways you can make money at home, many of which will not interfere with your regular full-time job.

STAYING OUT OF CREDIT CARD DEBT

Once your credit card debt is paid in full, you never want to allow yourself to get into that situation again.  Here are things you need to do:

1. Figure out why you got there in the first place

Was the reason you had debt due to poor saving? Are you a spender? Did you just not have a budget and had to use it to cover living expenses?

Whatever the reason, you need to make sure you know what lead you down that path, to begin with, and make changes in your life so that it doesn’t happen again.

2. Have an emergency fund

Many times, people turn to credit cards when they have an unexpected expense. This is where your emergency fund will come into play. Instead of turning to a credit card to bail you out, you will use your emergency fund balance instead.

Read more:  How to Rapidly Build an Emergency Fund

3. Never charge more than you have in the bank

Far to often, people will charge in advance of a paycheck or other income source they plan on coming their way.  But, what happens if that fails to come through?  Can they pay off the balance?

If you can not pay off your balance with the money in your checking or savings account, then do not charge it.  Just because you are owed money does not mean it will come through.

4. Always pay balances in full every month

It can be tempting not to pay off your card and keep more of the money for yourself.  However, this will just put you back into the same situation you just got out from.  Make sure your entire balance is paid off every single month.  No exceptions.

5. Review the perks

Many people use credit cards because of the perks. These include cash back, free offers or even airline miles.  However, what do you have to spend to earn the reward? Is it worth racking up a hefty balance just to get something free?

Companies can change their programs at any time.  You could lose those you’ve earned or no longer be eligible to earn new ones.  The perks may sound great, but are they really worth it?

Trying to pay off credit card debt is not easy. However, can you continue to live with the financial strain they are causing you? Only you can decide that it is the right time to pay off credit card debt.

The post How To Pay Off Credit Card Debt Faster appeared first on Penny Pinchin' Mom.

So, you want to stop spending money.  That might be easier said than done.  When it comes to managing your money, there are things you need to do.  You know you need to budget, try to get out of debt and control your spending.

The issue is not necessarily that you are spending money on things you don’t have; you just aren’t spending it in the right way.  The issue is not that you don’t make enough money, it is just not having a plan on how to use it once you get it.

That’s what happened to me.  Unfortunately, I didn’t have a plan for my money.  That lead me down a path I did not like.

After years of working without a plan, I found myself on the steps of a courthouse declaring bankruptcy. And, because I did not learn how to make the right changes in managing my money, my husband and I found ourselves in debt a few years later.

The difference with the second time I had debt was that I took responsibility for it.  I owned what happened, and he and I worked together to make changes to not only pay off our debt but never go down that same road again.

If you find yourself in the same situation, you need to make big changes.  To start, you have to stop spending money you don’t have.  Plain and simple.

HOW DO YOU KNOW IF YOU ARE OVERSPENDING?

You’ve maxed out your credit cards

When there is no room to charge anything on your cards, you might have a problem.  In most cases, maxed credit cards signals you are living beyond your means.  If you have to continue to charge because you don’t have money, then you are spending too much.

You can’t find a home for your latest purchase

Your temptation might be electronics or handbags. No matter what you love to buy, you might notice you are running out of room to store things.  When the stuff takes over your home and is causing clutter, it is time to take a long hard look at how you spend money.

Your budget never works

There may be months when you don’t have enough money in your budget to cover your mortgage or food.  When you continually spend money on the wrong things, your budget will not work.

That means if you have just $50 for entertainment, do not spend $75.  That other $25 has to come from another budget line.

You spend more than you earn

Take a look at your credit card balances. You might be paying only the minimum balance because you can’t pay it in full. When you spend more than you make and continue to add more debt, take a look at what you are buying.  It might be time to pull back and stay out of the stores.

HOW TO STOP SPENDING SO MUCH MONEY

Use a budget 

When many people hear the word budget, what they hear is “you don’t get to spend any money.”  That is the opposite of what a budget does.  Your budget is a roadmap.  It shows you where your money should go – including the fun money you want to spend!

Your budget helps you know what you need to do with your money when you get paid.  Look at every penny as an employee of yours.  You get to tell it where it needs to go.  Some of them will go to rent, others to your car payment and still others will go to the into your savings account.

The best part of a budget is that you can allow for fun.  Learn how to budget to have fun and even how to budget if your paychecks are never the same amount.

Related: How to Figure Out How Much to Budget for Groceries

Write down your financial goals

Successful people start planning by having the end in mind.  It may mean taking a backward approach to your finances.

Think about what you want.  Do you want to get that credit card paid off or maybe take that dream vacation?  No matter your goal, figure out what it will take to get there, and that will help you set your goal.

It may mean fewer dinners out or putting in some overtime at work.  Whatever your goal, make sure it is clearly defined and you keep it front and center.  Put it on your refrigerator.  Keep a photo of it in your wallet.  Make sure you see that budget staring you back in the face every time you even think about spending money.  That will usually stop you right in your tracks.

Related:  The Secret Trick I Use to Stick to My Budget

Cash is a Must so that you never overspend

If you are someone who is always saying “I can’t stop spending money,” then you need to use cash.  I’m sure you’ve heard it time and time again. Using cash is one of the simplest tricks to help you stop spending money you don’t have.

It works because it gives you defined money.  If you have $100 to spend at the grocery store, there is no way you can even spend $101.  You don’t have it.  You are forced to spend wisely and think more about every purchase you make.

I know some of you are reading this saying “but if I have cash I just spend it so fast.”  That is because you are not tracking it and taking responsibility for your spending.

You need to use the cash envelope method.

If you have an envelope for groceries with $50 left in it, sure, you can dip into that and grab $20 to spend on lunch.  But, what happens when you need food for your family?  That means you’ve just $30 to buy food – which may not get you much.

Cash forces you to think about every purchase you make.

Related:  How You Can Become Accountable With Your Money

Stop paying for convenience

There is a quick fix for nearly everything.  You can find dinners in boxes, small pre-packaged snacks, etc.  Rather than purchase convenience items, buy the larger size snacks and then re-package yourself into smaller baggies.  You will not only get more out of a box, but you can even control how much you put into each baggie.

There are other ways we pay for convenience.  We pay for someone to iron our shirts, wash our cars and even mow our lawns.  By doing these things ourselves, we can keep much more money and easily stop overspending.

Read more:  How You are Killing Your Grocery Budget

Put away the credit cards to halt spending money

One of the simplest ways to stop spending money is to get out the scissors and cut up those credit cards!!  Or, if you aren’t ready to cut them up, put them on ice.  Literally.  Freeze your credit card in a block of ice.

If you keep spending, you have to cut off the source at its knees.  While I don’t think credit cards are a good fit for everyone, I know they work for some.

If you must use credit cards, never charge more than you have in the bank to pay it off.  That means you can’t charge the amount you believe you will get on your paycheck.  There is never a guarantee that your check will arrive.  Spend only the amount you have, not what you will receive.

Related:  How to Pay off Your Credit Card Debt

Pay your bills on time

We all have bills.  We know when they are due.  When you miss the payment due date, you get assessed a late charge.   Pay them on time, so you don’t pay more than you need to.

In addition to late fees, not paying your bills on time can have an adverse effect on your credit score. Learn how to organize your bills, so you never pay them late again.

Do not live above your means

Few of us would not love new clothes or a new car. We all would like to make more money or get the hottest new device.  The thing is, can you afford it?  Is it a want or is it a need?

If you are using credit or loans to get items that you can not afford, then you are living beyond your means and spending money you don’t have.  Scale back and make sure that you can honestly afford the house or the car and that it doesn’t ruin your budget and cost you too much.

Read more: Defining Your Wants vs. Your Needs

Don’t fall for impulse buys

Stores are sneaky about making us spend money.  They use signs, layout and even scents to lure you into wanting to buy more.  The thing is, if you purchase something you did not intend to, then you are already blowing your budget and probably overspending.

Another way that you are spending too much is when you plan dinner but then decide at the last minute to go out to dinner instead.  Why do that when you have food waiting for you at home (which you’ve already paid for)?

The final reason you may impulse buy is that of emotion.  If you feel a rush because of that new item, you may purchase out of impulse and emotion instead of need.

Read more:  Stopping Impulse Shopping

Plan your meals

One of the most significant changes we made was to menu plan.  It took me some time to put it all together, but now, I can plan our meals in no time at all.  I use the simple menu planning system that I’ve taken time to build over the years.

While this works for me, I remember when I was learning how to menu plan.  It was quite a process, and I relied upon the help of some experts in the field.   One of them I have used is Erin Chases’s $5 Meal Plan.  I loved how simple it was to create our meals each week.

Even the best menu plan won’t work if you aren’t eating what you buy.  Make sure you are not making mistakes with your grocery budget and eat what you buy.  After all, throwing food away is just money in the trash.

Related:  Money Saving Secrets Stores Won’t Tell You

Challenge yourself to spend less 

There is something fun about trying to beat yourself at your own game.  By this I mean, if you have $150 to spend on groceries for the week, try to spend only $130.  That gives you $20 more to spend on something else — or put towards your goal.

Related:  The Yearly Savings Challenge for Kids and Adults

Stay out of the stores so you don’t shop

If you can’t control your spending and continue spending money you don’t have, you have to remove the temptation.  Even something that seems harmless can result in spending money.

Track the money you are spending

Keep track of your spending by adding up the amounts on your phone.  That way, you’ll have no surprises when you get to the checkout lane. You can try Shopping Calculator for Android or Total-Plus Shopping Calculator on iTunes.

When you start to see that total creep up, you realize how much you are spending. That may help you think twice about that extra box of treats you are tempted to toss into the shopping cart.

Use the three-day rule before you spend a dime

The three-day rule is pretty simple.  If you see something you want, wait for three days before you buy it.  Once the third day is up, ask yourself if you still feel it is something you need.

If it is, look at your budget to ensure it works with this month’s spending.  Then, double check the cash to make sure you have enough to pay for it.  If both of these work, you can consider buying it.

The funny thing is that most purchases are impulse buys and the three day waiting period helps you realize you don’t need it.  And had you purchased it, you may even have buyer’s remorse at the three-day mark.

Related:  The Trick To Make Sure You Never Overspend

Don’t use coupons and skip the sales

Sales are very tempting.  They lure you in and often result in making purchases you would not do otherwise.  That is why you nee your list. Stick to it and don’t fall for the sales.

You also need to put away the coupons.  Well, you can use them, but responsibly.  If you would not purchase an item at full price, you should never buy it only because there is a coupon.  A coupon is not a golden ticket to shop.

In addition to this, avoid the clearance aisles and end caps.  These are money spending traps!  You walk by, and your eye is drawn the end cap with the big SALE sign in front of it.  If you don’t need that item, don’t grab it.  Also, don’t walk by the clearance section.  It is very easy to pick up items you don’t really need.  That makes you again spend money you had not planned on.

Instead, shop the sections you need.  If you need detergent, go to that section and grab your item and then go to the next on your list.  Don’t wander through the store as you will be more likely to do “cart tossing.”   This is when you put items in your cart without noticing what you are spending.

I’m not saying not to buy anything on sale.  Just get the things you need that are on sale this week, or that you will need in the next weeks.  You probably need spaghetti noodles, but you don’t need a new pair of shoes.

Related: The Money Traps You Will Fall For

Never shop without a list

Never shop without a grocery list. Ever. Then, force yourself to stick to it.

Some simple ideas include using a timer to limit how long you can be in the store.  If you have only 20 minutes to shop, you will be less likely to grab the items you don’t need and stick with those that are on your list.

Another is to challenge yourself to see how fast you can finish your shopping.  If you have the list and stick to it, you’ll find you spend less time shopping and more time enjoying the things you love.

The best reason to use a list is that you don’t have to worry about forgetting that “one item” you know you need.  When you force yourself to make a shopping list and stick to it, you’ll always have everything you need on hand for dinner.

Keep emotion out of shopping

One tip is never to shop hungry.  When you do, your stomach controls what you buy.  The added benefit is buying the healthy foods you need.

If I am feeling bad about myself, buying something I have been wanting may end up making its way home with me. Spending money to make myself feel better never works.

There are many emotions attached to spending.  You have to identify which one(s) apply to you and find a way to fulfill that need through another method – other than spending money.

Define Needs vs. Wants

There are items we need.  You need food, but do you need the extra box of cookies?  Yes, the sweater is really cute but is it something you need or just something you want.  Ask yourself  “is this a need or a want” with each item you buy.  You’ll soon be on your way to less overspending.

Clean and declutter

When you declutter, you find all of those items you’ve spent money on and no longer need.  It makes you realize where you are spending.  You will also recall how clean your closet now is. Do you really want to fill it back up with more stuff?

The added benefit of decluttering is that it keeps your house clean and organized!  You can find what you need more easily and don’t have so much “stuff” cluttering the house.

Save first, spend later

It is important always to pay yourself first.  Remember that the amount you have to spend is what is left over after you pay your bills and pay yourself.

You should always tell your money where to go instead of it deciding for you.  So many do that the opposite and save after they spend.  If you still save a little, you will quickly build a nice emergency fund and can have less guilt about your spending.

Learn from your mistakes

The most important thing you must do is figure out where you’ve gone wrong in the past.  Your mistakes will be different from everyone else’s.  You may shop out of emotion while someone else does out of boredom.

You also need to keep in mind that you will make mistakes.  There will be months when you fall off the wagon.  Don’t beat yourself up over it.  Use it is a chance to learn from them and do what you can to not repeat them again.

Related:  The Mistakes You Will Make When Getting Out of Debt

Gaining control of your spending is possible.  You just need to have the desire – and the tools – to make it happen.

The post How to Stop Spending Money You Don’t Have appeared first on Penny Pinchin' Mom.

There are many types of budgets you can try. A quick Google search will show you lots of options, including the cash envelope budget. If you say it doesn’t work for you, you didn’t try doing it the right way.

Whether you’re getting out of debt or not, you can probably use some help in making sure you control your spending. Contrary to what many people say, the best way to do this is to use cash. If you’re trying to get out of debt, the cash envelope system is an important step in your debt paydown plan.

Many financial experts, such as Dave Ramsey and Clark Howard, agree that using cash is an important factor in controlling your spending. And it’s a system not only for people trying to get out of debt. Cash envelope budgeting is for everyone because it really makes you think more about your spending.

If you’re just learning about budgeting, you’ll want to check out our How to Budget page. There you’ll learn everything you want to know about budgets and budgeting.

HOW TO USE THE CASH BUDGET

WHY A CASH ENVELOPE SYSTEM?

Cash is king!! I say this all of the time because I genuinely believe it. When I bring up using cash, the first rebuttal I get is “If I have cash, I spend it far too easily.” Sorry, I don’t buy it. The main reason people fail on a cash budget is because they don’t track what they spend and assign it a task.

The truth is that when you use cash, you spend more wisely. When you have only $200 for groceries and you know it must last for two weeks, it forces you to think twice before you buy that extra item. A cash budget never lets you overspend because once the money is gone – it’s gone.

CASH ENVELOPE CATEGORIES

Getting started using the envelope system for budgeting is pretty simple. To begin, look at your budget. The following are cash envelope categories you should consider using:

• Groceries
• Clothing
• Dining Out
• Medicine
• Doctor/Dentist Visits
• Haircuts/ Beauty
• Random Spending (which you spend as you want – only if you can afford it)

You’ll notice that I didn’t include gasoline on my list. The reason I didn’t is that most people won’t overspend at the pump. Most of us just fill up our tanks and go about our merry way. You also don’t drive around and burn fuel or decide to fuel up because your neighbor did. It’s part of your budget but not an item where you will overspend. Not only that, it’s usually much more convenient to pay at the pump with a card.

PRINTABLE DIY CASH ENVELOPE TEMPLATE

When it comes to using the cash envelope system, you can purchase one, such as the one sold by Dave Ramsey, or you can just use the envelopes in your desk drawer. I’ve got a cash envelope template you can download for free.

HOW MUCH CASH DO I NEED?

Once you have your categories, you have to determine how much cash you need for each envelope. You’ll figure the amount based on your pay period.

For example, if payday is every two weeks, take the total monthly grocery budgeted amount and divide it by two. You’ll then know how much money you’ll need for each of the two pay periods in that month. It’s important to have a budget that works (including using budget printables as needed).

Next, review each spending category you’ll use cash for, and figure out the amount you’ll need. Once you’ve done that, you’ll also want to figure out how many of each denomination of bill you’ll need. List the total amount, by denomination, on a piece of paper. Take that to the bank, along with a check from your bank account for the amount. You’ll make a withdrawal and then split up the cash into each envelope.

HOW TO USE THE DAVE RAMSEY ENVELOPE SYSTEM

Sometimes it’s easier to understand something if you can see it in action. Follow this simple cash budget example to see how it works.

START WITH YOUR REGULAR BUDGET

Let’s say you bring home $2,500 per month. You have completed your written budget and have items such as your mortgage, utilities, food, dining out, debts and other expenses. Many of your expenses are paid for with a check or electronic transfer. Those are not the categories to consider for your cash budget. Instead, look at the variable expenses you don’t pay for all at once – instead, you pay for them over time.

These are the items that will work best if you use cash. In this case, you’ll include groceries, clothing, dining out, random spending and doctor visits.

In this example, we will only use cash for these items.

MONTHLY BUDGET

Groceries – $500

Clothing – $100

Dining Out – $100

Random Spending – $80

Doctor – $50

DETERMINE HOW MUCH CASH YOU NEED PER PAYCHECK

As you can see, the budget above is based on your monthly income. If you’re paid every two weeks, that means your take-home pay is $1,250 twice a month. You only need enough money to cover half of each of these categories. Your spending for each will look like this for each pay period:

MONTHLY BUDGET DIVIDED FOR BIWEEKLY PAY

Groceries – $250

Clothing – $50

Dining Out – $50

Random Spending – $40

Doctor – $25

Total cash needed: $415 per pay period

Now that you see what you have budgeted to spend on each category each pay period, you need to determine how many bills of each denomination you’ll need to get from the bank.

KNOWING HOW MUCH CASH YOU NEED FOR A CASH SYSTEM

Using the same cash budget example above, here’s how you’ll do that:

Groceries – $250: three $50 bills, five $20 bills

Clothing – $50: two $20 bills, one $10 bill

Dining Out – $50: two $20 bills, one $10 bill

Random Spending – $40: two $20 bills

Doctor – $25: one $20 bill, one $5 bill

You need to get this cash from the bank. You can’t use an ATM because it will spit out only $20s and $10s and will not give you the correct number of bills. Make a note to hand to the teller that shows how to break down the cash:

Three $50 bills

Twelve $20 bills

Two $10 bills

One $5 bill

Write a check for $415 payable to “Cash,” and take it, along with your slip of paper, to your bank. The teller will cash the check and give you the bills you need.

FILL YOUR CASH ENVELOPES

When you get home with your cash, it’s time to add the money to each envelope. Find the one for each spending category listed above. Pull the cash from the bank envelope and split it into each envelope, per the list above. Add the amount of the deposit to the front of the envelope, adding to any amount that may be left from the prior pay period.

USING THE CASH ENVELOPE SYSTEM

Once you have your cash and your envelopes, it’s time to put them to work. The only – and I mean only – way this will work is if you track Every. Single. Transaction. I am not joking. Doing this can help you stay on track, and you also have to account for everything you spend.

For example, shop as usual at the grocery store. If your total is $20.17, pay with cash from your groceries envelope. Place any cash you get back into the envelope, then deduct your purchase from the balance. So if you had $100 and spent $20.17, the total cash you have left will be $79.83.

The printable cash envelope template above includes lines on the envelope, so you have a place to track your balance. If you use your own, add it to the outside of each envelope or keep a slip of paper inside.

Make sure you track every purchase. You can always see where money was spent and how much money you have left. It helps you monitor your spending at a glance. Once the cash is gone, you’re done spending money in that category.

USING THE VIRTUAL CASH ENVELOPE SYSTEM

I also get that sometimes cash is just something you can’t do. You need (or just really prefer) using your debit or credit card instead. Is there a way you can apply this method when you spend using plastic?

Of course!

Rather than getting paper money to put into your envelopes, you can use either a virtual envelope or paper tracking to monitor your spending.

You can read more and get started with different ways to use the cash envelope method even if you don’t use cash.

HOW TO USE A CASH METHOD WHEN SHOPPING ONLINE

What if you don’t always shop in stores but rather do some of your shopping online? How would that work with a cash budget? Can you even do that? Yes, you can. You just have to handle it a little differently.

The first option is to leave in your account some of the money you normally get in cash. For example, if you spend $100 every paycheck through online purchases, get $100 less in cash. You can still account for it by using cashless envelopes. That way, you still monitor your spending and don’t blow your budget.

The other option is to still get all of the cash you normally need. Then if you buy something online, head to the bank and redeposit that amount into your account. You still get the full benefit of using cash and seeing the money come out of your envelopes.

You can use a cash envelope system when you shop online – you just have to make some adjustments.

WHY THE CASH ENVELOPE SYSTEM WORKS

The reason the cash envelope system works is pretty simple: accountability.

When you have to make yourself accountable for your spending, you’re taking control. It also will help you spend less. If you only have $100 to spend on dining out over the next two weeks, you’ll think twice about ordering takeout three days in a row. When the money is gone, you are done spending!!!

This isn’t entirely about cash. It’s also about learning financial self-control. That’s the one thing everyone will gain by going through this process. It enforces a way of thinking. You’ll quickly learn to love using cash, and you’ll feel more in control of your finances.

Cash also has more emotion attached to it. You don’t think about the consequences of a purchase when you swipe a card. However, handing over that cold, hard cash sometimes hurts. You do think about each purchase a bit more.

We’ve been doing this for so long that I don’t know how to shop without my envelopes! It’s routine, and it helps us always know, in a matter of minutes, how much money we have available for the things we need.

The post The Ultimate Guide to Using a Cash Budget appeared first on Penny Pinchin' Mom.

Financial advice is great – when it is the right type of advice.  There are tips and strategies that can make you money.  However, there is also a lot of advice that will do nothing but keep you broke and in debt.  These are things you don’t want to listen to.

I remember when I was younger, my mom told me that I had to get a credit card because it would be important for any emergencies which came my way.  I followed her advice and got a credit card. And, wouldn’t you know it, the first time I used it was for an emergency. Or, what I thought was an emergency.

I woke one snowy morning and someone had hit my car — and fled. No note on my windshield.  Just a dented door with green paint. I was devastated.  I had worked so hard to afford that car.  Now, here I was having to pay money to get it back to the condition it once was.  Since I was broke, I followed my mom’s advice.  I used my credit card.

I remember watching it go through the reader.  I signed my name and I was done.   When the bill came the following month, I paid that minimum payment. I decided that credit cards were pretty slick!  They were simple to use and it was the way to get what I wanted now and I could just pay for it later.

In hindsight, my mom would have been better to teach me the importance of saving.  That way, I would have cash on hand to cover my emergencies and not rely on plastic.

Sadly, this is the way many people live their financial life. The take the advice of friends and family and follow it rather than listening to financial experts.  Here are some common financial advice myths.

BAD FINANCIAL ADVICE YOU MAY BELIEVE

1. Some debt is good to have

I hear time and time again that you have to have debt in order to have a good credit score.  That type of financial advice is pure nonsense.

There is no such thing as “good debt.” Debt is money you owe someone and it is never a good thing. It is, however, sometimes necessary in order to purchase a house or a vehicle.  While not what one would call good debt, it may be a debt you need to have in order to live.

The type of debt no one should have is credit card debt.  Ever.  There should never be any instance where you owe more on your credit card in any given month than the amount of money you have in the bank to pay it in full.

Continuing to accrue debt that you can not pay in full each month makes no sense at all.

2. You need a credit card for an emergency

My story above is all too common for many.  The opposite is true.  You can have a credit card, but should not use it only for an emergency.  However, if that is how you plan to pay for emergencies, you are setting yourself up for financial trouble.

We all know that emergencies will happen.  There is nothing we can do to prevent them.  However, the smart thing to do is to plan ahead for the unknown.  This is why a fully funded emergency account makes more sense than a credit card.

If you think about it, having to deal with the stress of the situation is bad enough.  Add to it the thought of increasing your debt in order to deal with it just makes the situation a work.  Now, you not only had to deal with the broken furnace but now, you will have to find a way to pay for it as your monthly bills just went up.

Your emergency fund will come to your rescue when it is needed.  Knowing the funds are there to help cover those expenses will instantly make you feel better when dealing with a stressful situation.

3.  Leasing a vehicle is better

This is the one that makes me scratch my head.  When you lease a vehicle, you never own it.   Instead, you are stuck in perpetual car payments. How does that make any sense at all?

The common reason many say they lease is that they don’t have to worry about having an older vehicle.  They know that they are driving a new vehicle every few years.  The truth is, if you take care of your car, your vehicle can last you for years.  I drove our minivan for more than 13 years!  And, when I was ready for an upgrade, my vehicle was 3 years old.  Nothing new here!

If you lease a vehicle for 3 years at $300 a month, you will pay nearly $11,000 to drive the vehicle.  At the end of 3 years, you give it back. You have nothing to show for it.  You have just thrown away $11,000.  Now, you have to either lease again or decide to purchase your vehicle.  You are starting over on those payments.

However, had you purchased a vehicle that would offer you the same monthly payment of $300 for 3 (or even 4) years, you would own your car.  You now have $300 a month income freed up to do with what you wish.

The smart move would be to save that $300 monthly amount so that in 8, 9 or even 10 years when you need a new car, you can pay for it in cash.  This money will also more than cover some of the repairs that may be needed as your vehicle ages.

4.  Renting is throwing your money away

If you rent, you probably this financial advice frequently.  It is common for people to feel that it makes more sense to buy a house as your money is going to build up equity in your property.  And, truthfully, for some people renting is a waste of money.

But not for all.

There are situations where you do not have the funds for your down payment.  It could also be a time in your life when you know there will be the potential for relocating to a new city or venturing down a new career path.

By renting, you also avoid the additional costs of home maintenance, insurance, and other expenses which go with owning a home.

The best way to know this one is to look carefully at your own budget and personal situation. If renting works for you, then that is the path you should follow.

5.  You should always buy a new car

Turn on any television program and you will see ads sharing low-interest rate payments to lure you into wanting that new car.  These ads make it sound extremely affordable and tempting.  But don’t fall for it.

The truth is that when you purchase a new car, it will depreciate most quickly in the first few years you own it.  In fact, most cars will lose half their value every four years.  For instance, if your car is $25,000 brand new, in just four years it will be worth $12,000.  Add another four years and now the car is worth just $6,000.

You should not be a car that is too old.  Instead, purchase a late model car with lower miles. It will cost less to operate and will more quickly pay for itself.

6.  You must go to college

Many high school students believe that they must go to college when they graduate. However, that is not necessarily the right decision for everyone.  Not all careers or jobs will require a college education.  And, if you do not have the funds to pay for it, you can certainly rack up quite a bit of student loan debt.

If you happen to select a career that requires a secondary education, then it can be worth the cost. But, make certain you have the passion needed to carry you through.  Otherwise, you may find yourself amongst the nearly 60% who drop out, you will find yourself left with a mountain of student loan debt and nothing to show for it.

Rather than attend a college, consider a trade school instead.  Or, if you know for sure you do want to go to school, spend some time trying different jobs to figure out where your passion lies.  There is no rule that says you have to start college immediately after you finish high school.  Know what you want to do and then decide where to go for your education.

Getting financial advice from family and friends, be it solicited or not, can be helpful.  However, just make sure that what they say makes sense and do your homework.  Following what they say can often lead you down a path of increased debt and unhappiness.

Please note that I am not a certified financial advisor and the information shared on this site is based on my personal experiences.   It is important you consult with a tax or financial professional for assistance for your financial situation.

The post Financial Advice Keeping You Broke & In Debt appeared first on Penny Pinchin' Mom.

This is a sponsored post on behalf of Mr. Cooper. 
All opinions are my own and were not influenced by any parties.

Consumer debt has just hit an all-time high.  It now tops more than $3.8 trillion.  Not million. Not billion.  Trillion. Being in debt can make you feel as if you are completely alone.

But, you aren’t alone.  There are thousands of people feeling exactly like you do right now.  I say this because I used to be one of them.

When I was in my 20’s, I racked up a lot of debt.  I was drowning, and I thought there was no way out for me but to declare bankruptcy.  At that time, it was all I could see in front of me.  It was all I knew, and I thought it was the life preserver I needed.  Turns out, that it saved me from drowning, but it did not teach me to swim.

But, that didn’t fix anything.  The reason was that I did not take the time to get to the root of my problem, which was how I looked at money.  So, wouldn’t you know it, several years later, my husband and I built up nearly $37,000 in debt.  And once again, I felt like I was drowning.  But this time, I did not use the life preserver.  This time, I stopped treading water and learned to swim.

My husband and I worked together and developed a plan and began the hard work of paying off our debt.  We sold things.  For a while, we did not eat meals out.  We cut back our spending.  For us, it worked.  We were able to pay off that mountain of debt.

I still remember sitting at the dining room table that February night in 2010.  We’d done it.  We’d actually done it!  $37,000 gone in a little more than two years!!  The minute I hit send to pay off the loan, I felt instant relief. It was as if a weight that had been pushing me down all of these years was instantly lifted away.  I was able to float and catch my breath.

For me, it wasn’t just the fact that I paid off the debt. I’d taken the easy road and done that before.  This time, it was because I did NOT do it in the same way. I learned a lot about myself and made changes so that I would not find myself taking this path ever again.

YOU AREN’T ALONE

More than 32 million consumers have higher-interest debt, an average of $8,600 per U.S. household to be exact!  And, a recent survey conducted by Mr. Cooper found that 68% of Americans are concerned about their debt.

If you find yourself unable to sleep because of your finances, you aren’t alone. I recall many sleepless nights worrying about how I was going to pay the bills and feed our family.  In fact, did you know that 33% of people with debt also lose sleep?  See, you really aren’t alone!

During our journey, there were many times we both agreed that we’d have done just about anything to get out of debt.  And, some of our ideas were pretty extreme!  When YouGov asked those in debt what they would do to have their credit card debt forgiven, 31% said they’d give up social media for a year!!  But, then again, there are times I’d be willing to give up social media just not to have to deal with social media.

That makes me wonder, what would you do if you could no longer have to worry about your credit card debt?  Maybe you would do one of these:

• Would you give up your favorite sweet or savory treat for a year?  32% of people surveyed said they would.
• How about getting a tattoo of their favorite preteen musician?  14% would do this if they could be debt free.
• Maybe relocate to Antarctica for two years?  If you’d do this, you are among the 8% who’d do this.

TAPPING INTO YOUR HOME’S EQUITY

There are options, and one of the simplest ones may be staring you right in the face.  While consumer debt has continued to rise to more than $3.8 trillion, so has home equity.  Home equity values continue to climb and are up by 100% since 2000! In fact, the average homeowner has an average of $90,000 in home equity.

Before you think I am talking about getting a home equity loan, let me stop you right there.  That’s not what I am referring to at all – there are other options.

This is where Mr. Cooper comes in. Mr. Cooper, the nation’s largest non-bank mortgage servicer and a leading mortgage lender, is reimagining the homeownership experience to make the home loan process more rewarding and less worrisome. . A loan expert can walk both existing and potential homeowners through their financing options, along with all the pros and cons of refinancing so customers can make the right decision for themselves, and the home loan process is more rewarding and less worrisome.

What people don’t realize is that you may be able to tap into your home’s equity and reduce those high-interest credit card payments.

Homeowners make monthly mortgage payments and slowly pay down the balance that is owed on their loans. At the same time and in many cases, the value of the home continues to increase.  The difference between what a homeowner owes and the appraised value of a home is home equity.

For example, if you owe $150,000 on your house and it appraises for $250,000, you would have $100,000 in equity.

HOW DOES THIS WORK?

The idea is pretty simple.  You are going to take out a new loan on your house.  But, rather than doing so for the amount you currently owe on your mortgage, your new loan will include the amount you owe on your home, plus cash to take out to apply to other non-mortgage debts.

When you tap into home equity, you can use the additional funds to pay down your loans and credit cards.  Imagine: making just ONE payment each month!  Using home equity through a cash-out refinance could not only lower your monthly payment, but could also eliminate the payments on high-interest credit card balances that never seem to decrease.

I’m one who loves examples, so let me show you how this works.  Let’s say your mortgage balance is $125,000 and your house appraises for $200,000, meaning you have $75,000 in equity you would take out a mortgage for $160,000, of which $125,000 is for the house and $35,000 is an equity withdrawal (lenders usually allow you to borrow up 80% of the home’s value).  You then use that $35,000 to pay off your credit card balances.  Slick, huh?!

WILL IT REALLY IMPROVE YOUR CASH FLOW?

A lot of people will find that going through a cash-out refinance with Mr. Cooper helps them reduce their monthly debt payments.  Check out some of these results (actual results may vary).

Think about what you could do with another $500 a month.  If anything, imagine what it would feel like not to stress about paying your bills and finally being able to sleep at night.

ARE THERE ASSOCIATED COSTS?

As with all loans, there are origination fees and closings costs for a cash-out refinance. However, I’ve got a unique way you can save $500! (Of course, I have a way to save – that’s the way I do things)!

Mr. Cooper is offering all Penny Pinchin’ Mom readers the opportunity to get a $500 loan discount!!  Just head to https://homeloans.mrcooper.com/pennypinchinmom/ to submit the form, and a Mr. Cooper Mortgage Professional will reach out directly to talk to you.  That is all you need to do to claim this offer!

There is no reason to keep living like this.  If your debt keeps you awake at night or you find that you’re willing to give up a kidney to ditch it (yes, 7% of people would do this to get out of debt), there could be options.  You may not be able to do it as I did, but using your home might be a perfect way to help you finally catch your breath.

Important disclosure from Mr. Cooper: A debt consolidation refinance increases your mortgage debt, reduces equity, and extends the term on shorter-term debt and secures such debt with your home. The relative benefits you receive from debt consolidation will vary depending on your individual circumstances. You should consider that a debt consolidation loan may increase the total number of monthly payments and the total amount paid over the term of the loan. To enjoy the benefits of a debt consolidation loan, you should not carry new credit card or other high interest rate debt.

Nationstar Mortgage LLC d/b/a Mr. Cooper, 8950 Cypress Waters Boulevard, Dallas, TX 75019, (888) 480-2432, NMLS Unique Identifier #2119 (www.nmlsconsumeraccess.org). ©2018 Nationstar Mortgage LLC. Mr. Cooper is a registered service mark of Nationstar Mortgage LLC.

The post What It Feels Like to Be In Debt (And How to Get Out From Beneath It) appeared first on Penny Pinchin' Mom.

You’ve made the decision that you want to get out of debt.  Good for you.  You’ve got your budget and your debt pay down plan ready to go.  You are ready to attack your plan.

Before you start I want you to do one thing.  Stop right there.  Don’t do another thing to get out of debt.  Not until you read this.

When people are trying to get out of debt, they are willing to do and try just about anything to get those bills paid down.  This results in many mistakes.  Things that can actually cost you in the long run.

Before you go on with your own debt plan, do what you can to avoid making these mistakes.

Read More:

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The biggest obstacle to someone with a crushing debt burden is a lack of knowledge of how to get their arms entirely around the problem, and know how to go about making it right.

They do not understand what options are available to them, and if they do, they are unsure as to what the right first step for them is.  While many think bankruptcy is the answer, some alternatives may work better.

I can relate to the soul-crushing feeling of debt. I declared bankruptcy in 2010.  While it wasn’t my finest moment, I was able to learn from my mistakes and now live the financial life I want.  But, it wasn’t easy.  I had issues with my credit for years, and it followed me everywhere I went.

Had I known about some of these bankruptcy alternatives, I could have saved myself a lot of headaches.  Take the time to research your options before you pick up the phone to call an attorney.

HOW TO AVOID FILING FOR BANKRUPTCY

Debt Management Programs

Debt management programs, also called debt consolidation programs or credit counseling, is a way for people to pay off their unsecured debt using a third party debt relief company. A debt management program (DMP) works like this:

• Customer enrolls in a DMP with a debt relief company providing them with information regarding the accounts to include in the program.
• The debt relief provider negotiates a monthly payment and reduced interest rate with the creditor that results in the elimination of the debt in 3-5 years.
• The customer makes a single payment to the debt relief provider, including a monthly administration fee based upon the amount of debt enrolled in the program. This fee usually ranges between $10 and $50 per month. The debt relief provider then disperses the agreed upon payment amounts to each creditor.
• In exchange for a fixed monthly payment and reduced interest rate, creditors close the accounts so that you do not accumulate additional debt. While the act of enrolling in a debt management program does not affect your credit score, the closing of accounts will affect your debt to income ratio, as well as your credit history likely causing your credit score to dip in the beginning. However, by making consistent payments to the DMP, as well as to other financial commitments, a customer’s credit score usually rebounds quickly.

DMPs generally work well for people who are current with their payments but cannot make any progress on the balances due to high interest rates. By closing the accounts to avoid future debt, and having negotiated monthly payment and lowered interest rate, DMP customers can repay their unsecured debt within 3-5 years.

Debt Settlement Programs

A Debt Settlement Program (DSP) involves legal representation and for people who have a dier financial situation, but who still would like to try to avoid bankruptcy. People who enroll in a DSP go through the following process:

• Customers stop paying the creditors enrolled in the program
• Customers make monthly payments to the debt relief provider to fund an escrow account.
• Over time, the customer’s accounts become severely delinquent. The lawyer assigned to the account will then reach out to creditors to negotiate a settlement of the account for less than the full amount.
• The agreed-upon settlement is paid from the escrow account.

Debt settlement will have an adverse effect on a customer’s credit score since payments to the creditors are halted. Customers may also begin to receive collection calls from the creditor, at which time they are to inform the caller of the legal representation now handling the account. By law, this should stop the phone calls. There may also be tax implications for the amount of debt forgiven through a DSP.

DSPs are generally used by people who cannot meet all their monthly financial commitments and need to lower their monthly payments but want to avoid bankruptcy. By having the debt relief provider negotiate a settlement of less than the amount owed, customers can make progress on getting creditors off their backs in 3-5 years and then focus on rebuilding their financial future.

Negotiate directly with your creditors

Your creditor would much rather work with you than deal with bankruptcy.  If you have assets you can liquidate and use to pay down the debt, they may be willing to accept a lower amount.  Reach out and talk to your creditors to negotiate rates or even the balances to a more manageable amount.

If your creditors are harassing you, that is illegal and you can stop it.  Read more about how to stop collectors from calling you.

Just Keep Trying

If you are getting by and your budget works, there may not be a reason to give bankruptcy much thought.  Instead, work to create a debt repayment plan you can follow.  It may mean getting a second job or selling items, but there are many ways you can come up with more money to throw at your debt

The worst thing that will happen is your credit score will drop.  But, if you aren’t trying to get new credit for any reason, I would not stress about it in the short term.  Once your debt is paid down, you can do many things to increase your score quickly.

Debt consolidation

Check with your lender to see if there is a way you can consolidate your debts into a more manageable payment.  You usually need to provide collateral, such as your vehicle.  Alternatively, you might be able to tap into the equity in your home by getting a new mortgage for the balance owed PLUS the equity (where you can use the equity to pay off your loans).

If you’ve tried everything, but can’t see any other way but bankruptcy, make sure you know what you are getting into before you file.  It affects you and your family.

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Reaching financial freedom is as simple as changing your debt mindset and making small changes in your finances.  

Two-in-three Americans say they wouldn’t be able to cover a $500 emergency expense from savings. The average household pays a dollar of every five earned just to make debt payments every month.  It may sound shocking, but it is true.

These types of stats make it easy to see how so many fall into hard financial times every year. Thousands of Americans file bankruptcy every year, setting their finances back to zero and destroying their credit.

Tracie’s story of her bankruptcy brought back memories of my own struggle with debt. It was just after the housing bubble burst and rental properties were ruining my financial life rather than making me rich as so many 3 am infomercials had promised.

Like Tracie, I took control of the situation and was able to turn it around by changing my mindset about debt and making a few small changes. These changes are surprisingly small but can mean a big transformation in your financial future. If you feel yourself yelling “Help!  I’m in debt and drowning!” there is a solution.

HOW TO STOP DROWNING IN DEBT

Debt Freedom Doesn’t Have to Mean Debt-Free

The first change is just to change your mindset about debt. The average American household owes more than $50,000 in debt, not including the mortgage. That’s nearly as much as the average annual income.

Trying to pay off that debt is a long process, and debt-free seems so far away that it’s easy to give up on your payment plan…or to not start in the first place.

But debt freedom and financial well-being does not have to mean debt-free.

Tackling even your high-interest debt or cutting the total you owe in half can be a huge accomplishment. Owing $50k in debt at an average rate of 14% means $7,000 a year in money lost to interest. Cutting your debt in half means saving $3,500 a year or nearly $300 a month in extra cash.

Also see: How much is too much credit card debt

Changing your debt mindset, understanding that debt-free isn’t the goal but just debt freedom, means you can make smaller goals. Setting a goal of paying down your debt by just $1,800 this year is much more achievable than paying it all off. When you’ve accomplished your goal or even exceeded it, you’ll be re-energized to set higher goals, and your debt payoff will only accelerate.

After changing your debt mindset, you can start to make small changes for big effects on your debt.

Saving Money the Easy Way

Paying off your debt starts with a budget. I know, nobody likes to budget, and most budgets are dropped faster than an angry porcupine, but you have to know where your money is going.

Don’t look at your budget as the beginning of long months of sacrifice, think of it as a guide.

Write out everything on which you spend money.  This means little things as well as the monthly bills. You might have to put this together over a month, jotting down every little purchase, to get an accurate view. You’d be surprised how much those small purchases cost you when you finally start tracking them.

Once you’ve got a budget, turn it upside-down!

When most people budget to save money, they start with their income and then take out expenses to see what’s left over for saving on the bottom. If they have a little left for savings, there’s no motivation to cut needless expenses.

Instead, take out the money you want to save each month first, then list your expenses. If there isn’t enough to cover your expenses, then you’ll have to start cutting spending without sacrificing saving.

Let’s face it though; there isn’t always much to cut in the budget. People are living paycheck-to-paycheck, and it’s not always clear what expenses can be dropped.

That’s why I love spending challenges.

Pick one expense from your budget, something you have control over and can cut, like eating out, soda, or that avocado toast that I didn’t even know was a thing until Facebook told me.

Then go just one month, cutting that expense completely. Setting a one-month goal will instantly put a light at the end of the tunnel and make it easier to quit. Try a couple of months with different expenses. You’ll save hundreds a month and will be surprised how little you miss some of the expenses that were once must-haves.

What a Big Difference a Little Extra Can Make

Saving where you can turn into huge savings on interest as you pay off your debt. Making regular pay means you still owe over $2,400 at the end of three years after paying back almost the full amount of the loan!

Add just $50 a month to the payment though, and you’ll have almost paid it off in three years. The total cost of the loan comes to $6,425 versus $7,618 which is how much you would end up paying on the regular payments.

That’s a savings of $1,193 just from an extra $50 a month!

How to Pay off Debt, Two Strategies to Save Money and Motivate

So you’ve got an extra $50 to pay down debt, where should you start?

Faced with half a dozen loans and tens of thousands in debt can be intimidating. How do you prioritize and get the most from your debt payoff?

There are two strategies you can use to pay down your debt; one will save you thousands in interest, while the other is hugely motivating.

The Debt Avalanche method is probably the most popular of the two and saves the most money.

1. Write down all your loans in order of interest rate with the highest rates first.
2. Make regular payments on all your debt but pick the loan at the top of the list to make extra payments each month.
3. As loans drop from your list, put any extra money to the next highest on the list.

By paying more to the highest-rate debt, you save money on total interest costs. Even though the credit card balance might only be a few thousand dollars, it could be costing you just as much interest as the mortgage, so paying it off makes financial sense.

The Debt Snowball method is my favorite, especially for people that need a little extra motivation.

1. Write down all your loans in order of the smallest amount owed first.
2. Make regular payments on all debt, but put any extra money towards paying off the loan at the top of the list.
3. As loans drop from your list, focus on the next highest debt.

You’ll see debts drop off the list faster with the snowball method compared to the avalanche method. It might cost a little extra in interest since you’re not focusing your extra money on the high-rate loans, but it’s great to watch those bills fall off your budget each month.

Of course, you can mix and match a little if you like. Try the Debt Avalanche method, but split your extra payment in two, with half going to your highest-rate loan and the other half to pay off your smallest debt.

What not to do when you are overwhelmed by debt

Just like there are things you should do when you find yourself up to your neck in debt, there are things you should also not do.  They may seem like a solution at the moment but can lead to much bigger problems in the future.

Don’t skip payments

If you are struggling to make ends meet, you may feel that the best option is to just not make your monthly payment on debts.  Don’t do this.

Instead, call and talk to the debtor.  They can sometimes offer an extension or allow you to skip one payment – without repercussions.

Don’t take out a new loan

As tempting as it may be, don’t take out a loan.  There may be a new credit card or check from a lending agency that arrives in the mail.  If you could just use those, that would help, wouldn’t it?

Wrong.

The interest rates on some of these loans and cards can be astronomical and using them to try to consolidate or pay off your debt could cost you more in interest over the long term. In addition, the short-term interest rates will go up and if you do not pay off the amount you transferred, they may go back to the first day of transfer and chart you 20% or more interest, compounded over time.

Think it will just go away on its own

As much as we all wish there were a magic wand to wave to instantly cast a life preserver to save us from the drowning debt, that won’t happen.  You can’t ignore your financial problems and hope they will go away.

Face them head on and be ready – and willing – to make sacrifices, and you’ll get that paid down before you know it.

What to Do with Your New Financial Freedom

Pretty soon, with just a few small financial changes, you could be looking at a new financial reality. You’ll be saving money on interest, paying down your debt, and will have to decide what to do with the growing cash in your bank account.

It’s OK to spend a little. You work hard for your money and deserve to enjoy it. Just don’t fall back into some of those old spending habits that led to debt and thousands in interest payments. Start making your money work for you with a simple investing plan according to your age and financial goals.

Budgeting and saving money doesn’t have to be a New Year’s resolution you make every year, but keep for only a few weeks. Making small changes in your debt mindset and budget can mean big, long-term benefits to your financial well-being.

Joseph Hogue worked as an equity analyst and an economist before realizing being rich is no substitute for being happy. He now runs five websites in the personal finance and crowdfunding niche, makes more money than he ever did at a 9-to-5 job and loves building his work from home business.

The post How to Stop Drowning In Debt appeared first on Penny Pinchin' Mom.

Sadly, I know what it is like to file for bankruptcy.  It is not fun.  There were things I wish I’d known before I signed those papers.

In 2002, I hit the lowest point in my life (financially).  I had to file for bankruptcy.  It was not fun. I am not proud I did it.  However, having survived it and come out better on the other side, I know that I had to go through that to become the person I am today.

Having done this doesn’t mean I am a terrible person.  It doesn’t say anything negative.  It just means I handled money poorly as I never learned about credit cards and finances.  As a result, I took a path that I could not get out of, and it was my last result.  Trust me; I tried a lot of things before visiting with an attorney.

The good that came from this is that I no longer live that same way.  I am very smart with my money and rather than allowing it to control me – I manage it!  That is a fantastic feeling.  No financial stress keeping me awake at night.  No fights over money with my spouse.  It truly is a beautiful thing.

Even though I’ve personally been down this path before myself, I do not wish anyone to have to go to through this.  However, sometimes, you have no other choice.  I recently contacted a bankruptcy attorney to get some information regarding what you should know before you file.

HOW DO YOU FILE FOR BANKRUPTCY

Before you file, make sure you do some research and understand everything that will happen. You will not instantly get out from under paying off your debt, so this is not a quick fix to get out any monthly payments.  It is severe and can have lasting effects.

KNOW HOW MUCH DEBT YOU HAVE

First, get a copy of your credit report and be in the know about how much debt you actually have. You want to make sure you have all of the debt listed so you can make the best possible choice regarding a bankruptcy.

WHAT DOES IT COST TO FILE?

The cost will vary from attorney to attorney, but in most cases, you will pay upwards of $1,000 for your filing.  You will also pay filing fees of $200 or more.  And, then you will still have to repay the debts that may not have been discharged by the courts.

DO I NEED A BANKRUPTCY ATTORNEY?

You need to hire an attorney who understands bankruptcy law. You can find attorneys near you by asking friends and family members for referrals.  It is not recommended to randomly select an attorney from a quick search.  Make sure you conduct your research before hiring someone to represent you.

WILL I FILE FOR CHAPTER 7 or CHAPTER 13

You also need to know which type you can qualify for be it Chapter 7 or Chapter 13.  You should consult with your attorney to determine which is the best option for you, but here are general things to know about each:

CHAPTER 7

• To qualify, you must have little to no income (if you do not, you will have to file Chapter 13)
• It will take anywhere from three to five months from beginning to end
• Your non-exempt property is sold to pay back your creditors
• Will wipe out your general unsecured debts such as credit cards and medical bills

CHAPTER 13

• To qualify, your unsecured debt can’t be more than $394,755 and secured debt of $1,184,200.
• It will take three to five years to finalize the process
• You get to keep all of your property but have to pay creditors the balance of your nonexempt assets
• Allows you to get caught on missed payments

WHAT HAPPENS WHEN YOU FILE BANKRUPTCY

Once you file, you will have to show up to court. You will have to answer the judge’s question under oath.  Your bankruptcy will be declared when you are through.

Then, you have to repay some of your debts, which will be determined by the court.  While some of your debts may be discharged, others will not.  You could end up paying much less than you currently owe or be required repay a portion of the balance.  That is up to the court to determine.

You will have a bankruptcy trustee assigned to your case, to whom you will make your monthly payments.  The payments will be a percentage of the debt you owe.  The amount will vary and may be less than you currently pay for your debts.

You will continue with your court-mandated payments for a period of up to five years.  You will need to make all payments on time or face potential issues with the court.

One question most people have is “how long will the bankruptcy be on my credit report.”  Your bankruptcy filing will appear on your credit report for up to ten years. After that time, it will automatically fall off (but I recommend you run a credit report to make sure it is removed).

Your life after bankruptcy will not end just at the payments.  You will need to report your bankruptcy filing on employment applications, medical forms, and government reports.

Lenders can deny credit or require you pay higher interest rates as a result of this negative mark.  It follows you for years to come, which is why you need to fully understand the consequences before you even consider filing.

CONSIDER BANKRUPTCY AS A LAST RESORT

Most attorneys would prefer you file bankruptcy when there are no other options available.  Research other alternatives such as negotiated repayment terms or selling your property to pay off debt.   Do not bow to harassing creditors or collectors, as you have rights.  Reach out to credit counselors for help and advice to find ways to avoid bankruptcy.

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You must identify and understand your money attitude before you can make any financial changes.  Otherwise, you are destined to make the same mistakes time and time again.

There is a saying “Attitude is everything.”  I honestly believe that.  Your attitude towards every aspect of your life plays a vital role in how you think and act.  But did you know that your attitude can also affect the way you handle money?

Your money attitude is often the reason why you spend too much, are in debt, or fear your finances.  But, that doesn’t have to mean you can’t make a change.

Changing your financial outlook begins with your money attitude.  If you don’t first get to the root of your problem, you will be destined to make the same mistakes time and time again.

WHAT IS YOUR MONEY ATTITUDE?

There are four different money attitudes that are commonly held. And it is possible that you fall under more than one. However, when you ask yourself these questions, you should lean more towards one than the other.  Read these below to figure out which one you relate to.

You can use a checklist to help you better identify your attitude when it comes to your finances. They will help you make the changes necessary to take control of your money.

ADORING

If you adore money, it means you love to spend it. In many cases, you buy things (often on credit) just because you enjoy shopping. You don’t have to worry about the fact that you must pay for it later. You look at the credit card bill and focus only on the minimum payment.

Simply put, you love to spend money. That’s it.

Also See: How much is too much credit card debt

ENTITLED

This attitude can be best described as “keeping up with the Joneses.” However, did you know that, in all likelihood, the Joneses are up to their eyeballs in debt? Why would you want to keep up with someone who lives their life that way?

The truth is, the Joneses are showing you what you want to see. For all you know, they fight over money every night. Their kids may resent their parents for pushing them too hard. You can’t judge a book by its cover, so don’t hold yourself to an idea about which you know very little.

AVOIDANCE

If you feel you don’t deserve money, then this money attitude is yours.  It isn’t even just a feeling of not deserving money.  You may also feel anxious or stressed at the mere thought of money.  You don’t handle it well.

Avoidance is one of the most difficult attitudes to change. That doesn’t mean it is impossible. It means that you may have to work a bit harder to make it happen.

CAUTIOUS

You might be careful with your money. Some may call you frugal. Others may call you a miser. Whatever the name, you need to learn to let go once in a while.

This cautious person refuses to spend money.  They are afraid to let it go and fear that it will be gone, never to return. When you are overly cautious with money, you risk opportunities.

Also See: The Five Money Traps People Often Fall For

CHANGE YOUR MONEY ATTITUDE

Now that you know which attitude you have, now is the time to make changes. It is something only you can do.  No one can do it for you.

IF YOU ARE ADORING

The first step in overcoming your love of money is to cut off its head. That means drastic changes. You should cut up your credit cards. If they prompt you to spend without limit, then this is the first change you need to make.

If you like to spend your free time in the store, you’ll need to find new hobbies. Find something to do with the time you would usually spend walking the aisles hunting for the treasures you believe you need.

The final thing to do is to make a list of everything you love in this life. Don’t leave anything off of your list. Got it? Good. Now, go through the list and cross off everything that does not love you in return. You’ll notice that what remains are the people in your life (and maybe a pet). Those other things? They’re just things. They do not matter.

IF YOU ARE ENTITLED

To start, you have to determine why you feel the need to keep up with them. There could be a reason why you feel this way.

You may hate your job and use these things to compensate.  Low self-worth is another reason you buy items as you want to impress your friends.  It could even be that you had nothing growing up and feel you are due.  You owe it to that poor child.

If you use money to keep up with another individual, take a look at their life and determine what part of it intrigues you. He may have an amazing job that you would love to have, so maybe you should find one that makes you equally happy.

You are only entitled to be happy and need to look at your life in that way.  Things won’t make you happy.

Also See: How To Create a Weekly Budget That Fits Your Needs

IF YOU AVOID MONEY

If you don’t feel you deserve money, you need to ask yourself one question: Why not? It could be due to things you’ve done in the past.

Whatever the reason, you need to know that everyone deserves to make money. You need it to survive. You don’t need more than you can handle, but you do need enough to support yourself and your family.

The truth is, avoiding your finances doesn’t make money issues go away. In fact, it makes them worse. For example, if you found a lump on your neck, would you avoid it and hope it went away? No. You’d go to the doctor to figure out what it was and then do whatever is needed to remove or treat it.

Also See: How to Spend Less Money Without Feeling Deprived

IF YOU ARE CAUTIOUS

When you refuse to spend money, you risk missing out on opportunities. What about that once-in-a-lifetime trip? You could miss the chance to go to dinner to meet the person of your dreams or make a key career connection. You don’t want to live your life with regrets.

I’m not saying to go crazy. I’m telling you that you need to give yourself permission to spend money.

When you set up your budget, just add an item that gives you permission to spend.  It will be OK. I promise.

Also See: How to Overcome a Money Saving Obsession

IS YOUR MONEY ATTITUDE THAT IMPORTANT?

I have heard many people tell me that this really doesn’t matter as it doesn’t have that much bearing on your finances.  The truth is that it can control the way you look at money – even if you aren’t aware of it.

In 2002, when I declared bankruptcy, I never took the time to understand what led me down that path. Let me rephrase that. I never took the time to understand why I spent so much money and racked up that much debt.   I walked out of the courtroom that day, thinking I’d never make any mistakes with money again.  Boy, did I get that wrong!!

Around 18 months after that happened, I married the love of my life.  We didn’t go crazy spending money, but we did accumulate debt.  Here I was, a couple of years removed from the bankruptcy, and debt was building back up again.  Are you kidding me?!?!?

When my husband and I decided that we wanted to work ourselves out of debt, I felt the same way I had years earlier. I came to realize that I simply put a Band-Aid on an open wound when I declared bankruptcy. I never took the time to understand why I did this to myself.

It took a lot of soul-searching and understanding, but I figured it out. I had a mix of entitled and adoring attitudes. I never had money growing up.  When I became an adult, I thought I owed my younger self the opportunity to experience these things. This, in turn, led me to adore money.  I loved spending, and I loved getting things.

This time around, I did not have debt due to excessive purchases.  However, we had still overspent and were struggling to make ends meet.  When we both committed to making the change, we talked about money and the way it made us feel.

Together, I helped him with his money avoidance, and he helped me with my entitled attitudes.  It’s been more than seven years now that we’ve been debt-free.  It has a lot to do with understanding our money attitudes.

CAN YOU REALLY CHANGE YOUR MONEY ATTITUDE?

It will take some time to change the way you look at money and your money attitude. I promise that it won’t happen in one day. It may not even change next week. You may find it’s still the same three months from now.

The point is that you can now recognize your attitude and work with it. You’ll no longer fight your feelings about money. Instead, understanding the way you look at money – and the problems it creates – is a good thing.

Change cannot begin until you know what you need to change.No matter your attitude toward money, there are things that everyone needs to do:

1. Determine your financial goals. Decide what’s important to you — and only you. Not the Joneses, not your childhood self. Once you know where you want to go, you can create a plan to turn your dreams and goals into reality.
2. Figure out why you’re being held back. You have to understand why you feel the way you do about money. That allows you to move on to the final step.
3. Make the changes needed to allow you to move forward. If you don’t change the way you look at money, you’ll never succeed in your financial reboot. You might have the right budget and financial plan, but if you don’t change how you deal with money on a fundamental level, you’ll continue to have financial failures over and over again.

Now that you know your money attitude and are ready to change it, you’re ready to move on to the fun part: the action plan for your budget, your debt, and beyond!

If you want to really take control of your finances, check out the Financial Reboot ebook.  It is a guide to help you not only identify your money attitude but also create a budget, control your spending, and change your financial future.

The post Unhealthy Money Attitudes (And How to Change Yours) appeared first on Penny Pinchin' Mom.

Americans love their stuff.

Let’s face it, most of us buy and buy. You continue to just make purchases without thinking much about the financial impact you are making.  Honestly, you often buy things you don’t need.  That is what I did and why I ended up declaring personal bankruptcy in 2003.

I was a spender. In my 20s, I started getting credit card offers sent my way and used them as an excuse to buy, buy, buy.  That got me into trouble. Deep financial trouble.

Not only had I accumulated thousands of dollars of debt, I had all of this stuff.  The stuff did not make me happy.  It had the opposite affect.  It depressed me.

For me, I had to make a change.  The first was for me to take ownership of my own situation. This was no one else’s fault but my own. Nt only did I have to reduce my spending (of course), but I had to first get to the root of the problem.  I had to figure out why I was buying things I did not really need.

This is a common issue for many people. You may be one of them.

Before you can make a change, you have to understand why you do.  Recognizing your own issues is the first step before you can make any changes.  Own it  – and then do what you can to make a change.

In thinking back about my own reasons for spending, I learned a lot about myself.  These are the honest reasons why you buy things you don’t need.

1. You believe it will bring you security.

If you think that owning any of your possessions, such as your clothes or home) make you secure, then owning more will make you more secure.  Right?

Wrong.

The security we actually get from owning possessions is actually less than we believe. Everything you own can be lost in an instant.

How to stop:  Give this some more thought.  What item do you own that truly gives you more security?  Chances are that you can’t come up with one.

2. You want to impress people.

When you see the person with the brand new BMW and Apple watch, you might be impressed.  You think that they have a lot of money.  You tell yourself that you want to impress people in that same way.  But, what does it matter what someone thinks about you?  Will that truly make your life better?

The thing is, that person with the new car and Apple watch may have hundreds of thousands of debt.  They could be miserable and unhappy and use things to fill a void (see #6 below).

How to stop:  Your need to impress others is internal. Only you can figure out why you feel that you have to impress others by flaunting things.  Once you realize that it doesn’t matter what others think of you (especially strangers you will never see again), then you can stop the spending and quit

3. You are jealous of others who have more than you.

This one is a piggyback off of #2 above.  It is a natural thing to compare yourself to others and want what they have.  When your neighbor has the brand new car, you want one too.

The sad truth is that our society encourages comparing yourself to others.  This results in you buying things you don’t need, which in turn results in overspending and buying those things you don’t need.

There are four needs we all must meet:

1. Food
2. Clothing
3. Shelter
4. Utilities
5. Transportation

That is all we need to survive.  The rest is just “stuff.”

How to stop:  Make sure you have a good budget in place to ensure you needs are met. Any additional money can be used to buy the other things you want.

4. You are selfish (a tough one to admit).

As humans, we are wired to be selfish and greedy.  However, that doesn’t give us permission to use this an excuse to buy things.  He who dies with most toys doesn’t win, he just proves he was more selfish and greedy than the rest.

How to stop: This is one you have to figure out on your own, my friend.

5. You are swayed by advertising.

Think about the last commercial you saw that sticks out in your mind. Was the message about why this product will make your life better?

Now, think of the last 5 commercials you saw before that one, or even the one that is on the television right now?  What is the message they are trying to send?  Is it not also about why you need to buy their product?

How to stop:  You have to stop allowing the advertisers to tell you what you need in order to be happy and live a better life.  If you are easily swayed, then find a way to reduce what you see.  This may mean never watching live tv and forwarding through commercials or using streaming services instead of cable, so you can avoid them completely.

6. You shop to fill a void in your life.

When life is not going well or we experience depression, it is only natural to try to do what we can to make ourselves feel better.

If you shop when you are hungry, you will buy more food than you need (and usually, not the healthy options). When you get home, you will still be hungry.  Then, if you eat all of the stuff you bought, you will feel miserable. In the end, it did not fix the problem.

If you are missing happiness or something else in your life, things will not make it better. Sure, you may feel happiness for a moment or two, but it will not last.  You will still find that you are still unhappy. But now, you are unhappy with things you don’t need and more debt than you want.

How to stop:  Figure out why you are unhappy and strive to make changes in that area of your life – not replace it with things.

7. You shop on a whim.

Before you make any purchase, you need to think about what you already have at home.  For instance, if you already have 10 pair of jeans in your closet, do you really need one more?

How to stop:  When it comes to buying things you may not need, force yourself to follow the 30 day rule. Make a list of the items you think you want to buy. If, at the end of 30 days, you still feel a need for them (and can pay for them without racking up debt), then you can make your purchase.

You may find that at the end of that month, you really don’t want nor even need that item any more.

8. It’s a habit.

This is a pretty common reason as to why you buy things you don’t need.  You’ve been doing it for so long that it is just what you do.

How to stop:  I know that this is a difficult one to overcome, but it is possible.  You may need to try to change your routine by allowing less time at the store each week. It may mean that you can only buy items you add to a shopping list.

9. You think new is always better.

We live in a throw away society.  Rather than fix what we have, it is acceptable to just replace it with something new.  Even manufacturer’s know this.  They often make items to have a short lifespan as they know you will toss it aside and buy their new one in just a few years.

Instead of buying new, why not try to repair what you have?  Instead of a new car, spend a little and get yours detailed so it looks newer.  Don’t run out to dinner if there are leftovers in the refrigerator or a meal in your freezer.

10. You buy because it is on sale and/or you have a coupon.

A sale or a coupon are not a free pass to shop.  Not even close.  When you buy things you did not really need simply because it was on sale and/or you had a coupon, then you are buying things you may not need.

That’s not to say it is not wise to stock up on something that is on sale which you may need later (i.e. toilet paper).  That just makes sense.  However, if you see that handbag you want is now 50% off, that is not a reason to buy it.

How to stop:  Remember, a sale is never a good excuse to buy things you really don’t need.

What other reasons do you find you spend money when you don’t need to?

The post Ten Honest Truths About Why You Buy Things You Don’t Need appeared first on Penny Pinchin' Mom.

How do you get out of debt when you are broke? After all, if you had the money,  you would not be in debt in the first place. Right?

I hear this from people, just like you.  It is often not how much money you make, but the debt payoff plan you are using that is not working.  It is possible to get out of debt with no money; you just need to learn how.

There are plenty of inspiring stories of people sharing how they got out of debt despite not making much money. In fact, you may feel you relate.  But yet, you don’t think you can do it. For whatever reason, you think you can’t get out of debt as they did.  It is impossible.

Or is it?

My husband and I were living on one income when we decided it was time to get out of debt.  It took us nearly 2 1/2 years but were able to pay off more than $37,000 in debt.  There are countless other stories of our readers who have paid off similar amounts in even less time.

I am here to tell you that you CAN (and should) get out of debt – no matter how little money you may make!!

HOW CAN YOU GET OUT OF DEBT WITH NO MONEY?

I am going to share the steps anyone can follow to learn how to get out of debt – no matter your income level.  If you struggle to make ends meet, you already know how to make the most of a dollar, and I’ll give you additional tips so that you can pay down that debt.

I have asked this on Facebook all of the time, and some of the comments include:

“There is no way I can do this. Not with my medical bills.”

“Sure, that only works or some people – not me.”

Many of you may be thinking similar things, and I completely understand that way of thinking. I was there myself and know that it seems like an unattainable goal.  That is why you are reading this right now – to find out how to make this dream a reality.

Also See: Should you pay off debt or save?

Debt is NOT a Good Thing.

If you are in debt, it could be because of your own decisions or even those you can’t control (such as health, job loss, etc.).  No matter how it happened, you need to get rid of it. Period.

The reason you need to eliminate your debt is that it genuinely is holding you back. How can you move forward financially with this obstacle standing in your way?  If you found that you needed to buy a new car, you would find a way, correct?  For most, that would probably mean an additional monthly payment – but you would do it because you needed to.  You need to look at debt the same way:

“Getting out of debt is not a desire – it is a need.”

Before I share my story, you need to understand what you’re really up against when you have debt. It’s not just about having debt – it’s about how interest works against you every single month. On a $5,000 credit card balance with 20% APR, you’re paying about $83 in interest every month before you even touch your actual debt.

Think about it:

• If your minimum payment is $100, but $83 goes to interest, only $17 pays down your balance.
• This means your hard work making payments barely moves the needle.
• This is exactly why minimum payments keep you trapped.

Want to see this for yourself? Look at your latest credit card statement and find the interest charge. Shocking, isn’t it?

Also See: How To Negotiate Your Credit Card Interest Rates

MY STORY

I remember in 2009 when my husband and I thought there was no way we could get ever get out from under our debt.  It was an impossible dream. At that time, I was not working at that time, and so we had one income and two young children to feed.  I initially thought that there was no way at all that we could do this.  It was just not possible.

We started by looking at our finances (oh – they were awful).  Our goal was to live a great life.  We could have kept on and kept just getting by, but that was not how we wanted to live. Just “getting by” was no longer an option.

Knowing our kids would be watching us, we knew the importance of being a good role model for them.  We wanted them to learn how to handle money by following our example.

We both agreed that not having debt was pivotal in having a positive financial future. We wanted this not only for ourselves but also for our children as well. It was also essential for our marriage.  We needed to remove anything that could potentially cause stress – money, and finances being a big one.  Our relationship was good, but we knew we could even make it better.

To begin our journey, we read Dave Ramsey’s Total Money Makeover. We followed much of his advice but figured out some things that worked for us as well. Being debt free is a fantastic feeling that no one can describe.  You have to live it.

THE FIRST STEP TO GET OUT OF DEBT

The very first step to getting out of debt is to decide you want to do it.  That was the change both my husband, and I made.  Once we were ready and committed to getting out of debt, we began our journey.

You might be saying that you can’t do that though.  I’m here to say that you can – when you really, truly want to make it happen.

Getting out of debt doesn’t require you to be rich. Anyone can do it.  Even if you have a low income or don’t have much money. Like I said above, knowing that you want to make the changes and pay off your debt is only one small part.  The more significant issue is how in the world you actually can do this.

1. Face YOUR Reality

According to the U.S. Census Bureau, the average American family made around $80,610 in 2023. While that is the average, it is also true that many Americans make much less than this.

With a lower income, it is even more critical that you have no debt at all. After all, you are already stretching every dollar to cover your bills. You don’t need additional payments, causing more financial stress.

Unless you win the lottery, a wealthy relative leaves you a small fortune, or you find a better job, you know your income won’t change.  That is the truth. You can’t change that.

However, what you can and must do is take the steps you can to work yourself out from under the mountain of debt you may be facing. You need to first create a budget, determine how much debt you have and then the steps to pay it off, no matter how much money you make.

2. Fully Commit

If you are not 100% ready to make changes, then you are destined for failure. It may be blunt, but it is true. If you can’t “go all in” and fully commit to making whatever difficult changes are necessary (trust me, it will be challenging), then you need to stop reading right now.

If you are ready to make this lifestyle change, then read on. You’ve already made huge strides to make changes in your life.

3. Create (and use) a Budget and Debt Snowball Form

Knowing where your money goes is paramount to getting out of debt, no matter how much you make. Without your budget, you can’t even consider getting out of debt.

If you have never created a budget, it can be overwhelming.  But, it will also be eye-opening.  In addition to your budget, you should create a debt snowball, start using the envelope system and take better control of your money.  By doing this, you will get a better picture of your debts and how you can tackle them.

Look at paying off debt like a football team.  Each part of your finances is involved in the game:

Home Team – This is you and your family
Visiting Team – These are your debts and expenses
Your End Zone – This is where you will be debt free
PlayBook – Budget and debt snowball forms
Football – Your money
Refs and Penalties – Unexpected instances that set you back in reaching your goals

You would never expect a team to run onto the field and play the game without having the proper plays in mind. The same is true for you;  If every one of the members of your family has a different idea as to how to get your money down the field to pay off your debts, you will never make it there.

Instead, you design smart plays and work together to get there.  You work to get your money past all of the expenses you need to dodge.  There may be setbacks, and you may have to move back before you can get forward.  However, with hard work, you will get there.  You will get onto the scoreboard – and end up claiming victory!

Making Your Budget Work for Debt Payoff

You have your budget started, but let’s make it really work for your debt payoff journey. Here’s what you need to know:

1. Understanding Your Money Flow
   • Track every dollar for one week (just like we did and found $200 in convenience store spending)
   • Write down bill due dates and paycheck dates
   • Find the gaps where money seems to disappear
2. Setting Up a Realistic Plan
   • Break down expenses into needs vs. wants
   • Create a “minimum survival budget”
   • Build in small rewards to stay motivated
3. When Living Paycheck to Paycheck
   • How to handle irregular income
   • Which bills to pay first
   • Emergency bill priorities

4. Find extra money

Before you jump in to try to pay off your debts, you need to have savings.  The reason is that if an emergency comes up, you need to pay for it – in cash.  You do not want to run to your credit card to cover the expense.  It is best to have at least $1,000 in the bank before you get started.

So, before you jump in to pay off those debts you listed above, make sure you’ve got money in the bank to cover your unforeseen expenses by creating an emergency fund.

Once you have that done, then you are going to have to find a way to squeeze everything you can out of every cent.  For some, it may mean no longer dining out.  For others, it could be shutting off cable television.  Where there is a will, there will always be a way to make this happen.  You just have to do what you can!

I share this true story in our budget post, but I’m putting it here again for you!  My husband and I gave up dining out. No joke. We ate dinner out very infrequently.

While I look back and think it might have been once every couple of weeks, I asked my husband recently, and he said that we were lucky to eat out once a month! It was painful, but now that we’ve cut down out all of our debts, we have income freed up so we can have dinner out more frequently (if we so desire).

For even more inspiration and ideas, you may have to find some radical ways you can get cash to help you get out of debt. Do whatever it takes (legally and within reason, of course), to help you get out of debt.

Read More:  60 Creative Ways to Save or Make Money

Understanding Your Debt Relief Options

When you’re struggling with debt, you’ve got more options than you might think.

First, try calling your credit card companies to negotiate lower interest rates – this can save you hundreds in interest charges alone. If that doesn’t work, look into consolidating your debts into a single personal loan with a lower interest rate. This can make your payments more manageable and help you pay less in interest over time. I’ve heard from many readers who started with a simple phone call to their credit card company and ended up saving thousands in interest charges.

Credit counseling services can also help – they’ll work with you to create a debt management plan and might even negotiate with creditors on your behalf. Just be careful with debt settlement companies that promise to cut your debt in half – many charge high fees and could damage your credit score.

5. Find ways to get more money (i.e., side hustle and selling items)

To be honest, if you are struggling to make ends meet on a low income, you won’t be able to just cut enough out of your budget to pay off your debt.  Like my mom used to say – “You can’t get blood out of a turnip,” – which means if it isn’t, there is nothing you can do about it.

That is the truth, and I’m not trying to lie to you. I am realistic and know that if you are making barely enough to cover your expenses, you won’t have any extra money for your debt.  I get that.

You can’t save enough money on your budget to eliminate your debt.  Well, I guess you could, but that is going to take a very, very, VERY long time.  So, what do you do when you’ve saved all you can and still can’t pay off your debts?  Well, you just have to get creative.

For some, this may mean finding items you no longer need, which you can sell to raise money.  When we did this step, we had the same issue.  We could not cut anything more from our budget.

For us, this meant selling items we no longer needed. We did a large cleanout and got rid of furniture and other things we were holding onto, just in case we needed them. By doing this, we were able to come up with several thousand dollars — 100% of which went immediately towards our debt.

If that isn’t an option, you might want to consider getting a second job or side business to bring in income to indeed help you get out of debt.  We also did this. I started my website.  Now, let me be Frank in saying that this is not a great way to make money.  Most blogs make little to nothing in the first couple of years.  I was lucky, and we did pretty well. I was able to bring a bit more each year, all of which helped us pay off our debts.

It may not be a blog, but perhaps babysitting, cleaning houses, raking leaves, shoveling snow — there are all sorts of ways that you can make extra money.

Read More:  Unique Ways to Make Money From Home

It is not the income that is holding most people back; it is the understanding and knowing of where to start.  You might have to scale back on various spending aspects of your life, but when you get to scream from the rooftops — WE’RE DEBT FREE!!!! — it will be worth it all.  I promise you!!!

Your Road To Debt Freedom Starts Now!

I still remember how it felt watching our debt drop from $37,000 to zero. Each payment got us closer, and you can do this too. Let me break down exactly what you need to do next.

THIS WEEK:

There’s no waiting around – you’re going to take action right now. Grab all your bills, statements, and a cup of coffee. You need to:

• Write down every single debt you have – no hiding from the numbers
• List your interest rates (this is going to help you save the most money)
• Start tracking what you spend – yes, even that morning coffee run

THIS MONTH:

Now that you can see your full financial picture, it’s time to:

• Create your bare-bones budget (focus on the must-haves first)
• Pick your smallest debt and throw any extra money at it
• Call one credit card company and ask for a lower rate
• Find one bill you can lower (like that cable bill you’ve been meaning to tackle)

STAYING ON TRACK:

Here’s what has worked for my family and thousands of readers:

• Check your progress every Sunday night (this keeps you focused)
• Write down every win, no matter how small
• Have a backup plan for unexpected expenses (remember that $1,000 emergency fund we talked about?)
• Keep your goal front and center – put it on your fridge, your phone, wherever you’ll see it

When you feel stuck (and you will – we all do), remember why you started. For us, it was about creating a better future for our kids and stopping money fights in our marriage. What’s your reason?

Maybe you’ve tried it before, and it didn’t work. Maybe you’re thinking this sounds impossible on your income. I get it. But here’s what I know: if we could pay off $37,000 on one income with two kids, you can do this too. It won’t be perfect, and that’s okay. You just need to start.

The hardest part is starting. But you’ve already taken that step by reading this far. Now, take one more step. Pull out those statements. Make that first call. Write down that first budget.

The post How to Get Out Of Debt Fast When You Don’t Have Much Money appeared first on Penny Pinchin' Mom.

This is the third in a series of articles by CommunityAmerica Credit Union. The series will tackle personal debt by planting the seeds of savings and making smart downsizing choices. For some, this may be a way to get started on a positive foot. For others, it’s a chance to start over after years of overspending. Regardless of your reason, we’ll help you navigate how to downsize realistically. 

A home isn’t your only asset. There are cars, boats, property and all sorts of other valuables that contribute to your collective household wealth. In the process of prioritizing your finances and reducing debt, you don’t have to rid your life of all pleasures.

However, you may need to take a closer look at how your assets could get you ahead. We’ll share some thought-starters on how to look at which assets are the most important. We’ll also provide tips on how to approach the others with a critical eye.

What are the Assets in Your Home?

Technically speaking, an asset is something you may take insurance out on or need to include in a financial application. However, there may be high-value items collecting dust that, if put to better use, could provide a leg up. For example, unused jewelry, furniture, appliances, musical equipment, exercise equipment and collections. You may have a strong emotional tie to these items. A good rule of thumb is, if you haven’t used them in six months, it’s time to say goodbye. This could contribute anywhere from $1,000-$10,000 towards your debt repayment.

Robbing Peter to Pay Paul

It’s tempting to take out a home equity loan or refinance your debt to wipe out credit cards. However, this isn’t a “one size fits all” solution. Your spending habits must change to truly make a difference. If discipline isn’t applied, you may find yourself paying down a loan and more credit card debt later.

It’s also wise to refrain from draining a 401k account, if at all possible. You not only have to pay penalties in many cases, but also lose out on the compound interest you’ve accrued.

Is Your Car and Home Serving a Need or Want?

It’s hard to make an argument for selling off and living without a car these days. The bus system is always a viable alternative, but can be limiting when you have a family to haul around. Fortunately, this doesn’t have to be a black or white decision. Instead, truly evaluate what you need out of the vehicle. Are you driving around a $40,000 gas-guzzling SUV, but don’t have any kids or a need for travel space? Did you overspend just to have a particular label on your car hood? Luckily, luxury options including leather seats and automatic features come in even standard models now. You don’t have to sacrifice those things. But, you may need to drive an older car with more miles to attain a reasonable monthly payment.

The same can be said for transitioning from a rental to a small home. You may be glad to kiss the upgrades and amenities of a high-end apartment goodbye with a lower payment. Investment in small home, especially with today’s still-low rates, may allow you the chance to build equity faster.

Maximize What You’ve Got

It’s not all about selling. It’s good practice to put your existing investments under the microscope as well. If you have a 401k or other investment account, take time each year to review your allocations. Meet with a qualified advisor who will help ensure your money lands in the right places.

 Juggling assets can be tricky business, especially if you are struggling with mounting debt. When in doubt, consult with a trusted financial institution. Professional teams can help you create a long-term plan that ends with no debt and a healthy savings account.

Up next: Are you overspending every month like clockwork on eating out? We’ll share some turnkey tips for dialing back on food expenses each month.   

The blog and its opinions are expressly that of its author and does not convey the opinions or strategies of the Credit Union and should not be considered financial advice.

The post Are Your Assets Handcuffing You? appeared first on Penny Pinchin' Mom.

The reason most people are in debt is due to credit cards. These little pieces of plastic tempt you with high limits and low payments.  They are simple to use and often a hard habit to break.  You have to teach yourself how to stop using credit cards and end the cycle of more debt.

According to the Federal Reserve, Americans have accumulated $992 billion in credit card debt (as of November 2016).  While many people pay them off every month, there are thousands of others who do not.

They just pay the minimum and then continue to use the cards, resulting in increasing debt. If you are serious about wanting to get out of debt, you have to take steps to stop using your credit cards and racking up more debt.

Read More:

• Why Your Credit Score Matters and How to Increase It
• How to Pay off Credit Card Debt
• The Five Mistakes People Make When Getting Out of Debt
• How much is too much credit card debt

HOW TO STOP USING CREDIT CARDS

UNDERSTAND WHY YOU SHOP

It is so easy for someone on the outside looking in to tell you to stop spending. However, if it were that simple, you would have quit long ago, right? Before you can stop spending, you have to know why you are doing it.

Your reason could be to replace something missing in your life. It might be the high you get from spending. Your logic is not wrong. It is your own.

Once you understand why you shop, you can then start to work on that, and in turn, your desire to buy as much can slowly fade as well.  Knowing the reason why is one of the first things you must do to finally break the cycle of credit card debt.

CUT UP THE CARDS

I know that this is pretty extreme, but the truth is that it works.  If you do not have cards to use, you can’t rack up additional debt.

If you are nervous about getting rid of them altogether, put them on ice.  Literally. Put your credit card in a bowl of water and freeze it.  When you feel you need your card, it will be more challenging to get to, and the urge to use it may pass more quickly.

USE ONLY CASH

One thing that goes hand-in-hand with cutting up the credit cards is sticking with cash.  That doesn’t mean a debit card.  It is using paper money.

When you use cash, you have to think twice about what everything costs.  When the money is gone, you can’t spend any more.

When you use a debit card, you can still spend more than you intend.  That is never the case with cash.

If you have $100 to spend with cash, you can not make a purchase that is $105.  But, with a debit card, you still can.

It is far too easy to swipe plastic.

Read more:  Setting up and using a cash budget

SET UP REWARDS

A simple trick to sticking to not using your cards is to set up milestone rewards.  For instance, if you can go one week without using your card, allow yourself an extra coffee the following week.

As you reach more and more milestones, such as paying off a card, going six months without using plastic, etc., set up small rewards for yourself.  Just make sure that you never cover the cost of your reward by using your credit card!!

CREATE A VISION BOARD

If you want to stop using credit cards and pay off your debt, it is helpful to have a goal in mind.  It may be to afford the new car you want or buy a home. It might even be to live without feeling so much stress.

Whatever your reason, create a vision board.  When you have a clear vision of what will happen when you reach your goal, the more likely you are to stay on track.

GET AN ACCOUNTABILITY PARTNER

The best way to stop is to have someone to help keep you on track.  An accountability partner can do just that.

If you are in a relationship, you will be accountable to your partner (of course).  However, if you both have a difficult time not using credit, you might want to look beyond yourselves.  Find another couple who is in the same situation as you are and become accountable to one another.

However, if you are single, then it may be a bit more challenging to find someone.  Reach out to friends and family to find someone with whom you can connect and help one another.

TRACK EVERY PURCHASE

When you have a cash budget, you get into the habit of doing this.  However, if you are not ready to make that leap, start tracking every purchase you make.

Sometimes, seeing where you spend your money can be enough to make you want to throw the credit cards away for good.

Read more:  How to track your spending

MAKE SURE YOU BUDGET WORKS

You absolutely must have a budget.  There is no way to get around it.  But, more than just a budget, it needs to be a budget that works.  Sit down and go back over your budget to see where you may be spending too much and see if you can find ways to make improvements.

Also look carefully at how much money you spend on credit card debt each month.  Imagine what you could do with that money if you did not have to send it away to someone else.

Read more:  How to create a budget that works

Put some simple strategies to work, and you’ll stop using credit cards and can get in control of your money.  Finally.

The post How to Stop Using Credit Cards appeared first on Penny Pinchin' Mom.

I was recently a guest on the Masters of Money podcast.  One of the statements Phil made was “Wait a minute.  How does one go from declaring bankruptcy to paying $22,000 cash for a car?”

I had never really looked at my journey in that way.  But, when I thought about it, I realized –  “Dang!  That really is pretty awesome.”  And, what is even more interesting is how my bankruptcy was the catalyst for bringing me to the place I am today.

WHERE IT ALL BEGAN

When I was in my 20s, I was in a relationship. To be totally honest, it was destined to fail.  We were just really too different and so it was never going to work out.  However, being young, naive and in love, I was doing all I could to make it work.

For me, that meant buying things to make him happy.  But, truth be told, I was really spending money to make myself happy.  I loved money because it made me feel good.  I adored all it offered to me.

Sadly (and like so many others), it lead me down the path of financial ruin.  Well, not the money itself.  My attitude did.

I had such an adoration of money, and what I thought it was doing for me, that I misused it. I allowed it to take control of my life to try to fill some of the emptiness I was experiencing.

In December 2001, that relationship came to an end.  When it happened, I was devastated. It was a mix of sadness because it was over but honestly, more fear of me being able to support myself alone financially.

I had built up a lot of debt with him. While it was joint debt, we were not married. We both knew that we could not make ends meet alone and that we also needed to find a way to put this all behind us.  So, bankruptcy it was.

That following August, we met in Wichita, Kansas before the bankruptcy judge and it became official. I was bankrupt.

REBOUNDING FROM BANKRUPTCY

Fortunately for me, a few months after that relationship ended, I had moved to a new city and met the man I would eventually marry.  In fact, he proposed to me just a week after I declared bankruptcy.  Talk about a keeper!  

When I met my husband, I learned a lot about myself and what real love was like. I began to understand that it wasn’t in the things I gave him or he to me, but in the moments we shared. For the first time in my life, I experienced true love and joy.

He was the change I needed.

We married in June 2003 and knew that we wanted to start our family as soon as possible.  One thing we both agreed upon was that we wanted for me to quit my job and stay home with our children.  It was important for both of us that one of us was there to raise them.  We knew it would be a financial challenge, but one we felt we could overcome together.

In September 2004, our first daughter was born.  That was the same day I officially quit my job.

HERE COMES THE DEBT (AGAIN)

Once I was staying home with our little girl, our finances changed.  They had to. We could not spend as much money dining out and in other ways as we once did.  We both knew that.   However, we also had purchased a new home and there were things we needed wanted.

A few months before she was born, my husband purchased a pickup.  One month after Emma arrived, we went out and bought a brand new minivan.

Between the vehicles and a home equity loan to buy things for our house, we had accumulated quite a bit of debt.  We just kept juggling the bills and trying to balance it all – and not very successfully.

I started working part-time from home a few hours a week. That meant I was able to be here to take care of my baby, and was also able to bring in a little bit of cash.  It was difficult to do, but I knew we needed the money, so I kept at it.

Our son followed in March 2007.  There was no way I could still try to work the hours they needed for me to, and raise two kids. My kids mattered more.

So, I quit.

We continued getting by.  There were times when we robbed Peter to pay Paul.  We were making it, but not in the way we wanted to.

Then, one evening, my husband told me to go out to dinner with my friends.  Little did I know what would happen next.

THE DINNER THAT CHANGED IT ALL

After an evening of dinner and drinks with my girl friends, it was time to pay.  Most of us pulled out a credit or debit card to pay.  However, my son’s Godmother, Kathy, reached into her purse and pulled out an envelope.

I asked her what that was about, as I’d never seen such a thing before.  She explained how they were using cash for everything instead of plastic because they were trying to get out of debt.

That intrigued me, so I asked her more questions.  She told me how she and her husband had recently started to follow Dave Ramsey.  They were able to create a budget and a plan that was helping dig them out of debt.  She filled us in on some of the program and what they were doing.  That left me wanting to learn more.

When I walked through the door that evening, I sat down and started sharing all of this with my husband.  We knew that our friends did not make much more than we did, so we thought “if they can do it – so can we.”

I grabbed my computer and we started researching this Dave Ramsey.  We had no clue who he was or what he taught. The more we read, the more we were inspired to follow his plan.  We pulled out the debit card and made our purchase.  Nope.  We didn’t even sleep on it.

HOW WE CREATED OUR DEBT FREE PLAN

Once the Dave Ramsey books and materials arrived in the mail, we were like two kids on Christmas morning. We tore open the box and could not wait until our kids were in bed that night…..so we could read!!!

Within the week, we had started our plan.  Luckily, we had around $2,000 in the bank, so our emergency fund was already taken care of. We created a budget and a debt snowball plan and were ready to attack.

I was looking at the numbers and our plan and it hit me. I was in debt again.  However, this time, I felt as if I had brought my husband along with me.  I felt horrible that I was back in this situation.

Yes, this time around the spending was not for the same reasons as before, but it had happened. Were we going to get out of debt and just do this all over again in a few years? Why would it be different this time? Did I really learn from my past mistakes?

I started giving this a lot of thought and realized that even though the bankruptcy was behind me, my money attitude was still the same.

MY (MUCH NEEDED) ATTITUDE CHANGE

When I looked at the money we had spent, I realized that it was because I enjoyed spending it.  It wasn’t because I was trying to replace an emptiness in my life. Heck! I was happier than I had been my entire life.  But yet, here I was, still building debt, buying things I did not really need.

I had to do a lot of self-analysis. It began with me asking myself one simple question:

“What do you feel when you think about money?”

For me, it was simple. I loved it. I loved how I could use it to get things I wanted.  And, not having had much money growing up, I thought I worked hard for this, so I will spend it as see fit.

When I said that out loud to myself, I knew it was not healthy. Money is not here just to get the things I want.  Sure, it is fun to buy items, but those things were never making me happy.  My husband and children were doing that for me.

I took another look at the debt and knew that the money had purchased things.  Those things were replaceable and if I lost them all tomorrow, I’d be OK.  However, my family wasn’t.  There was nothing in this world that could or would ever replace them.  Ever.

In that moment I made the decision that I was no longer going to love money.  I was going to love my family – and myself – more.

For me, it meant changing my entire attitude.  Once that happened, it all started to fall into place.

THE PLAN WE USED – THAT WORKED!

As I mentioned above, we read the Dave Ramsey plan.  While we followed most of what he said, we also had to do some of our own research and come up with our own ways to do things.

For my husband, it meant selling some of the guns he owns (he is an avid hunter).  I sold furniture and other items that were taking up space in the basement.  We had garage sales.  Any money we made from these ventures went to our debt.

I started researching and finding ways to save more money at the grocery store.  And, as a result of my findings, some of my on-line friends encouraged me to start a blog.  (And, we all know where that lead now, don’t we.   ).

Through it all, we did it.

On February 10, 2010, we made the final payment on our mini van.  We had done it.  We had become debt free.

Also See: How to Save Up for a Car Without Breaking the Bank

THE CASH CAR

Once we were out of debt, we were able to start saving money.  It felt amazing to be able to keep more of what we earned and not have to hand it over to everyone else.

My husband and I knew that we would eventually need to replace our mini van. We started paying ourselves monthly payments – instead of a car company.  We built up that savings for many, many years.

When we had enough built up to pay cash for a car, we did not do it.  Even though we had the money to pay for it, we did not really need a new car.  That was a want.

So, we saved even more and researched and waited until the right car came along.  And, it did.  More than 2 years after we had enough money to pay for the car we wanted, we made the purchase.

There is nothing like sitting down at the dealership and writing a check for a vehicle.  There is no worry about how to fit the payment into our budget. The car is ours.  We were able to drive it home and just enjoy it.

The hard work had paid off.

YOU CAN DO IT TOO – I PROMISE

During our journey, I found my calling.  It was to help others, just like you, do the same thing we did.  This blog is how I do that.

I have shared many stories, tips and ideas to help you and your family save money over the years. I know some of you have been able to follow my articles and get started on your own debt free journey.

However, reading a few articles here and there can be difficult to follow. My husband and I did that ourselves.  Yes, it worked for us, but we both kept wishing we could follow a plan that would not just give us a few tools on how to do things, but really be there.

Someone who would hold our hand when we were scared. That we would have others to lean for advice.  We wished that we could celebrate our victories with others who really understood and can relate.

That led me to where I am today.  This blog.  This chance to really help others.  And, in those continuing efforts, The Financial Reboot Course was born.

CHANGE YOUR ATTITUDE – CHANGE YOUR LIFE

For me, the one change I needed to make was my money attitude.  I did not do that the first time around and I ended up making some of the same mistakes. History was repeating itself.

Once you can do the same thing, and really understand the root of how you feel about money, then – and only then – can you start to overhaul your finances.  If you don’t change the way you handle money, you will be destined to make the same mistakes over and over again.

I want to guide you on your own financial journey. I want you to be successful. I want you to be able to shout it from the rooftops — I’M DEBT FREE!!!!

Let me help you make the change you need at this moment in your life.  Kick start your own Financial Reboot, and leave the past in the past.

The post From Bankruptcy to Paying $22,000 Cash for a Car appeared first on Penny Pinchin' Mom.

In 2017, the average American consumer debt rose around 8%.  That results in the average American owing more than $15,000 in credit card debt. Holy smokes!!

Why so much debt?  While some are the result of medical debt and the need to cover living expenses due to a layoff, the majority is due to financing consumers lifestyles. Unfortunately, people tend to live well beyond their means.

They buy out of emotion or wanting to keep up with others.  There are still others who suffer from “shiny object syndrome,” and want the newest electronic that comes out as soon as it hits the store shelves.

No matter how you got into to debt, you have made the decision you want to turn that around.  That’s great!  But, before you sit down and start sending money to your creditors, it is essential you are ready.  You need to learn the steps you must follow if you want to be successful.

IS ALL DEBT BAD?

Well, there is no such a thing as “good’ debt.  However, if you have taken out a home loan, that debt is not as bad as the other, more toxic type of debt.  Credit card, personal loans, and automobile debts are all those you want to avoid.  The reason is that you continue to make payment items that lose value, such as your vehicles. You may also be making payments on things you no longer have, such as meals and entertainment.

If you feel the burden of debt, you are not alone.  Debt can be soul crushing and make you feel as if you are drowning.

But that is not how it has to be.  When you follow these crucial steps for getting out of debt, you get to regain control of your finances.  And your life.

Also see: 10 Must-Know Personal Finance Tips for Mom’s Financial Success

THE STEPS TO TAKE TO GET OUT OF DEBT

1. Know your Net Worth

Before you can start the process of getting out of debt, you need to know your Net Worth. Your net worth is the net results of the assets you own less the liabilities you owe.  Use our Net Worth Worksheet to calculate your net worth.

For example, if your house is worth $200,000, but you own $150,000, then your net worth would be $50,000. When you do this, you gain clarity and can better understand your real financial well being. It can be the catalyst to jump-start your desire to rid yourself of the bad debt once and for all.

2. Stop adding to your debt

If you are in debt, then you have got to stop adding to it.  Right now.  That means putting the credit cards on ice (literally freeze them) or cut them up and get rid of them altogether.

Continuing to increase your debt while trying to get out of debt is entirely counterproductive. To dig out from underneath that mountain of debt, you have to stop spending.  Period. You can’t afford to add to your debt while trying to pay off your old debt.

Also See: Should you pay off debt or save?

3. Start saving

Now, it may seem odd to hear someone say to save money if you are trying to get out of debt, but it is true.  For many, the reason you have debt is that you did not have the cash on hand to buy things you needed.  For others, it is because there was no money available in the case of an emergency.  That has lead to the use of credit to get out of these situations.

To start, do what you can to get at least $1,000 saved.  That way, if an emergency comes up while you are on your debt journey (and it always seems something does), you will have the cash on hand to cover it.  That prevents you from getting further into debt.

Just remember that if you do have to dip into your emergency fund, you need to build it back up again as quickly as possible. Once you are out of debt, you can then continue to increase the balance of this fund to an even more comfortable level.

Read More: How To Rapidly Build Your Emergency Fund

4. Create a workable plan

The key to paying off your debt is to create a plan that works for you. What your friend did to get out of debt may not be the right solution for you.

To start, create a debt plan by making a list of all of your debts.  Make sure you also include the interest rate as well as the minimum payment.  Make sure you include everything: credit cards, vehicle loans, student loans, medical debt, etc.

There are two ways you can then go about tackling your debt.  Pay off the loan with the highest interest rate first, or pay off the one with the lowest balance first.  I recommend that you start with the lowest balance.

The reason is that it helps you stay motivated and see progress more rapidly.  You will want to pay as much as you can afford towards this debt each month while continuing to make the minimum payment on the others. Continue to chip away at the smallest balance until you get it paid off.  Then, take the amount you paid to the now paid off debt and add it to what you pay towards your next lowest balance.  Continue until your debts are paid off.

Whichever method works for you, create your plan and stick to it.

Download my free Debt Worksheet Printable!

5. Find money in your budget

The tough part is finding the money you need.  You have to take a good long look at your budget and figure out where you can cut back, so you have more to pay towards your balances.

For many, the areas to look to include dining out, entertainment, subscriptions, etc.  Do what you can to eliminate any expenses that are not necessary to living. Anything that you can reduce or eliminate will get you on track to paying off your debt that much quicker.

Read More:  How to Create a Workable Budget

6. Add more money to your budget

If you’ve already stretched your budget as tightly as it can go, it is time to see where you can find more money.  In fact, your budget may be the reason you are in debt.

To help eradicate your debt, you need more money.  You can do this by picking up a side job or pick up a side hustle.  You may need to sell items you no longer need. If you can increase your income, you will be on track to get your debt paid down much quicker.

Read More:  75+ Ways to Make Money Working at Home

7. Use extra cash to pay off your debt

Each year, we all file our taxes.  For many, it results in a tax refund.  While it would be fun to go and blow it on something fun, that is not smart if you are in debt.

Instead, use any cash windfalls and throw it at your debt.  That includes not only your tax refund but also any bonuses, gifts, etc.  If you find extra money, it goes towards your debt.

8. Realize that this is NOT going to be easy

Your debt did not accumulate overnight.  So, it is unrealistic to expect it to go away just as quickly.  Paying off your debt is a process that takes time.  It may take months, but for many, it will take years.  In fact, it took my husband and I a little more than two years to pay off more than $37,000 of debt.

The length of time will vary for every person.  You can’t compare yourself to someone else.  There are stories where people paid off $100,000 in 9 months, but that is the exception to the rule.

Commit to the change and know it will take time for you to reach your goals.

9. Celebrate the small wins

If you are pushing forward with laser-focused intensity, you will be successful in paying off each debt.  However, as you do, take time to celebrate your win.  When you know that you get to do something fun to celebrate each small victory, you can be more successful.

It may mean allowing a dinner out or buying a new pair of shoes.  There is no right or wrong.  Just make sure you don’t go overboard – and always pay for it with cash!

10. Learn from your mistakes

I believe this is the most important lesson of all. You need to understand what lead you down this path to your debt.  Then, make a promise to yourself (and your partner) never to allow it to happen again.

Debt and shopping can be a disease.  It is addictive, and it can be easy to find yourself making the same mistakes again.  Talk to your partner and make sure you are accountable to one another.  If you are single, ask a friend to be your accountability partner.

Learn from the mistakes you made and vow never to allow it to happen again.

The post 10 Crucial Steps To Getting Out of Debt appeared first on Penny Pinchin' Mom.

Need to convince your spouse you need to get out of debt?  You can’t just tell him or her.  You need to address it in the right way.

Getting out of debt and taking control of your finances is important to your relationship.  Whether you are just starting out or have been together for 25 or  more years, you have to be in the same page financially, or you will be destined for failure.

So, what happens if your spouse is a spender and you are a saver?  Or, what do you do if you want to create a budget you both contribute to, but your spouse refuses to help?  What happens if you want to get out of debt, but your spouse thinks you are fine?

These are questions I get over and over again from readers just like you.  Get my answers on what you can do if you find yourself in any of the following situations.

CONVINCE YOUR SPOUSE YOU NEED TO GET OUT OF DEBT

I WANT TO GET OUT OF DEBT, BUT MY SPOUSE DOES NOT AGREE

This is a very common scenario.  One person feels that there is too much debt and their spouse or partner thinks that they are doing just fine.  What do you do in this situation?  I’ve got the things you can try to help get your spouse or partner onto the same page as you.

SET A DATE

Timing is everything when you are discussing debt with your spouse or partner.  If you casually mention it over dinner, it may not actually resonate that you are serious.

Set up a date with your significant other.  Carving out time to have a real, honest discussion about your finances can make all the difference.

USE “WE”  – NOT “YOU”

When you sit down to talk, your money and finances should be discussed as “we” and never as “you.”

For instance, instead of saying “You are spending more than you make” – say “We are just spending a bit too much money lately.”

When you are in a relationship, your money is no longer yours and mine, it is ours.  Addressing your debt should be addressed in the same way.

NAGGING NOT ALLOWED

If, after you have this discussion, your spouse is still reluctant to get started, take a break.  Circle back around a few weeks later and have another discussion.

The thing you do not want to do is nag him or her about it.  That will create more resentment and be much less successful in developing a plan you both can follow.

MAKE SURE YOU CAN STILL HAVE FUN

The main reason many people are reluctant to get out of debt is they fear that they will not be able to spend any money on anything at all.  That does not have to be the case.

Talk to your partner about your budget and show him or her how you can still leave money for dinner out or the weekly movie dates you love to have together.

One way that my husband and I do this is that we have a “mad money” fund.  This is money which can be spent on whatever we each want.  We designate an envelope for each of us.  When our money is gone, we are done spending.  We actually have turned this into a challenge to see which of us can actually go the longest without spending any money!  After a few months, we agreed that we both won and then turned around and used that money in planning a Disney vacation.

You are a team and together you will need to work up your budget so it works for both of you.

BE WILLING TO COMPROMISE

When you sit down for your meeting, don’t have everything planned out.  As tempting as it might be to have the budget all mapped out and show it, that may actually result in your partner being more resistant.

When you talk, take the time to truly listen to what your partner has to say.  Once he or she voices concerns, you will also have a chance to make your case.

When you show that you really do want to listen and work together on this journey, he or she may be much more willing to join you.  However, if you shut him or her out of the conversation, you will not be successful.

CREATE A PLAN TOGETHER

Once you both are on the same page with your debt, it is time to make a debt payoff plan. It should include a list of your debts and a way to track your success.  You will work together to achieve your financial goals.  Go through everything together and make sure you both agree to how much you will pay on the debt, your budget and much more.

Putting it in writing will help you both focus on the big picture and give you accountability to one another.  Before you know it, you will be on the path to financial freedom.

The post Convince Your Spouse You Need To Get Out Of Debt appeared first on Penny Pinchin' Mom.