For many people, there is a big moment in their life when they think “I need to evaluate my finances and get out of debt.” This is a life-changing moment. What happens when you have that moment? You spend hours, days or weeks researching the best way to get out of debt. You sit down and take a real, hard look at your personal finances. You account for every penny brought in and spent. You come up with a balanced plan and make a commitment to stick with it.
You may be doing great for a year, and then life happens. Maybe you have a pay reduction. Maybe you move to a more expensive city. Maybe you get a better job and your pay increases. Whatever the change, it’s a change and you need to account for it. Your old plan won’t work anymore.
How do you rebalance your plan? Do you spend weeks again looking at your numbers, trying to make it work? Do you have a plan for rebalancing your plan? It is important to make sure your debt elimination strategy makes that rebalance easy. No spending hours at a time poring over your spreadsheets. No more trying to determine if you will still be able to save money or pay your debts off faster. A plan that is laid out for you.
This isn’t to say you may not have a hard time figuring out what you may have to cut out or change in your life. You can’t always click a button and still have your cable TV, dinners out and luxury items. Life just doesn’t work that way. But you can still look at your plan and know reasonably when you can expect to be debt-free. You can still have a goal and know what you’re working for. You can find balance wherever you are in your life.
Here are three ways to maintain your financial balance:
1. Make decisions based on logic, not emotions.
2. Practice conscious spending.
3. Reduce recurring expenses. You’ll be able to change your spending according to your earnings if you aren’t tied to long-term commitments.
If you need some help putting a plan together and aren’t sure where to start, don’t worry, that’s what we specialize in. So when you are ready, you can always get in touch with me or put in a Debt Melt Down application at my website.
If you are going at it on your own (as many try to do at first), then make sure you keep these timeless words of wisdom in mind as you go about designing your debt elimination timeline.
Your Debt Expert,