Steps to becoming debt free

1. Recognize you need help
2. Look at your finances – bills/owing
3. Cut unnecessary expenses

I have known I’ve needed help for a long time but never did anything about it until this Fall. I made a list of my expenses and decided to make a change. I want to be debt free before I get married, so this was my first step.

iPad
Personal Loan
Provincial Student Loan
National Student Loan
Credit Card
Car Loan

I started with using the app EveryDollar for keeping track of my spending. So far it’s not too bad, it’s easy to use, but I’m not sure if I will keep using it. I do believe it works but not sure it’s working for me. For years I’ve used my google calendar to keep all my life organized. I especially use it to keep my bills in check. I know when everything comes out and can add in extra money where needed.

Everydollar

1. Save $1,000 in a starter emergency fund
2. Pay off all debt using the debt snowball
3. Put 3-6 months of expenses in savings
4. Invest 15% of income toward retirement
5. Build a college fund for your children
6. Pay off your mortgage
7. Build wealth and give

I actually started with the snowball effect first then will work on an emergency. Also some of these may not apply to you at this time, I know they don’t for me. But find other ways you can use your money.

My list:

1. Pay off debt using the debt snowball
2. Save for Christmas
3. Save $1,000 in an emergency fund
4. Start Tithing 10%
5. Invent more in my RRSP
6. Put away 3-6 months of expenses in savings
7. Start saving for the future

It’s all about making the right choices. Do I need this? Does this benefit me in some way? I know I need to change my thinking when I spend money.

How about you?