Steps to becoming debt free
- Recognize you need help
- Look at your finances – bills/owing
- 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.
Provincial Student Loan
National Student 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.
- Save $1,000 in a starter emergency fund
- Pay off all debt using the debt snowball
- Put 3-6 months of expenses in savings
- Invest 15% of income toward retirement
- Build a college fund for your children
- Pay off your mortgage
- 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.
- Pay off debt using the debt snowball
- Save for Christmas
- Save $1,000 in an emergency fund
- Start Tithing 10%
- Invent more in my RRSP
- Put away 3-6 months of expenses in savings
- 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?