How far are you willing to go to get out of debt? 10 steps to pay off debt

First world countries seem to love debt. Statistically we have a lot of it from the governments to businesses right down to teens with credit cards! I avoid debt although currently I do have a little and it does my head in.

With most cases I see or am asked for advice on, it is consumer debt that has gone crazy. We buy something to make ourselves feel better, we buy stuff as a celebration, we spend up all the time and without much effort I know many couples who owe $20,000 to $100,000 with nothing to show except 'stuff' collecting dust in their homes.

If you had excessive debt, how far are you willing to go to pay it off?

Me, I hate any debt so am willing to do pretty much anything (within reason!) to clear it. When I say within reason, I won't do anything that goes against my morals. What would you be willing to sacrifice or sell, what extra work would you take on to pay off your debt?

Since I do have some and I hate it, here are the steps I am taking to pay off my debt

Step 1 - Get real with the debt

Add up all debt, where it comes from, what it was for, what the interest rate is, repayments on it and how long you are locked in for. List everything - credit cards, personal loans, car loans, loans from friends or family.

Step 2 - Work out which to pay off first

I don't have loads of debts, so this is easy for me. Which one you pay off first is up to you. Some find the method of paying off the smallest debt first works best for them, others work on the one with the highest interest rate. 

As each debt is paid off roll the payments you were making on that debt into your next one plus any extra payments you were making to help you clear the next debt. This is called debt snowballing. 

Step 3 - Work out your budget

If you don't already have a budget, you should. How are you spending you money? What income is coming in? Where can you cut back? Be realistic about what you are currently spending and account for all your income. 

Step 4 - Set a time frame

Knowing your budget and repayments you can now see how long it will take you to repay your debt. Set a timeframe for each a little shorter than anticipated. For example, if with your current payments and budget it would take you 12 months to pay off one debt, set your goal at 10 months, then find ways to reduce expenses and increase your income to bring it down to 10 months. 

Step 5 - Look at ways to cut back

Go over your budget with a fine tooth comb and start implementing ways you can cut back. For example, can you forage for food, barter, do meal swaps or start growing some food from scraps such as herbs and spring onions. 

With this part, I tend to do a pantry clean out and work out a stack of meals I can make based on what we have so I needn't do groceries for a while. Then I get really strict on meal planning and shopping. I look at ways to stretch meals further, find free food etc.

After food, I look at our transport, electricity, compare insurances, look at what I can DIY again if I have stopped doing some of that. Every area of my budget gets scrutinised.

Step 6 - Realise it isn't forever

Think about what you can give up for the period of time it'll take to repay the debt at least. The aim is to never be in this debt again, so you don't want to go back to the way you were before starting to pay off your debt, because it is those habits that got you into this mess in the first place. However, sometimes thinking you are giving up something permanently can be difficult and make it harder to pay down the debt or give things up. This way, you have a timeframe and if at the end of paying off the debt you really want to incorporate somethings back into your lifestyle, you can work out an affordable way to do that.

Step 7 - Make more money

Getting a raise isn't always realistic (but it often isn't unreasonable to ask, provided you pick you timing well), so what other ways can you bring in money?

Take on another job? Pizza delivery, cleaning, gardening, packing shelves at night, working the check out, petrol stations, any job that has out of usual business hours will help you pay down debt. 

Do a side hustle like babysitting, cleaning, ironing, selling books, make things to sell, catalogue run or paper route.

Look at one off options such as market research, donating hair, selling things you own etc.

Look at irregular options such as modelling and voiceovers

Start a side business yourself such as blogging, running workshops, importing something to sell. 

Step 8 - Get an emergency fund

One thing we often find when trying to pay down debt is that we pay a little off, then something happens like all our tyres blow or there is a health issue and we end up spending on the credit card again.

Try to save $1,000 - $2,000 in an emergency fund fast. As soon as you have that, redirect all your extra funds to paying off the debt. 

Step 9 - Throw all extra money at debt

Any money you save or extra money you make pay off the debt, even if it is only $1.05 saved at groceries, throw it on your debt to get it down. All those small amounts add up. 

Step 10 - Change your mindset

Don’t view yourself as poor or broke or sacrificing your lifestyle. Change your mindset to that of someone who wants to be financially free and is taking the steps to do so. A broke mindset is depressing and often makes repaying debt harder. Having a positive mindset of one where you are taking control of your finances to give yourself a financially free lifestyle is empowering and more likely to help you succeed.

What tips do you have for paying off debt?

Not Spending on Things That Don't Matter

Not spending on things that don't matter means you're able to spend money on the things that do.  Everyday, we come up against spending decisions.  Some of them are big, and some of them may seem too small to matter.  Those small things really add up, though.  If we can instead throw those small amount of money into savings, we'll be all the closer to our goals.

Here are five things that I've chosen not to spend money on:

1. Curtain Rod Hardware

We used to have slat blinds in our apartment.  They weren't surviving our children well, and I had noticed some of our neighbors had curtains.  When my mother's neighbor offered up some of her old ones, I happily took them, along with the curtain rod.  After asking our landlord if he was okay with the switch, we got to installing.

There was only one problem:  we had no hardware to hang the rod from.  I know that my interior design doesn't matter much in the grand scheme of things, so I flipped the hardware for the blinds, cut off the end of a hanger, and secured them together thoroughly.  It might be rigged, but it's hardware we didn't have to spend a cent on.

2. Haircuts

For a few years, I cut my own hair.  I'm no professional, so eventually I inevitably botched a job.  It was traumatic, and I decided never to cut my own hair again.  In subsequent years, I visited the dresser about once a year.  I was able to get away with it with my long style, and wasn't overly concerned with having a trendy cut.  After a few years of this, I decided to try a cheaper, walk-in salon.  The hair dressers knew what they were doing there, too.  I've stuck with them.  Now I'm able to get cuts more frequently, and they only run me $15/cut as opposed to the $30-$60 I was paying before.  I have found no difference in quality despite the disparity in price.

I do like to look presentable, but if I can do so without going to the salon every month, I can allocate that money to more important goals.

3.  Furniture

I have young kids, so furniture is not high on my priority list.  Any furniture I have will surely be destroyed in a few years thanks to spilled sippy cups, unauthorized jumping, and art projects gone awry.  Instead of going out to buy matching pieces, I accept every hand-me-down that comes my way.  I've avoided spending thousands, and still provided my family with couches, a table where we all eat together, and all the other trappings a typical home has.

4.  Gift Bags

I hate spending money on overpriced wrapping paper. I do, about twice a year, but mostly I use gift bags my own children have received at birthdays and Christmases past.  I also save the tissue paper.  They get a lot of wear, and I don't have to go out and buy every time someone gets invited to a birthday party.

5.  Family Time

Hear me out on this one.  Family time does matter to me.  Very much.  But I've realized over the years that it doesn't matter so much what we're doing, as long as we're doing it together.  Instead of spending a ton of money every time we go out, we seek out free events, discounted or free days at our local attractions, and utilize the parks and numerous green spaces in our city.  By doing things together that are low-cost, we're able to splurge on the occasional kids' concert, and do whatever we want when we go on vacation.  We save that money every time we go out so that we'll be able to enjoy a few extravagant things together.  Another part of the savings allows us to propel ourselves to our family goals, like home ownership, at a faster clip.

What things don't matter to you?  Do you spend money on them anyways?  Or find ways to save?

10 ways to get more water

Water is vital for health, so why is it so hard to drink enough of every day? We need to stay hydrated to function well. Our body organs depend on it and without it, we’d die. Considering that, you’d think water would taste like marshmallows or wine. Unfortunately it doesn’t, so we have to think up strange and creative ways of forcing ourselves to drink enough to get us by.

Here are a few tips to get you started.

1.) Make sure it’s clean. Town water can taste a little like chlorine or metal, so try filtering it first. You may find that improves the taste.

2.) Carry it with you. It’s easy to forget to drink but if you always have a water bottle with you and keep it full, there’s more chance you’ll sip through the day.

3.) Tea it up. Swap out coffee and black tea for naturally caffeine free variations like hibiscus or jasmine. They taste great hot or cold.

4.) Add fresh herbs or fruit.  A slice of orange, a handful of berries, mint or cucumber at the bottom of your drink bottle will give a little flavour without adding sugar or additives.

5.) Add it to food. It’s harder to drink water when it’s cold, so incorporate water based soups into your day instead. Chicken broth and vegetable soup are great options.

6.) Eat it. Foods with a high water content like celery and fruit will increase your hydration levels.

7.) Force yourself to drink it. By making yourself drink a small glass of water a few times per day, you’ll adjust quickly and start craving it when you don’t.

8.) Add ice. Some people find this make water more enticing.

9.) Have it hot. A hot cup of water with a slice of lemon will warm you up on a cold morning and set your digestive function up for a great day.

10.) Try an app like waterlogged. They remind you to keep drinking water through the day.

Make sure you stick it out. Your bladder will adjust after a couple of weeks and so will your body. After a while it will get easier and you’ll find yourself reaching for the water without even thinking of it!

How to Switch Careers Without Going Back to School

Bored at work?  Not as passionate about your field as you thought you would be at university?  Then you've probably thought about switching career tracks.  Oftentimes, this means needing more formal training or schooling.  But sometimes, you can get away with switching fields, doubling your salary, and doing it all by teaching yourself.

That's exactly what Mr. Stapler did.  Once bored in his career in the field of law, he now works as a programmer, making double what he did in the legal field.  The best part?  He gained all of his skills through self-education in his downtime.

Today we have an exclusive interview with him, including some tips and tricks to turn your side hustle into a lucrative career that you are passionate about.  Bonus for all the wanna-be programmers out there: he provides some great resources for you!

Tell us a bit about your career change.  What sector were you working in before, and where are you now?

Unfortunately, it took me three years of training, a bar exam, and two years working as a lawyer before I discovered that I didn't enjoy being a lawyer and that my passion was in software programming.

Why did you make the switch?

I took a full-time programming job because I was sick of my current legal job and saw no future for me there. Programming was so much more exciting and rewarding because there is a finished product. The legal work I had been doing was ongoing and pretty boring.

How did you initially get into programming?  What sparked your interest?

Honestly, I had a job with a lot of wasted time. We were "on call" at our desks for hours on end, with nothing to do. Some co-workers watched movies; some co-workers took naps. I taught myself how to program.

How did you build the skills you needed to be successful in programming?  What resources did you use?

Coding is a great skill to learn on your own because there are so many free resources and it's a very hands-on learning experience. You learn by thinking of problems and figuring out how to solve them. In the process, if there's something you don't know how to do, you can look it up online and usually find that other people have tackled that problem before. I read a lot of handbooks and "cookbooks," read through some of the open courses at MIT, and asked and answered questions on Stack Overflow. Code Academy is another great way to learn how to program.

How did you build the network you needed to be successful in programming?  What resources did you use to build relationships and find new clients?

At first, I found side projects on Elance. I also contributed to some open source coding projects. Once I started working full time as a programmer, the opportunities to meet new clients and learn about possible projects were hard to miss. I also joined a local Meetup group for my programming language and heard about opportunities that way.

Do you think this is something someone without a college degree could do, or do you find that your degree still gets you in the door even though it's not in your sector?

If you can learn how to program, you can develop a portfolio of sorts that demonstrates what you can do. Many interviews involve answering technical questions or even programming a solution to a specific problem. That said, a degree will get your foot in the door and get you the opportunity to prove yourself with your portfolio. If you don't have a degree, you can get your foot in the door by networking at Meetups, participating in open source projects, and creating a repository on GitHub.

What do you recommend to those looking to make the transition from side hustle to career?

I have contemplated going from full time to fully self-employed many times, but I would never make that leap unless I had a contract for a "side" gig or two that would replace my current income in eight months or less. That would give me room to get a raise and put it in the bank in case I had a slow period.

At some point in a side hustle, you just don't have enough hours in the day to do all the work that you want to do. That's when I think that it makes sense to take a leap into a full time job: when your day job isn't nearly as exciting as your "other" job.


Thank you, Mr. Stapler!  Readers, have any of you made a dramatic career change?  Did it require more formal education, or were you able to learn the skills you needed on your own?

How to Harness Your Inner Power

Inside each one of us, there’s a well waiting to be tapped.  What we draw from that well is power.  Not the kind of power that oppresses others, but the kind of power that fuels ourselves. That power helps make us confident.  That power helps us get through hard times, whether they be relationship problems, the loss of a job, or inner, existential conflicts.

Some people seem to have easy access to their wells.  They’ve set up camp nearby, and have the latest pulley system ready to send a bucket down to make a withdrawal at any moment. Some of us have to look a little harder to even locate the well.  Once we get there we’re pulling the heavy bucket up hand over hand.

If you’re having problems accessing your own well, give these five tips a readover.  They can help you harness that inner power, even when you feel like you have none.

Focus on Helping Others

It may seem counterintuitive that one of the first steps to finding your own inner power is to help others, but there are rare few things that can get us back on track as quickly.  When we focus on others, we are forcing ourselves to make our own problems secondary.  Any depression, self-loathing, or other blocks that are holding us back are put on hold as we focus on what we can do to make the other person’s situation better.  While the process should focus genuinely on the other person, by doing so you’re likely to discover or rediscover some of your own strengths.

Stop Comparing

In our world of Instagram- and Facebook-perfect lives, it’s easy to think that everyone we know has their lives ordered just so.  Comparing has always been an unhealthy activity, but it has become even more unrealistic as every last person in your family, circle of friends, and extended circles posts all the fun things they’re doing, while leaving out the bad.

While this is true, it really wouldn’t matter if someone did have a perfect, charmed life.  As humans, we all have what we perceive to be problems.  While someone else’s trials will inevitably look different from your own, that doesn’t mean they don’t exist.

Similarly, just because someone else has wild success doesn’t mean that there’s not enough left in the world for you to be successful, too.  When someone else is pretty, it doesn’t diminish your own beauty.

When someone seems to have found their inner power, it doesn’t mean that yours is a lost cause.  You are drawing from separate wells, and both are infinitely deep.

Change Your Thoughts

“Watch your thoughts; they become your words.  Watch your words; they become your actions.  Watch your actions; they become your habits.  Watch your habits; they become your character.  Watch your character; it becomes your destiny.” -Unknown

This notoriously famous quote holds a lot of wisdom.  With it, we can see that everything in our lives can be affected by our thoughts.  When we change our thoughts into ones that empower us rather than self-destroy, we build confidence, and are able to harness that power within us easier.  Need some help changing your thought process?  Check out tips one and two here.

Meditate

Almost all religions of the world teach about a higher power.  Some teach that the power is within us, while others teach that it lies beyond.  Most religions also teach some form of meditation to access or connect to that power.  Some forms include prayer, mindfulness meditation (where you focus on your breathing, etc.,) mantra meditation, and yoga.   Use whichever form works best for you and your religious beliefs.  Even if you have none, meditation is a powerful way to center yourself when you feel like your world has gotten crazy.

Push Your Boundaries

Going outside of your comfort zone can be scary.  If you don’t feel like you have enough power to make it through what’s already on your plate,  how are you supposed to add more?

When you push your boundaries, you’ll surprise yourself by what you can do and what you can handle.  Even if you don’t achieve a 100% success rate, the confidence you’ll gain from trying is well worth the trepidation.  Odds are, you’ll be shocked by what you can achieve.  If you never push yourself, you’ll be stuck in the same place.  It’s like your well of inner power being over the next hill:  the one you’re too afraid to climb.

Saving on Kids' Programming

When I was a kid, we moved around every few years.  I distinctly remember the excitement of turning on the TV in a new locale, and finding out that we had Disney channel.  Disney!  The most coveted of all kids' channels, which I now know is because it was in one of the most expensive cable packages.

In retrospect, I'm sure my mother must have gotten a great deal.  She probably wasn't concerned about prices going up after the one-year contract was over, because there were good odds we'd be packing up and leaving at that point anyways.  My sibling and I were so incredibly grateful.  We had something to watch other than the public broadcast kids' channel, and the only other kids' station of which my mother wouldn't let us watch 75% of the programming.

The times have changed.  Where my mother's options were cable and VHS tapes, today we have so many streaming options that paying outlandish prices for kids' channels on cable or loading up on a personal DVD library seem like traditions of the past. If you're just starting out on your cable-free journey, here are the ways we've been saving on kids' programming since we cut the cord.

Subscription Streaming Services

In my part of the world, the best I've found for this is Netflix.  Their prize streaming material isn't so much in the movies they have available, but the shows.  For my kids' attention spans, that is perfect.  Other options in your area may include Presto and Stan.  It would appear Stan has less of the popular kids' TV shows, but they do have a lot of movies for a child-aged audience.  These services range from $9-$15/month.

YouTube

YouTube is amazing.  Since you can make money off of ads, there are companies that exclusively make kids' programming, viewable for free, for YouTube.  It's been a goldmine for us largely for educational pursuits.  I taught my kids how to count.  When we got to the ABCs, they were mildly interested.  But introduce a talking train that helps them find all the letters?  They know the alphabet and introductory phonics so well now that they can do it backwards.  

It's funny to me, because when I was growing up watching TV there would be ads before, after, and during the shows I was watching.  Now my kids are so spoiled by ad-less streaming that when a skippable ad comes up every few videos they get concerned that I've picked the wrong show.  That is one thing to watch out for with YouTube.  The ads, even on kids' videos, are not always kid-friendly.

Libraries

Your local library can also be a great place to go for kids' shows and movies.  Scroll through their catalog for movies and shows available to borrow on DVD.  All for the price of $0.

Cutting the Cord Doesn't Mean You're Tossing the TV

When you first cut cable, it can feel like you're putting yourself through a great deal of self deprivation.  Really, with all the options we have today, you probably won't even notice that it's missing.  Neither will your kids.

Changing the Social Media Message

How much time do you spend online? For most of us, it’s a lot. We read, post, tweet, watch and interact like never before and have access to a whole world of information at our fingertips. Because of this, it’s more important than ever before to watch the messages we absorb and then put back out to the world. 

How often have you clicked on a news articles just to read the comment war? How often has it left you feeling angry, demoralised or spewing you feelings out to the world in the comments section yourself? I know I’ve done it- typed out a long, thought out response to a news topic or comment thread, believing my careful words would make the world a better place. It doesn’t, of course. The next comment is often a crude insult or loud opposition and the world keeps turning. I don’t read comments these days, especially on topics like asylum seekers, global warming, the homeless, weight and body image, parenting or… well, anything except adorable pug dog videos. It’s too depressing to read such negative words and horrible slurs bandied between strangers, about strangers.

If you feel like social media or other internet or media sources make you feel angry, frustrated, depressed or are lowering your self-esteem you need to change it. Here are some tips that may help you to have a more positive online experience.

Control what goes in

Whether it’s too many photoshopped celebrities, out of control flame wars or just a deafening abundance of ‘positive’ memes that make you feel anything but, you can change what you see. Start by going through the pages and people you ‘like’ or ‘follow’ on social media platforms. Do they genuinely add to your experience? Do you feel uplifted or dragged down when their name pops up in your feed? Get rid of any that do the latter. If you need to, you can ‘hide’ the Facebook feed of friends if you want to stay connected but don’t want to read what they share.

Make sure you have diversity, too. Seek out people that love what you do- Rockabilly fashion, sci-fi books, amazing gardens, math jokes and cute kitties. Look for things that will educate and inspire you. It will take some tweaking as you may find some sources more controversial than you realised and others may be not what you thought, so make it a constant quest to fill your screen with things that make you feel happy, empowered or educated.

Don’t stop at the internet- magazine, TV and radio can all give you similar feelings. Swap your trashy tabloid for a social consciousness magazine and swap reality TV for a great documentary.

Control what goes out

Be aware of what you like, share, retweet or post on social media. Choose your words carefully and ask yourself if you’re putting out positive vibes, or feeding the negative ones. Don’t put yourself down and don’t criticize others. Don’t engage in heated debates unless you’re sure you can keep a cool head and stick to your message, without getting upset or making it personal. That’s not to say that you shouldn’t share if you’re having a bad day, just try to make sure that on balance, you’re being uplifting and positive. If you feel like to need some support try calling someone and talking to them in person. It will more than likely get you a much better result than relying on social media.

Take a break

Above all, remember what this virtual world is all about. It’s a false depiction of a world that is bright and warm. It might have its problems but it has a lot of good things and you can’t experience those from behind a keyboard. Go for a walk, throw a ball, make a snow angel or build a sandcastle. Read a book. Sleep in a tent. Get away from your screens and make a devoted attempt to disconnect every single day.

Have you taken any steps to control your social media?

Author: Amy Hopkins