That’s the goal, right? At least it is to me. I want to get out of debt today, or get out of debt sooner rather than later.I hope to be out of debt in four and half years. I’ve had about a year where I’ve piddled around with my debt but to really apply myself with my debt freedom program I have to stick things in high gear so I can get out of debt soon.
When I’m out of debt I have one thing that I don’t have now and that’s choice. When I have choice I can choose to do whatever I want with my money. I can choose to take the bus or take a train. Or live on a boat.(that would be the day). But I have choices. I can live in a cheaper apartment and spend the money I save with rent and use it for a down payment on a bigger house or use the difference between buying and renting to save for a dream property. Maybe it’s a time share although I doubt it as I like variety and novelty a whole lot. I value learning and adventure on one hand but on the other it’s sure good to have a place to call home that’s your own – even if it does require a wee bit of lawn maintenance.
And with debt freedom and some hard work the world truly is my oyster. I can do whatever I like becuause I would owe no man or woman any money. The best part would be to tell the bank to chase themselves, but we all need a bank of some kind so I’d probably stick with the Royal Bank of Canada. I’ve been there a while (20 yerars) but I have no real relationship with any one banker. I guess that’s the price you pay for debit cards and ATMs, and that’s the fact that personal banking isn’t all that personal any more, at least I find.
I notice that TD Canada Trust is offering a $250 reward if you switch banks. It’s tempting to switch but I have no history with TD Canada Trust and there’s something to be said for that. I offer value to the Royal Bank. Not much right now granted but I’ve still got 20 years with them and if they and I both work together we could both very well benefit from another 20 years or more. That’s not something I want to give up for a free ipod or $250 buyout.
I’ve done it again and rambled away here about banks in Canada when I really wanted to talk about how to get out of debt as soon as possible regarless of where you live or who you bank with and here’s how.
Spend Less Money
Make More Money
Apply the difference to Debt
This my friends is the magic formula to getting out of debt. You don’t need to buy books,or ‘get out of debt systems‘ or anything that’s being pitched on late night TV even if it does come with a free snow shovel. The only thing you need to dig yourself out of debt is you.
We all have circumstances that led us to being in debt – myself included and we all can get out of debt the same way we got into debt but just do it in reverse: When you got into debt you borrowed money you did not have to buy something. It could be a house, a car, a business a new sweater – the particulars aren’t important here. All that matters is you stop spending and start saving and putting that savings to debt.
Do you have $20? Were you planning on going to the movies or out for dinner, or spending that $20? You were?! When you are in debt? Take that $20 and then apply it to your debt. Do it again next week. Want to know what happens a year from now? You’ve got $1000 (actually a bit more) to that debt by saving $20 a week!
But But But…I have a date need to see the latest iron man movie. Well..not really. Not if you want to get out of debt as soon as possible you don’t. You need to get out of debt, and the sooner the better because you can then go to out for dinner constantly because you will have the positive cash flow to do so. And what if you could find $40 a week? That’s 2 large a year from now. For $40 a week. Stay home and barbecue your own steak instead of going out and dining on food you can’t afford.
I’ve found a funny thing starts to happen that’s a bonus when you do this: Not only do you save $20 or more a week but you start to eat healthier and not only that (and here’s the part that blows my mind). You start to get to be a pretty good cook! You start to watch Julia Child because you’re interested in cooking. You start to lust over le crueset and good knives and a real cutting board and oh my – wouldn’t an island in the kitchen be nice? But you can eat well at home, save money with nothing more than the IKEA starter kit for the most part so don’t get sucked into the I need the toys so I can do this. You don’t need the best golf clubs to be the best golfer and you don’t need the best cooking utensils to be the best cook.
What you do need – and all that really matters is to get out of debt soon.
More Bad News