Imagine: you’re shopping, and you see something that would look really nice in your home, a funny toy or some fairy lights, and you want to get it. It’s only £20, what do you do?
You leave that little dream killer right there on the shelf, where it belongs, and you walk out of the shop. And then you leave the shop area and go home.
What I’m suggesting here, is a change of priorities, but also a change in perspective. If you make 100 unnecessary £20 purchases in a year (that’s one every 3/4 days) then each year you are £2000 more in debt. Depending on how much debt you’re paying off, this could be the difference between debt and debt free.
There are some expenses that we are tied into (rent, car payments, phone payments) which are harder to get out of without paying even more money. But you and you alone have control when you walk up to a cashier with money in hand. You can change your mind. You can even change your mind after you’ve bought it, and get your hard earned money back.
Your life will not be better or more interesting or special because of that purchase, and if you really want to be debt free as soon as possible, you need to let go of the idea that you need any extra things. All you need to pay for, is your household bills, your insurance, transport, and some food. If you’re feeling extravagant, you could add in a mobile phone contract and Netflix.
If you have enough clothes to wear for 2 weeks, then you don’t need any new clothes.
Next time you want to go out with friends for a meal or drinks, you need to choose “Am I going to go out and spend XX amount of money, or am I going to invite them over for dinner so we can cook / have a few drinks at home?”. If you consider each £1000 of debt as 100 of these little decisions, or maybe 10 slightly bigger decisions, it may get easier to pay that mother off.
Whether it’s Halloween, or a religious event, or just a Thursday, ask yourself, “is this item more important, or is paying off the debt more important?” If you choose paying off the debt 100 times, you will have saved a huge amount of money.
Debt free step 3 is up now.