How many times have you said, “I’ll pay it off one day,” or fooled yourself into thinking you’ll do it when, and if, you earn more money? Leaving debt reduction in the realms of future plans is a surefire way to accrue more. We do this because it often feels too overwhelming to tackle. However, when you make easy lifestyle changes, right now, those future plans will include living debt-free.
Start obsessing over reducing debt, with a positive mindset.
Focus on your plan of attack
We choose what we focus on and, for many of us, that includes family, work and maintaining the lifestyles we love to live. It’s no surprise that something as scary, frustrating and downright boring as debt gets pushed to the mental sidelines. Without intense focus on reducing it though, it’s not going to happen fast.
Start positively obsessing about reducing your debt. Not in the form of worrying, but in the knowledge that by doing so you’re sprinting towards a debt-free life and financial health. Face your debts head on by writing them down and creating a plan of attack to follow with a vengeance. Get excited each time you reduce bad debt, such as credit card bills, and you’ll soon find the motivation to pay even more off next time.
Replace expensive hobbies with cheap or free ones.
Replace expensive hobbies
The good news is, you don’t have to give up any hobbies.
Think about your hobbies and write down how much they cost you each year. They could be anything from magazine subscriptions to gym memberships, travelling and dining out. As these are the things you love doing, chances are you excuse the expense by thinking something along the lines of, “I work hard for my money, so the least I can do is treat myself by doing the things I love!”
This is a true statement, and something you absolutely should invest in. First though, take a look at the overall amount you spend on them. If you used that money to reduce your debt, how much more quickly could you pay it off? If you paid off your debt, how much more freedom would you have to enjoy the things you love? So much more! The good news is, you don’t have to give up any hobbies. Simply find free or cheap replacements while you’re focusing on reducing debt. Swap the gym for a park with exercise equipment, travel close to home and hold your own dinner parties among friends.
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Find freedom in minimalism
Minimalism isn’t about depriving yourself, it’s about releasing yourself from unnecessary encumbrances that eat into your budget. Having an abundance of ‘stuff’ tends to make us anxious and feeds the addiction to accumulate more. Change your mindset by focusing on experiences and the wonderful little things in life - rather than material objects - to instantly curb your spending habits.
Analyze your spending on a daily basis to keep a close eye on how many ‘things’ you buy, and if you really need them. The key is to make every dollar count, so consider this the next time you feel like you simply can’t resist buying...xyz.
Ask yourself: “If I put that money towards paying off debt instead, how much closer will I be to my goal of financial freedom?” When you use this mantra in everyday life, you’ll find yourself on the fast track towards a debt-free one.
This information is provided by DPN Pty Ltd ABN: 94 630 700 186 Australian Credit Licence 514759. DPN Finance Pty Ltd is an authorised credit representative 504129 and related entity of DPN. Credit for Dream Big 100% Offset and Work Smart 100% Offset is provided by Adelaide Bank a division of Bendigo and Adelaide Bank Ltd, ABN 11 068 049 178 and Australian Credit Licence 237879.