How To Live Debt Free-A Minimalist Lifestyle

I have mentioned this before but I will again. I am shocked when I find out how much money some people earn and baffled that they are barely getting by financially.

They are living paycheck to paycheck. What this means is that if they were to miss just one paycheck they would not be able to pay the bills.

In Canada 60% of households are playing this game. I would guess it is about the same in the United States.

We all shake our heads when we hear of athletes that earn millions of dollars and now they are going bankrupt. Why should they be any different? It is just on a larger scale.

Related– A Personal Budget Plan That Actually Works.

Money and personal finance is a huge mystery to most people. The basic are not taught in school. There are many people out there who don’t pay attention to their monthly income, never mind their monthly expenditures. They have no idea where the money goes.

There are couples who keep their incomes a secret from their partners. Yeah, that’s a good idea.

There is a great show I watch called Till Debt Do Us Part. The host goes through a months worth of spending and tries to get people back on track.

These people are spending thousands more each month than they even earn! How is that possible?

The host uses phrases like wants versus needs and delayed gratification. Phrases that people who live a minimalist lifestyle are familiar with.

People are chasing happiness through spending. They are trying to create an image. Fancy house, fancy car, fancy clothes. We know this.

So now you are tired of living paycheck to paycheck. You would like to know how to eliminate personal debt. How to live debt free.

Here are the top tips on eliminating personal debt and how to live debt free.

  • Track your spending for at least two weeks. Better yet a month. Write it all down and keep every receipt. Add it all up.
  • Write down all your recurring monthly expenses. Cable, phone, cell phone, car payment, insurance, rent or mortgage, etc
  • Figure out if you are inline with the recommended household budget percentages based on your net monthly income. Go here for the guidelines
  • Chances are you are out of whack with your spending in more than one category. Figure out what you should be spending in each category and put that amount in separate containers.
  • Are there things you can do without? Do you need the full tier cable package? Do you need both a home phone and a cell phone? Maybe you need to sell stuff
  • You are now going to spend only that amount and you are going to only use cash. No more debit cards or credit cards. Keep writing every expenditure down.
  • You have to come up with a debt repayment plan. Bite the bullet and call everyone you owe money to and discuss repayment options.
  • Figure out a way to earn more money. Work extra shifts. Do child care. Mow lawns. Help a friend who has a business. Swallow your pride and do it. Put all the extra money towards debt repayment

Look, eliminating personal debt is going to take a while. Stay the course. Baby steps. You have to spend less than you make. This is known as living withing your means. Interesting concept.

Keep reading this minimalist lifestyle blog for more tips, insight and hopefully inspiration on minimalist living. Please share your tips on how to eliminate debt in the comment section.

The only way this message reaches other people is if you share it. Please share it on Facebook and Twitter. Thanks.

“Live Simply”

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5 thoughts on “Reducing Personal Debt. Tips On How To Live Debt Free

  1. I think people tend to go with the flow. I’m not sure how much of it is the conscious thought, “I need to keep up with the Joneses.” I think it’s much more subtle, and therefore insidious. We get cable TV because everyone else has it. We buy this car or this outfit because we see others with it. We don’t think; we just do. Living debt-free and living simply require much more thought than most of us are used to spending.

    I just want to add one more thing: once you start eliminating wasteful costs and start saving, it becomes contagious. You’ll want to eliminate more and save more. It just takes a couple of first steps. Great post!

    1. You are so right! It has become accepted to live this way. I heard a radio spot today on a completely unrelated topic(a medical thing) but they were commenting on how we believe what we want to believe. We believe that it is okay to be in debt and overspend every month. It is just accepted. And you are also right on with it being contagious to want to keep going. Thanks so much for commenting!
      Mark

  2. I can attest to the beauty of living debt free. It can be as Domestic Kate says … contagious. Put your blinders on and keep your eye on the prize because it’s worth it. I like what my brother says: Watch your nickels and the dollars take care of themselves.

  3. Luckily I don’t live paycheck to paycheck but I am slack on paying my credit card. 2017 is the year for paying my debt and saving as much money as possible so I’ll be penny pinching from now on and sharing my tips along the journey. Great post. Thank you for sharing.

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