5 Ways to Financial Sanity
“A budget is telling your money where to go instead of wondering where it went”
– Dave Ramsey
Our everyday lives are riddled with expenses—some planned, some not. So, it’s no surprise that one can easily find oneself in a hole of debt without much recollection of how one ended up there. This needs to change. The average American has $18K in debt and living in a state of financial strain can directly affect our state of mind. The purpose of this segment is to encourage you to take control and responsibility for your finances and offer some practical tips and advice that will help you work toward living a debt-free life.
Difficulties in finances lead us to depression and anxiety. Monetary challenges are real and cut to our core. The average American has $18K in debt. This can impact your health and it also can impact your marriage. A $10K debt doubles your chance for divorce. Couples that fight about money are in a very painful and vulnerable state. It takes both parties to get on top of the budget, but this can be challenging when each person has different ideas about spending versus saving.
- Take responsibility. Change your mindset in thinking that this is outside of your control and that you’re a “slave” to your debt.
- Get on a budget. Get Dave Ramsey’s app, EveryDollar and track your money. Read Dave Ramsey’s The Total Money Makeover. If you want, there is a great 9 hour primer course that you can take at Financial Peace University
- Start a Debt Snowball. Write down all of the debts that you have, putting them in smallest to largest order. Pay off the smallest debt first and then knock down the rest in order.
- Reach out to others for accountability or help.
- Celebrate your success and set clear goals.
As you start getting out of debt, you’re going to love the freedom that living debt-free allows. Live with freedom; debt holds us down, but it does NOT have to. When you make that commitment to work on getting debt-free, amazing things can happen for your life.