How to Feel Financially Empowered on a Small Income

feel financially empowered on a small income

Do you think it’s possible to truly feel financially empowered while you’re living on a small income? Does more money equal more power over your own life? I would argue that it’s never that cut and dry. The breakthrough in my financial story wasn’t the day I doubled my income. It was the first big shift in my mindset.

Broke Vs. Poor

“Being broke is a temporary situation. Being poor is a state of mind.” – Mike Todd

When my husband and I agreed to transition from a dual-income to a single-income family shortly before our second child was born, we lived on $36,000 for the next year. Sure we were glowing with adoration for our newest bundle, we were out of debt, we had an emergency fund, and we were glad to have one parent at home full-time with the children, but living each month on $1,600 . . . → Read More: How to Feel Financially Empowered on a Small Income

The Absolute Best Way to Get Rid of Debt

get out of debt - doubt bigger than belief

During my four years of writing on this blog, I have published a countless number of articles to teach people how to get rid of debt. But, I have recently realized that they are all wrong. In many of them, I have provided the steps of picking out the smallest debt with the highest interest rate, and explained how you can scrounge up the money to start paying those bills and getting out of debt.

While these simple methods might work for some, I have seen a countless number of people pay off some debt, then get deeper into debt, pay off some debt, and then take on some more debt, and the cycle continues again and again. “Why don’t people just do what I tell them to do and get rid of debt?!?” I have often wondered. Just recently, I have discovered the answer: belief. Or, to be more . . . → Read More: The Absolute Best Way to Get Rid of Debt

Start Tackling Your Debt One Dollar at a Time

cut your spending in half

Are you ready to start tackling your debt? Yes, it can seem daunting to start tackling your mountain of debt, but it IS possible! By focusing on paying off just one dollar at a time, paying off any debt is possible. Even a massive debt can be paid off sooner than you might think. Just keep your head down and keep chuggin! You can do it!

Don’t Forget Your Reasons For Getting Out of Debt

If you start tackling your debt without a real reason, then you likely won’t ever get to the finish line. For instance, if you decide that you would like to pay your debts down because it would make your spouse happy, or because your friends are doing it, these are not real reasons. You need to be emotionally driven by your reason because your debts simply won’t get paid off overnight. It’s going to take . . . → Read More: Start Tackling Your Debt One Dollar at a Time

Would You Sell Your Car to Get Out of Debt?

Just the other day, I read an article about paying down your car loan and the author suggested that a car loan should be paid off before you start paying down your credit cards (if you are trying to get out of debt that is). He had five solid reasons for doing so, but I just didn’t buy it. So, I left my opinion in the comments section:

Derek@LifeandMyFinances says:

All of the reasons make sense, but I just can’t get over the fact that you will be losing more money to that credit card interest (because it will almost always hold a higher percent interest than the car loan). I would recommend selling the car, paying off the loan immediately, buying a $2,500 Buick that will run solid for a few years, and then pay down the credit card aggressively.

I was nearly laughed off the page!

The author . . . → Read More: Would You Sell Your Car to Get Out of Debt?

How to Save Money in a Big City

Living in a major city comes with its own set of money-saving challenges. You may need to spend more on transportation, either because you’re stuck in traffic (consuming gas) or because you need to take lots of subway rides. You might pay higher prices for babysitters, groceries, clothes and toiletries. And your rent or mortgage might be a lot higher.

How can you save money when you live in a large city? Here are a few tips.

#1: Plan Ahead

It’s easy to jump into a taxicab when you’re running late and you’re not entirely sure abut the directions. But a little planning can help you save a lot of money.

Give yourself plenty of time to get from one destination to the next. Study where you’re heading on a map, or use a route-planning app. The less rushed you are, the higher the chance that you’ll opt . . . → Read More: How to Save Money in a Big City

Should You Sell Your Car to Get Out of Debt?

find a severely discounted vehicle

Are you seriously thinking about getting out of debt? Have you ever wondered if selling your car is a good idea to accelerate your debt payoff? This is a question that I have received a lot lately, so let’s dive in!

Two Reasons for Selling the Car

When you break it down, there are really two scenarios when you consider selling your car. For some of you, your car is a pretty good chunk of your debt, and if you were able to sell it, then your large debt amount would be reduced considerably. For the rest of you, your car is completely paid off and you are considering selling it because it would earn you a chunk of money that you could then put toward your credit card or student loan debt.

Consider These Questions Before Selling Your Car

Before you put your car up for sale, . . . → Read More: Should You Sell Your Car to Get Out of Debt?

10 Reasons Why Being in Debt Stinks

Being in debt … well, it kinda stinks. Actually, it really stinks. Big-time. I’m not talking about a reasonable mortgage debt, or a $200 monthly car payment. I’m talking about high-interest, huge-balance, keeps-you-awake-at-night levels of debt. The scary kind of debt. The kind you should get rid of as quickly as possible.

We often hear tips, tactics or other pieces of advice about how to climb out of debt. But let’s take a step back, for a moment, to discuss why you should want to get rid of your debt in the first place. Here are 10 reasons why being in debt stinks.

#1: You become stuck in jobs you hate. Debt creates this whole new dynamic where you are forced to work at jobs you hate, doing things you don’t want to do. For some, that means being a janitor. For others, that means working in cubicle.

. . . → Read More: 10 Reasons Why Being in Debt Stinks

Why Should You Care About Getting Out of Debt?

hate debt

Most of the time I’m writing on this blog to help people get out of debt and to save and invest money for their future. But, for those that stumble onto my site from another random site, perhaps they don’t even care that they have debt. After all, it’s incredibly normal to have debt today. In fact, I have realized over the years that I am the weird one that is actively trying to get rid of all my debt, including my house mortgage (by next year). So yeah, I guess I’m a little crazy, but why do I care about getting out of debt, and why should you? I have 5 pretty solid reasons why you might want to ditch your debt and be a crazy person like me.

Why Get Out of Debt?

1) It’s weighing you down emotionally

For those of you that step . . . → Read More: Why Should You Care About Getting Out of Debt?

How to Get Out of Debt and Grow Rich

benefits of failing - LifeAndMyFinances

I was in your shoes. I was in debt to a tune of $20,000, twice, and both times I have gotten out of it and I am now in a position to make money with my money, just like the rich do. I desperately want you to do the same.

The Seven Steps to Becoming Wealthy

When I was 24 years old, I had $20,000 in student loans to pay off. Cash flow was tight and it didn’t seem like I had much hope of paying it off quickly, and then I received Dave Ramsey’s DVD series. To be honest, I was never a big Dave Ramsey fan. He always seemed to state the obvious and didn’t have anything original to say. However, stating the obvious was exactly what I needed, and maybe it’s what you need as well. Here are Dave’s 7 steps to get out of . . . → Read More: How to Get Out of Debt and Grow Rich

5 Reasons You Should Get Out of Debt

Have you thought about getting out of debt, but find very few reasons to actually do so? After all, getting out of debt would most likely mean selling the majority of your stuff. That doesn’t sound very fun does it? According to my research though, you’ll actually be happier without debt, and just to be thorough, I’ve got five main reasons you should get out of debt.

1) Avoid Those Interest Payments

Let’s use your house as an example. Let’s say you need to take out a $100,000 loan from the bank to make the purchase. If you decide to pay the minimum amount for the full 30 year term, guess how much you would actually pay for that loan? Drumroll……..$240,000!! And that’s with using a fairly low interest rate of 4.6%! What if you could pay that debt down after just a few years rather than 30. . . . → Read More: 5 Reasons You Should Get Out of Debt