Episode #46- Getting out of Debt!
We have Michael Taylor from Householdbudgetcoach.com here to talk to us about how to get out of debt!
How did Michael and his wife pay off $34,000 in 21 months?
Michael grew up seeing his parents struggle financially. They were poor. He wanted to escape that struggle. That drive spilled into my adult life. But first he went to college and a job and liked the idea of having money. He had some student loans and also get married and go into some debt with cars and other things.
What are some key things to do to get out of debt.
- Money mindset change – Get over the status mindset. Internalize the mindset of living within your means.
- Communication – If you’re married, discuss your budget/spending at least weekly.
- Budgeted our spending ahead of time. This is like a revolving savings where you are able to plan ahead for things that you want to buy later, by saving for them today.
- Tracked every penny we spent –
- Amy (Michael’s wife) was surprised to learn how much they were spending on groceries!
- We had to be flexible – Adjustments are needed along the way. Nothing happens exactly the way you plan in life and that is okay. Just be willing to be flexible and make adjustments as you go.
- Delayed gratification – Put any extra money toward paying off debt. This will make a big impact. Especially if you pay off a debt and then use that money to go toward paying off your next debt.
- You can use money out of your savings to pay toward debt
- Use your tax returns to pay off debt, instead of buying a brand new big screen TV.
- Pull every lever you can find to attack your debt.
What are the differences in the way you think and feel since you paid off debt?
- There is so much stress put on the family due to financial problems. We didn’t have to worry about that as much after we got out of debt.
- We did still have internal struggles with the fact that we had more money to spend on things and we still needed to delay gratification and put money away so we could pay cash. Sometimes we feel like, “Why can’t we buy this thing? Haven’t we earned it?”
Personal Financial Coach-
Coaches can help you get through the process of managing your finances and help you along the way.
Coaches also help hold you accountable. It is easy to slip back into your old ways when no one is there to check in with.
Michael is working to help Foster Parents with financial struggles check his stuff out!
- Goal- Equip foster parents to be successful in their personal finances.
- Coming soon – An online community for foster parents.
- Peer Support
- Monthly group Q&A Calls and Workshops
Call to Action:
Michael is offering a Free Financial Workshop. If you’d like to join him and see what stuff he has and the things he is all about you can get notified when he is going to be offering that, which will be soon, by going HERE.
Thanks so much for listening. Stay tuned next week to hear more…
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Until next time!
Ben & Deb Pugh
The Foster Parents