Hello, beautiful people from across the lands! Starting your debt freedom journey may be intimidating and overwhelming to think of. A journey of 1,000 miles starts with one step. Beginning a debt freedom journey does not have to be stressful or complicated. In this post, we are going to start with 5 must-ask questions to help provide a clear guide on starting your debt freedom journey before you actually start. Let’s get into it!
How much do I owe?
Knowing your numbers is so important on your debt freedom journey. Oftentimes the avoidance behavior kicks in where we do not even want to look. In order to start and set a plan, you have to know how much you owe. Check your credit report which right now you can do weekly up until April of 2021. Jot down every debt owed done to the cent!
Do I have a budget?
Having a budget is so crucial and fundamental in so many ways. If you have been reading this blog long enough you know I have preached this over and over again. Having a budget put in place allows you to know what’s coming in and what’s going out. On a debt freedom journey, the budget lets you know if there is any money left over to throw extra at your debt. Which leads to the next questions
How much money is left over after paying myself (savings) and expenses?
After everything is taken care of in the budget, what is leftover? That leftover number maybe $20 or $200. Without a budget, you will never know. Knowing this number will help you create a timeline on how long it may take you to accomplish your goals. If you want to speed up this process, it’s time to ask the next question
How much spare time do I have to make extra money?
To really get the ball rolling on this debt freedom journey it’s time to make more money. Take the time to audit your time. How much time and what days works best for you to dedicate to a side hustle? How much extra money do you want to make in a week or a month? Answering these questions is the beginning of getting a solid plan together for extra cash.
When do I want to pay this debt off?
Setting a payoff date helps create a timeline and estimation on how much you will need to pay to reach the desired destination of debt freedom. Do not get discouraged with the amount. Just know you can and will do this! Setting the debt helps create a clearer path on how to execute your goal.
Conclusion
Starting a debt freedom journey is not something that many are eager to start. However, you are different. How do I know that? Because you’re reading this blog now. You want better for your finances and your future. Know that you can do it! Starting with these five questions will help you begin to map out your game plan.
- How much do I owe?
- Do I have a budget?
- How much money is left over after paying myself (savings) and expenses?
- How much spare time do I have to make extra money?
- When do I want to pay this debt off?
No matter how large the amount walk yourself through this process no longer letter the numbers keep you stagnant.
Until next time dream, believe, and achieve.
