Have you ever done a Facebook cleanse, where you start removing these “friends” that you don’t talk to anymore or only met one time at a party? It’s an annual activity for me. Well this year, you need to remove someone from your life that definitely isn’t your friend. It’s name is debt. 2020 is the year to send debt packing! Debt isn’t always evil (if you’ve ever bought a house, you’ve gone into debt). But there is a lot of evil debt. Sometimes we just get in a bad habit of buying stuff. No matter how you’ve acquired your debt, it’s time to get free of it and kiss it goodbye. Here are a few ways you can kick the habit of building up debt…
Forget about that extra cash: It’s the first of the year, so there’s a chance you’re starting off the new year with a pay raise. If you’re finding yourself in this situation, do something with that extra cash before you can spend it on frivolous things. Set your budget as if you’re still making what you made last year. You can send that extra cash into your 401k or your emergency fund, or make a new savings account that will help you save for trips or fun things you’d normally put on a credit card. Even if you only got a small raise, it’ll add up over time.
Set goals and stick to them: Money goals are key to keeping your finances on track. Your budget is a big money goal. It shouldn’t be a difficult goal to accomplish. You know how much you make, so it’s time to map out your monthly bills and stick to your spending allowances. Automating bills and savings deposits is one way you can help yourself stay on track.
Let your credit card collect dust: Of all the cards in your wallet, your credit card should be the one you reach for least often. If you’d like to see your debt dwindle down to nothing, you’re going to have to start telling yourself no. It’s fun to buy stuff, but how often are those things really worth having more debt over?