Question

For those of you that are debt free (with the exception of a mortgage) what is the one piece of advice you could offer someone just starting out on this journey?  

Answer 1

Thank you for this question @ostensible! I am purchasing the online version of the Budget By Paycheck workout tonight and March 1 is my start! I’m excited and super nervous   

Comments

@crucible yay! I am so grateful for all of you and the shares. A person doesn’t feel so alone.  

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@dorina fantastic! I am going to work on the cash system! That will make a huge difference. So much more awareness

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@ball15416 absolutely! No more reckless spending! If you have questions, or want to chat with anyone please feel free to reach out! You’re never alone!  

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@dorina awe thank you! Yes, having a partner in crime would be fantastic!  

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@ball15416 absolutely! ESP. When no one else around you will understand. Don’t be a stranger!  

Answer 2

It all adds up. My husband laughed at me when I moved $9 to a debt payment. That $9 would have just been wasted but all of it adds up. Little progress is still progress. We now have $2, 400 to put on debt in February because of all of these little amounts and being intentional with every dollar. I am the spender and I wait 24 hours before I buy something. Most of the time I don’t end up buying it after waiting. I also looked over our bills and eliminated everything that wasn’t a necessity.  

Answer 3

Menu plan and limit eating out as much as possible. I was sick after seeing how much we were spending on food/eating out each month.  

Comments

@roby68 this is our biggest struggle! We’re trying though  

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@concessive you are not alone!  

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@roby68 omg! Yes. My family and I spent $200 on eating out one weekend. And lack of planning $800 was spent in a week on food products  

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@ball15416 we definitely had weeks like that as well. ‍♀️ It just makes your stomach turn when you realize what you could have done with that money! I'm happy to say that this week we paid off all our credit cards and are debt free!  I never want to go back!  

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@roby68 congrats on getting your CC’s paid off! Woohooo  

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@ball15416 thank you!  

Answer 4

Sit on purchase decisions for at least 24 hours. 30 days if you can.  

Answer 5

For me, it was saying no to myself for stuff I wanted and thought that I "deserved", but didn't. When I started my journey it was with the Dave Ramsey program (before TBM was around). I paid $12k in debt in 13 months. I was shocked because I realized that I would have wasted all of that $ on dumb crap I didn't NEED!  

Answer 6

Stop making excuses of why you can’t and think of ways of how you CAN! ❤️ Be realistic with yourself. If you can’t afford your lifestyle (house, car, etc) then make those tough decisions. Also, be responsible with spending on vacations or extras (go on vacation but don’t go to Hawaii if you can’t afford it because YOLO, etc).  

Answer 7

Give yourself some grace! You will screw up, there will be slip ups, so don’t beat yourself up when the mistakes happen. Take it as a learning lesson for the next paycheck (and don’t beat yourself up if a mistake happens even after a year of budgeting! )

Answer 8

Automate savings to an account that takes effort to retrieve the money. When you don't see it, you're less likely to spend it and can budget based on what's leftover.  

Answer 9

Don’t. Use. The credit cards!  

Answer 10

Use whatever tools you need to build wealth and credit. Credit cards aren’t inherently bad if used correctly. Know yourself and your limits and tweak the budget process to fit YOU and your impulses/habits.  

Comments

@pallaton I have charged everything on CCs for years without ever carrying over a balance. I just pay it off biweekly and in exchange, reap the cash back benefits. It’s all about control.  

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Same here! But doesn’t work for some people. I just don’t buy that it’s a scam, everything is a game and you have to know the rules. If only kids were taught this in school  

Answer 11

BIGGEST piece of advice! ONLY spend what you can AFFORD!  

Answer 12

Do not purchase anything if you can't pay cash for it right then and there. (In my opinion, exceptions are your house, a car, or your education. But I know that Miko tries not to finance even these things). This doesn't mean that you HAVE to pay for everything in cash -- I use credit cards all the time! (And I've never had any debt other than my mortgage! ). But if you can't afford to pay the full amount immediately upon purchase, don't buy it. I was raised to pay my credit card off in full each month, and I was in my 20s before I learned that some people only make minimum or partial payments on their credit card each month, lol. I've just always lived by the thought that if I don't have all the money for it right now, I shouldn't be buying it. This process has kept me on a great financial path for my entire adult life. Best of luck to you! You've come to the right place to start your journey!  

Answer 13

Live below your means. We are working to get to 70% of what we bring home and 30% put away. Move, second job, reduce expenses, etc.  

Answer 14

1- pay yourself first 2- plan and plan and keep planning into your future yet leave room for goals that are FUN 3- if you have children start super early to discuss money (mine were 2. 5 years of age when I started with a quarter for allowance). Keep trying to inspire them over and over to learn the value of choices. Their choices. 4- when you make a decision stick with it. 5- there is not script when it comes to real estate if you want to buy. We have a “starter” home which was not even 15% of our income and allowed us to do so much more and invest in other options 6- if you can put more down on your principal if you decide to buy 7- do not focus on lines of credits as options. Meaning that many will recommend it. Investigate what works for YOU 8- owning multiple properties is much easier than people want to have other believe 9- you can a LOT of your own renovations nowadays, but know when to hire professionals 10- big expensive weddings and expensive education degrees are more overrated than society wants to admit

Answer 15

Okay so after I wrote my answer I see you asked for one  My one would be to buy a home that that works for you (and your budget) long term - not what a realtor (or anyone else) tells you. If you plan with the future in mind plan what happens to your budget if you want one income but have a large mortgage for example.  

Answer 16

You have to get real with yourself about what you’re earning and what you need. Not want. Need. If you need more, you have to earn more. Simple as that. No excuses. Don’t compare yourself to others. Don’t spend money you don’t have or you will forever be paying now for things that have past. You’re giving up now any money you might have earned by next year, or five years from now. Which for me, makes working for that money so miserable and de-motivating. I’m def of the tough love school of thought, lol.  

Answer 17

Expense track for as long as you reasonably can so you can actually see where your money is going. I expense tracked for the previous year before beginning my budget and it REALLY illuminated how much I was wasting ($1000+/year on JUST COFFEE ). Good luck!  

Answer 18

Don’t give up! We had probably $80-$90K debt with CC, auto loans, student loans, fertility treatment costs, and we paid it off! Took a long time- but I only just started the TBM method and getting serious about this a year ago. I wish I would have known this stuff and made better decisions 20 years ago, so we could have paid that off a long time ago!  

Comments

@revenge WTG! That’s fantastic

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@ball15416 thank you! Such a good feeling and I love being able to use that money for better things, not stupid debt.  

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@revenge I can imagine! A beautiful thing  

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@revenge this is my husband’s and I exact position, amount and debts! We are slowly chipping away at it month by month

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@jovi55391 keep it up! I never ever thought we’d be able to do it, but it got easier and easier every time we’d pay something off. You got this!  

Answer 19

Focus on changing HABITS and your mindset. Getting out of debt is about numbers of course, but those numbers won't change if you don't change your habits. Identify the habits and behaviors that led you into debt and kept you in debt, and change them. For me, my student loan debt wasn't caused necessarily by bad habits but the habits of mindless shopping purchases of $20 or less and eating out were two of the top reasons I felt like I didn't have much at the end of the month to put extra towards my debt. I cut/minimized those activities and then I was able to find more ways to cut spending

Answer 20

Consistently show up in your finances. Don’t quit. One day you will wake up, in your paid off house, with no debt, and you will feel so much peace and joy. One step at a time.  

Answer 21

Emergency fund! 1000 per household, and after that, prefund sinking funds.  

Answer 22

Whether you have money or you live tight, track your expenses.  

Answer 23

**Don't give up! But also understand that when it comes to budgeting what works for others may not be what works best for you. Try a few different things if needed, until you figure it out. -Give cash only a try -If you can't afford it; don't buy/do it -Try doing no-spend months -Live with less and be okay with that -Don't try to keep up with the Jones! -Remove the temptations (IG/FB influencers, etc) -Save that $1k ER fund because things WILL come up - but again, when they do - DON'T GIVE UP.  

Answer 24

Small changes will result in big results. Don't try and cut your grocery bill by 75% right away. Make goals then make new ones.  

Answer 25

Know the difference between a “want” and a “need”. Turn off the instant gratification faucet. Learn to wait. Don’t give up. One foot in front of the other. Expect to work hard. Make finances a regular part of your day.  

Comments

@wardlaw at work when a member makes a request we are trained to think, "is this a need or a preference"?  

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@bestir Huebner interesting! I find the concept applies to so many things in life.  

Answer 26

It is not sacrifice, it is a strict life decision.  

Answer 27

Little by little, a little becomes a lot. Make a plan and stick to it. Don’t get bogged down in the details here. Follow the budget mom process and make it your own for what fits with your family.  

Answer 28

Breath, don’t expect the debt to be gone over night, there is a light at the end of the tunnel and. wait 6 months and see how far you have come. You will be amazed!  

Answer 29

Don't forget to save up for some fun things. If you deprive yourself for everything, you will more than likely spend more than if you had saved up for it. I add in $10/wk for a clothing fund. If there's something I really want, I need to make sure I have enough, if not, gotta wait!  

Answer 30

Great question  

Answer 31

There will be many many many times where you will want to quit the journey, feel hopeless, that you will never see the light at the end of the tunnel. Just remember your Why and don’t give up. Get on a plan, map things out, and the most important thing is that both partners are on board.  

Answer 32

Start a savings jar that you cannot see into.  

Answer 33

Definitely knowing the difference between a want and a need! Don’t compare yourself to others and then try to keep up and put on a show. Eat and drink BEFORE you leave the house! It stops you buying food out! Meal plan and portion plan!  

Answer 34

Patience grasshopper. you didn't get into debt in a day so don't expect to get out in a day. it is a process but if you start out paying smallest debt balances first, you will have little wins & that will help motivate you to go further. Good Luck!