3 Basic Ways to Manage Your Money and Get Out of Debt

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I am nobody’s money management expert! However, I have experience being an excellent partner and team player with managing money. Together with my husband, Ejuan, we have succeeded in getting our finances in order. We have gone from having a whole mortgage worth of debt (with no house) and then some. Now, we’re one month shy of celebrating nine years of debt freedom. We paid off our mortgage two years ago, and we’re still thriving! Our success comes from having a budget and sticking to it.

If you fail to plan, you plan to fail.

Create a plan. You can’t just say you’re going to manage your money but fail to plan how. What are your goals and expectations for getting your money in order? What will be the result of you changing your spending habits? Ask yourself these questions, then devise your plan. If you need a boost to get started, I would highly recommend Dave’s book, The Total Money Makeover. He has other books, but it was the only one we used. We read it and began to apply the principles. It’s very straight forward.

Create a budget for your money.

You cannot expect to manage money if you don’t have a budget. This process is how you decide where your money goes. Every dollar counts when you are trying to pay off debt and build wealth. Now, if that’s not your plan, you may want to stop here. If you’re ready to break generational curses and leave a legacy of knowledge and wealth, let’s continue. Generate a budget via an online document, in a notebook, or wherever is comfortable and convenient for you.

Start by listing out your everyday bills and necessities. Next, add in those extra guilty pleasures like shopping, memberships, and subscriptions. Begin a process of elimination for those things you can do without while you work towards paying off debt. Once you have identified your wants from needs, it’s time to prioritize your splurging activities. Now that you know where every dollar is assigned, you need to keep each category organized. Buy a pack of plain white envelopes to separate your money by categories. This is how we started, and the method worked fine for us for YEARS! We later upgraded to Dave Ramsey’s envelope system. We have changed some categories, but we still use our envelope system today.

You must have self-control.

Discipline is mandatory! Once you’ve created your budget, you now have to stick to it. You can do this by practicing self-control. The same way you watch what you eat, you must have a balance with your money. Don’t change the rules when it’s convenient, and don’t make random or emotional purchases. Reference your budget throughout the month to make sure you remain consistent.

Are you ready to make a change in your finances?

Until next time, I’ll leave you with this. I guarantee if you follow these three basic ways to manage your money, you will see a difference. You can pay your debt off, and you can build wealth. No matter where you start, it’s a simple process that yields great results! Make a plan, create a budget, and have self-control. Follow these simple rules, and you will begin to see a positive change in your finances. Don’t believe me, then try it for yourself. In the words of our friend Dave, LIVE LIKE NO ONE ELSE SO LATER YOU CAN LIVE LIKE NO ONE ELSE!

8 thoughts on “3 Basic Ways to Manage Your Money and Get Out of Debt

  1. The self-control piece is key for me! I know my weakness is food so I’m trying my best to eat at home as much as possible!

    1. I totally understand because I loooove eating. We made sure to cook at home all the time during our debt-free process. Just remind yourself it’s only for a season. Once you reach your goal, grab a great meal and then budget eating out moving forward. Wishing you all the best!

  2. It’s such a catch 22 trying to find balance between spending and saving/clearing debt and you seem to have found the solution. Plan and be disciplined!

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