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How To Destroy Your Debt Without Sacrificing Your Life

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a man pulls out his empty pockets because he thinks erroneously that if you want to pay off debts or stick to a budget means giving up all your fun

Do you need help with creating a budget that sticks? Check out my new course, Budget to Bank, designed specifically to help you create a budget that helps you reach your goals without draining the life out of your lifestyle.

Today’s post is a guest post from CrunchyHippieLife reader Andy Masaki. Andy is a blogger at Penny Less Dad and financial writer associated with the Oak View Law Group. He is a debt expert and a member of several online forums where he shares his advice as well as tips to lead a financially independent life.

Not many can pay off debts easily, and hold the tenacity to keep up with the debt payments as time goes by.

But, you can still manage to pay off your debts, and keep your lifestyle intact. 
This may not be as ideal and absolute, as it stands, but yes you can somehow keep up with the current lifestyle and become debt free.




However, there are always a factor of ‘trial and error’ in finances, and you need to abide by it. Thus, keeping this post crisp and meaningful, I am putting down some ways you can become debt free, while keeping your lifestyle at the same level.

Work on how much you spend each month:

Your lifestyle is determined by your total expense for a month, in contrast to your total income.



A balanced lifestyle gives equal importance to spending and saving. A reckless lifestyle on the other hand only focuses on excessive spending, with little to no priority given to savings and debt payments.

This post by no means encourages you to maintain a ‘no limit splurging’ lifestyle. If you believe that each month your spending figures are exceeding your income, then you should surely try to downsize a bit.

When I am saying that you can keep your lifestyle intact while paying off debts, I am pointing out to a balanced or affordable lifestyle. 
I am not asking you to give up the daily bread and milk. I am just influencing you to cut down on shopping sprees, movie tickets, booze, unnecessary gas and energy costs, and all such discretionary expenses.

Therefore, make a long list and write down all the expenses you usually undertake a month. Now divide these expenses into two parts. One is necessary expenses, and the other is discretionary expenses. To keep in mind you are not factoring debt payments as an expense right now. Neither should you be focused on savings, as of now.

Just write down the general expenses, and prioritize them into two parts, just as I have said above.

Budget your expenses as per your income:

Big industries and corporations use a Zero Based Budget, to balance out gross income and gross expense. 

When total income minus total expense equals to zero, a company witnesses a no profit and no loss situation. The same is pretty much applied to personal finances as well.

If your total expense (general expenditures), equals your total income, then you have to cut down on expenses, those you can do without. 
Some easy suggestions could be saving money on groceries, or using your legs and public transport instead of taking your own vehicle out every time, and all.

Your aim should be to strip down expenses and make room for debt payments. This debt payment amount should be at least equal to the minimum required amount.

Once you are done scraping out the debt payment amount from your monthly income, you will then need to search for some good debt payoff options.

You can use debt avalanche:

In this method, you will look to pay down the high interest rate debt first. Only, if you can, then make extra payments toward this debt, while maintaining the minimum on the other ones.

Once you have cleared this debt, you will be taking the payment amount you were making for this debt, and add it to the payment of the next high interest debt coming in line.

Assuming you have 2 debts, where their balances are as follows:
Debt 1: $500 (Int Rate- 6%), min payment- $100
Debt 2: $1000 (Int Rate- 4%), min payment- $50.

If you put extra money for Debt 1 (the highest interest rate debt), and make a payment of $200, then within 2 months you will clear this one. But to keep in mind, that you will still be making the $50 payment for Debt 2, along side the $200 payment for Debt 1.

Once you clear debt 1, you will be then making $250 payments for Debt 2. 

The Debt Avalanche method can only be used if you are having multiple debts. 

The best is obviously professional debt help:

No matter whatever we say, one of the best debt free tips is taking professional help for your debts.

If you are working with a debt relief company, then the financial advisors and agents over there, will help you to formulate a budget, organize your finances, and save money on your debt payments. 

One most relevant option is debt settlement, as you will be only making a lump sum one time payment for your debt, and get rid of it for good.

You also have Debt Consolidation for general unsecured debts, or Credit Card Balance Transfer for huge credit card debts, and many other options, about which you will get a briefing after consulting a debt relief company.

When the priority is to pay off debts, then the focus should not be completely on keeping the lifestyle intact. Some sacrifices here and there, are mandatory.

But still, if you can follow the above points, then you may not have to give up everything for paying off your debts.

Hope, you take all the suitable measures and become debt free soon.

Do you need help with creating a budget that sticks? Check out my new course, Budget to Bank, designed specifically to help you create a budget that helps you reach your goals without draining the life out of your lifestyle.

Thanks for sharing!

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