Marriage Alive Digest 10 Part Series on “Leading A Debt Free Life & Marriage” Part 1 (Continued) Has Debt Become Your Remedy To Your Problems?

Marriage Alive Digest 10 Part Series on

“Leading A Debt Free Life & Marriage”

Part 1 (Continued)

Has Debt Become Your Remedy To Your Problems?

Depending on your financial standing, the step-by-step on this series would help you reduce or eliminate your consumer debts.

1.       Are You Spending More Than You Earn?

If you belong to the category of over-spenders, the first thing you need to do is align your spending with your income, which means that you start living within the confines or limitations of what you earn.

The way to achieve handling over-spending is to employ the “envelope budgeting system”. Here you create a monthly plan, a budget that would apportion a precise amount of money to every category where you spend money. Your plan should certainly not exceed 100% of your income, and then make a 3 month pledge to stick to that plan.

Once you start living within your means, this prepares you for the next step on the debt elimination drive!

2.       At Least 5% Reduction in Spending

Eliminating cost from your budget may seem ordinary; but you can make it an exciting experience as well!

Imagine if you and your spouse begin a contest of finding 5% to cut in your daily budget list. Yes, some things like your mortgage payment or rent may not fall into this category; but a whole lot of what you spend money on will definitely will.

Let’s say you spend N79,000 on foodstuff or provisions every month. A cutting of 5% would mean about N4,000 a month. Perhaps you can buy some items in bulk and reduce your overall spending. The bottom-line is, look for what you can cut.

When couples seek to find cost reductions by percentage, it becomes fun, a game and a non-threatening way to eliminate expenses. And at the end of it, whoever wins can be treated to something special. Yet, no one truly loses!

Let’s assume you are able to reduce say, N2,500 out of just 5 spending category. That would automatically free about N12,500 every month which could be channeled towards paying your debt or building your emergency savings fund!

  

3.       You Must Have a Plan

Thirdly and lastly, once you have gotten used to living on your current income and you have succeed in reducing a certain percentage out of your spending, your last step would be  to create your debt elimination plan or roadmap.

You need to itemize or list all of your consumer debts, the balance you owe, and the expected payoff date. This list should be placed where you and your spouse can see it easily, and every time you pay off a debt, tick it off and celebrate it.

After paying your debt, take that payment amount and roll it over to your next debt in line and watch the balance melt away. Keep doing this until you finish paying off all of your debts.

Depending on your financial need, consider using a portion of any “extra cash” towards your debt repayment. If you stick with the plan, you’ll become debt-free, and free your family for a great financial future!

Considering the current economic situation, there is nothing more important than ensuring that you and your family are free from debt and prepared for whatever the future holds!