Categories
Make Money From Home

3 Rules that Kept Shame Out of My Spending While Paying Down Debt – NextAdvisor

Editorial IndependenceWe want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see Ho…….

We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money.

When people hear that I paid off $300,000 of debt in three years and now have a debt-free lifestyle, the most common misperception is that I must not spend a lot of money. They assume I live by the “rice and beans” philosophy, the one that shames you for eating out at restaurants and splurging on yourself.

In actuality, I love to spend money—not hoard it. I thoroughly enjoy buying name brand clothing, eating out at least twice a week, and traveling frequently. I am known to spend a pretty penny on K-Pop merchandise and live concerts. 

And while I was paying down $72,000 of student loans, I learned that if I completely deprived myself of everything I enjoyed spending my money on, staying on my debt-free journey was not going to last very long. Finding the balance between living your best life and paying down soul-sucking debt like student loans is personal, but these three spending rules helped avoid the spending shame spirals and encouraged me to pay down debt faster.

This is the second column of a 5-part series from Bernadette Joy. In “Mess to Million,” she shows that you don’t have to be perfect to get rich. Follow @nextadvisor on Instagram for updates and live Q&As with Bernadette.

Rule #1: Ask yourself, “This or that?”

“This or that” is the rule that I credit most for helping me pay down $72,000 of student loans in less than a year after graduation. In order to implement this or that, you must define what “this” is, and what “that” is. “This” refers to the thing that you really want to buy now.

“That” refers to the larger money goal you are working towards. “That” could be paying down your debt like student loans, credit cards, a car note, or personal loans. If you’re not focused on paying down debt, “that” could be working towards your investing goals or purchasing your next home. 

When you find yourself in a spending decision, you must ask yourself: do you want to buy this item now, or do you want that bigger goal more? This or that?

It sounds simple, but there are two tricks that have to happen for this rule to help you pay down debt. The first trick is that you actually have to …….

Source: https://time.com/nextadvisor/financial-independence/bernadette-3-rules/

Leave a Reply

Your email address will not be published.