Eliminate Debt and Become a Financial Wizard

Got debt? 

Well, you’re not alone. Borrowing has never been easier.

And spending is at an all-time high.

We don’t know how to budget. Buy only what we need. Or how to invest for the long term.

So we end up in debt.

And the average American has a ton of debt.

It’s a major roadblock between you and your goals. But with some time, focus, and financial planning, you can get out of debt. And become a financial wizard.  

Because getting out of debt isn’t impossible. You can do it!

So… let’s go over a few things to help you get out of debt. And become a financial wizard.

How to Eliminate Debt & Become a Financial Wizard

To end the cycle of debt once and for all, you need to first learn how much debt you have.

Run the numbers and find exactly how much you owe other people. Then figure out how much money you have coming in and going out each month.

With these numbers in hand, it’s time to do some financial planning.

And set up your re-payment strategy.

Experts recommend creating a list or table. And then putting all of your debts in order from small to large.

That way you have a birds-eye view of the situation. Knowing and seeing what’s going on with your money is important.

It’ll help you better understand how you’re going to pay for shit now.

What it costs you to survive each month. And how to get rid of the debt you have in your life.

Because organization is THE first and most important step to getting out of debt and becoming a financial wizard.

9 Tips to Help You Get Out of Debt

1) Run The Numbers to Become a Financial Wizard

First of all, it is important to list all the debts accumulated so far as I stated above.

This is SUPER important so I want to touch on it again.

You need to know exactly how much is owed in total. See how this debt compromises your monthly income. And know how much being in debt is costing you each month in interest payments.

So list all of your debt in order.

The priority should be the accounts that have the highest interest rate, like credit cards.

Or the smallest balance(s) that you can pay off and get rid of really quick.

Login to your old and new accounts.

And if you have any doubts about the amount of the current debt pick up the phone. It’s time to make some calls.

Contact the companies with which you have debt with and confirm the data.

2) Set a Monthly Savings Target

After creating a strategy to pay off your easiest or most urgent debts, it’s time to save some money.

That way you won’t have to go back into debt because of an emergency.

And when you have your debt numbers written down. Ask yourself what can you live without?

What expenses can you cut to save yourself some money each month?

Because when you set aside at least a month’s expenses and bill money, the possibility of going deeper into debt goes down.

So, think of what costs you can cut or reduce from your budget.

And save that money until you have something to fall back on when things you didn’t plan for happen.

3) Exchange Expensive Debts For Cheaper Ones

After knowing the size of your debt. Saving some money for when shit hits the fan. And identifying what you have to pay back each month you can now do some research.

Look for a bank or company that offers better payment terms and transfer your bad, high-interest debt.

You need to find a way to settle the old debt you have that’s costing you a lot of money each month. And creates new agreements and payment plans that have lower interest rates.

Pretty much find a way to make paying back the debt you have cheaper. You want to find or create payment plans that fit your budget.

Reducing the interest rate you are currently paying is the way to go.

And before you make any big moves, do your research. Find out which companies offer the best interest rates. And know what you’re signing yourself up to.

You don’t want to make things worse and go deeper into debt.

4) Consume More Mindfully

It’s not about stopping or interrupting the purchase of items you like.

I’m not telling you to stop having fun, going out, or doing things.

The idea is to carefully check whether there is a real need to spend money. And buy certain things.

You should take a step back and become more mindful of your spending.

Question every purchase.

Become a financial wizard.

And balance what you want and need. Because when you do it makes getting out of debt and saving money a much easier task.

5) Track Your Spending to Become a Financial Wizard

All of these tips only work when you choose new spending habits.

This is not to say you should stop spending.

But make a commitment to get out of debt and create stricter financial goals with your money. So, track your consumption habits.

It’s very likely you’ll find some expenses that can be avoided as you work your way out of debt.

I’m sure you can live without a few of those monthly subscriptions you’ve got. Find a way to save by switching companies. Or even finding a cheaper grocery store or restaurant to buy food from.

At least until you’re not in debt anymore.

6) Seek More Knowledge About Financial Education

One of the main ways to get out of debt is to have the necessary knowledge to avoid it.

For this reason, it’s essential you learn. And figure out how you’ll get ahead financially.

Are you going to start a business, invest in real estate, stocks, or something else?

Figure out what works best for you. Make a plan, and learn. Because there’s a ton of different ways you can learn.

And it’s great that you’re here reading this.

But this shouldn’t be it. There are books, Podcasts, YouTube Channel(s), courses, audiobooks, and others that can teach you more.

7) Find a Way To Start Making Some Extra Money

If you’re in way more debt than you can handle or pay each month, you need to make more money.

Sometimes budgeting just isn’t enough.

You could have an income problem.

And making more or having a high income makes getting out of debt easier.

Plus you have options. You can get another job, switch jobs for a better-paying one, deliver food, walk dogs, flip things, or find something to sell online.

Just find something that’ll work for you until you have your debt under control.

8) Impose Limits On Leisure

Getting out of debt and becoming a financial wizard requires a lot of focus and discipline.

After all, saying no isn’t easy. But you can do it.

Spending money is a choice. And if you really want to get out of debt you’ll save your money and pay back those you owe.

Because spending and the temporary pleasure it might give you can represent a huge headache in the future.

So, limit your spending and find free and new ways to have some fun. This doesn’t mean you should give up your social life.

It’s all about balance. Just set a spending limit for each event.

9) Create a Big Ass Emergency Fund ASAP!!!

Unforeseen events can happen at any time.

And in these situations, that emergency fund you have set aside can save your ass. They’re a great way to avoid going into more and more bad debt.

It’s best to have an emergency fund of at least three months.

And always remember the bigger the reserve, the less chance you have of getting into bad debt.

The BIG Takeaway On Becoming a Financial Wizard

Hopefully, you have a better idea of what it’s going to take to get out of debt.

And become a financial wizard.

Just know these 9 tips don’t cover everything there is to dig yourself out. But if you want to be free from owing others money once and for all, you’ll make a plan and find a way.

And when you do, don’t stop there. It’s time to start investing afterward.

Getting out of debt and saving your money is just the beginning.

Using that money you were putting towards getting out of debt and investing it instead is the next big thing.

And the next step to becoming a financial wizard.