Lessons Learned - Getting Out of Debt

Many years ago, John and I got ourselves into debt. The internet was not a thing back then, so for help, we went to the local consumer credit counseling service.

It was brutal! They were tough!

It took a few years to get out of trouble and it took a few more years to get good at using their advice. They taught us a lot of great things and to this day, this experience changed our lives for the better.

Looking back, here are some things I still remember and try to live by:

• Track your spending.
• You can’t know what part of your income is needed to pay bills versus what part of your income can be considered disposable.
• Embrace budgeting.
• Make a game of it, “can I meet my budget”. It gets easier. It also gets more exciting the more times you meet or exceed your budget goals. 
• Think of it like Candy Crush, the more you match things, the more fun it becomes and the larger prizes you obtain.
• Remember to budget for future events (trips, larger purchases, home improvements, etc).  {If you are planning a trip, remember to check out my blog on “extra vacation cash - made easy”.}
• Pay yourself.
• Put a little money each month into a retirement or investment fund; your future self will thank you.
• Learn not to waste money on the extras.
• I love a good coffee drink or blizzard as much as anyone, but I learned that I don’t need one daily or weekly. I treat myself only every month or so. 
• Not only do I save a bunch of money, but I enjoy the treat even more when I allow myself the indulgence.
• It is okay to buy second hand goods.
• As many of you know, my house is decorated with garage sale, flea market and Craigslist finds. I almost never pay retail for something new. My house won’t make the cover of decorators digest, but it is warm and inviting. My friends and family know if they spill or break something, there is a 99 percent chance I didn’t pay much for it and I will enjoy searching sales to replace it.

The best thing we learned was:

Material things don’t bring happiness.

• If you see a home decoration, clothing item or gadget you just “have to have”... think about it honestly. Do you have the disposable income to purchase this? Do you really need it to make you happy? Could you find it second hand? Could you buy a lower-grade/priced item? 
• We try to wait a week or two and then revisit the purchase we want to make. If it still seems like a good purchase and we have the funds, we purchase it.  Most times, we realized it was just a spur of the moment “need” and it passed and we can use the money for something else.