James and I have set a BIG financial goal for 2016 to pay off $40,000 of our home loan debt. We are setting such a big goal because we are eager to start a family, but want the security of being debt-free and able to live comfortably off one income. Making this goal a reality will require dedication and creativity! As we re-evaluate our budget for the new year, here are 7 Debt-Free “Resolutions” for 2016 we will use to help us acheive our financial goals!
1. We will live below our means.
My husband and I both work full time jobs and earn average incomes, but we have chosen to live on less than half of what we make. My smaller income will be dedicated to covering our living expenses, and we will budget accordingly. We won’t “depend” on his income, and will use it only for building our savings and paying off debt.
2. We will save money on essentials.
To make living off one income more comfortable, we will coupon for our household essentials, buy all our groceries at Aldi and reduce our monthly bills. Doing this will allow us to put some of MY income towards paying off debt as well! I’ll have more posts about how we do this coming soon!
3. We will cut unnecessary spending.
We will scrutinize our spending and separate our “wants” from our “needs”. To quote Dave Ramsey “You can’t get out of debt while keeping the same lifestyle that got your there. Cut out everything except the basics.”
4. We will use a financial planner.
You can find a free printable for the one we use by clicking here. We will use it to track our bills, budget our spending, and keep ourselves accountable to our goals for each month.
5. We will give every dollar a job.
Dave Ramsey wisely said “You’ve got to tell your money what to do or it will leave.” This concept is as basic as having a plan for exactly where every dollar of your paycheck will go, but for some reason it is so SO hard for me to do. This is something that we will learn this year so we can take full control of our finances and set ourselves up for financial success!
6. We will put all extra income towards our debt.
This includes bonuses, tax returns, overtime pay, and income from the blog or other side jobs. I also have the option to take a payout instead of going on two weeks of paid vacation so we will be dedicating that to our home loan debt as well.
7. We will find a way to visually track our progress.
It’s just so much easier to stay motivated when you can actually SEE your progress, and have a few rewards planned for yourself along the way. We haven’t settled on just how we will do this yet, but when we do I’ll make sure we let you know! ;D
Do you have any tips that have helped you save money and achieve your financial goals? If so we would love to hear them! Just leave a comment below to share!