Getting out of debt

[3Hotdogs]

8. Books: "Your Money Or Your Life" Dominquez

Dave Ramsey's books.

Then here's what I've got to say.

As suggested above, evaluate your present condition: Monthly income, minus fixed expenses. Fixed expenses include rent or mortgage. utilities, car insurance, medication, health insurance, transportation to work, clothing upkeep and NECESSARY replacement of clothing.

What is left over, is of course, discretionary expense money.

That includes Netflix, cable, movies, eating out, EXTRA clothing, car washes and on and on. List them. Which ones can you do without or less of?

Now, look at the remaining discretionary spending. Divide it by 30, 29 or 31, depending on month. That amount may be $10.00, $50.00 or whatever PER DAY. It is your true daily discretionary money. That is what you will work with.

Lets say, you have $10.00 per day of true discretion. At the end of EACH day, add up what you spend on that day. Put what ever amount is left over from the $10.00 in a drawer, envelope or whatever. Take out $10.00 more for tomorrow.

Build up the drawer money until it reaches $1,000. No matter how long that takes. That is your reserve emergency money. After you accumulate that money, you can begin putting the extra daily money towards debt reduction. Putting even a penny in the drawer is a reward that becomes addictive.

Yes, it will take time. Maybe you say to yourself, "At that rate, it will take X # of years to get out of debt." Well, where will you be in X years if you don't start now?

Me? I was $108,112. In debt three years ago. My debt is now down to $53,202. I will be debt free in 38 month.

If it is your goal, get serious about it and do it.