It has been weeks since I put out an extreme debt elimination tip. Here is the tip for this week. Look throught your debts OR instalment payments [that have a payoff balance, like a gym membership]. Find one or two that are closest to being paid off. Determine how quickly you can get it paid off if you cut back on utilities, eating out, and splurges. Then see how much “hidden money” you could find by using some of the saving tips we talked about on Monday.

Use these two things to attack the debt.

Now, usually people tell you to go after the one with the highest interest rate or something like that BUT what I’ve learned is ANY reduction in cost can inspire you to keep going. So if you owe $200 on your gym membership and you’re able to skip eating out for a month, round up all purchases and give up a couple of EXTRAS in order to pay that thing off in a month who CARES if it was only $30-$40/month. That is money that you aren’t spending each month that can NOW immediately go towards paying down one of those bigger bills.

So find something with a small balance, maybe only a couple hundred dollars, and create a plan to have it GONE in the next 4-6 weeks. Use the extra you were paying on the instalment to pay the next biggest one [maybe a few hundred].  Then reward youself with a nice dinner out when both are gone. Remember, the balanced life isn’t all about sacrifice-it is also about rewards.

Maybe even paying your car insurance in full. My car insurance company charges a $3.50/month finance fee if I want to pay instalments. That is $35/year I’d save if I was simply able to pay it twice a year when the bill comes!

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Tiffany Colter is a passionate freelance writer whose credits include Today’s Christian, Charisma Magazine, Toledo Business Journal, and the Afictionado E-zine. Tenacious in her approach not only to create a great story, but also to mentor other writers, Tiffany can always be found in the presence of a book or laptop. A former world traveler who is fluent in three languages, she strives to reach those who are hurting around her.     She enjoys helping others build a strong business and writes a daily marketing blog for writers called the Writing Career Coach and a common-sense money management site, TheBalancedLife.com. Tiffany lives outside Toledo, OH with her husband, a recent cancer survivor, and their four girls.

Balance, Not Deprivation is a section designed for any person. It is about recognizing the danger of being TOO much of a saver. Wow, did I just say that? Yes. As a former tightwad I recognize that aggressive saving isn’t about fiscal responsibility, it’s about fear. This section is about how to enjoy small indulgences for a reasonable price.

What keeps you motivated? For some people it is the satisfaction of a growing bank account. Other people need to be able to have a small splurge when they’ve kept on budget. For kids it’s good to have a small reward, even pop corn and a movie together. The point is to have something to celebrate your successes so you don’t get burned out in the pursuit.

Set a goal, find a motivation and go for it.

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Bio
Tiffany Colter is a passionate freelance writer whose credits include Today’s Christian, Charisma Magazine, Toledo Business Journal, and the Afictionado E-zine. Tenacious in her approach not only to create a great story, but also to mentor other writers, Tiffany can always be found in the presence of a book or laptop. A former world traveler who is fluent in three languages, she strives to reach those who are hurting around her.     She enjoys helping others build a strong business and writes a daily marketing blog for writers called the Writing Career Coach and a common-sense money management site, TheBalancedLife.com. Tiffany lives outside Toledo, OH with her husband, a recent cancer survivor, and their four girls.