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We’re SO EXCITED you’ve decided to read more about our Financial Freedom Plan! There are so many factors that go into becoming financially free, and we’ve outlined this process into seven simple steps! Also, we feel that you shouldn’t have to pay to have the tools you need to get out of debt! Let me start with our own personal situation. While my husband and I have accrued some debt because of sixteen years of infertility and treatments, we have no credit card debt. We do not believe in carrying a credit on our credit cards, and feel that is “bad debt” in a sense. There are some forms of debt that can actually help a person meet a goal, such as a mortgage or student loan. However, all debt makes you a servant to the lender. Therefore, our goal is to become completely debt free.
We are currently following the same plan that we’ve shared with you for FREE to get out of our own debt as well. We feel that others shouldn’t have to pay to become debt free, and want our readers to have the tools they need to sort through the debt process and develop a repayment plan. Check out our free resources below, and make sure to let us know by joining ourDEBT FREE LIVING Facebook Group!We are just getting started with this, but would love to have others join us in this journey!
We are also offering FREE debt reduction accountability sessions (either one-on-one or in a group). If you are interested, email me at steph@debtfreespending.com.
*PLEASE NOTE: We are NOT financial counselors, but we are able to offer accountability by asking you the questions you need to become debt free!
You can also download the plan in Word or PDF!
DebtFreeSpending Financial Freedom Plan (PDF)
DebtFreeSpending Financial Freedom Plan (Word)
1. Complete the Debt Repayment Plan printable! You will begin to work through how much you owe, and develop a repayment plan. This will help you get on track to reaching your final destination of becoming debt free!
2. Set up a monthly budget (Check out our printable monthly budget)! Once you know what you are spending, you will have to make some decisions about how you are spending your money. You may need to make some tough decisions, like not having cable, or getting rid of your landline and going only with your cell phone, etc.). Your monthly budget is your plan for how you are going to reach financial freedom!
3. Save $1,500. Do this before you start paying any extra on your debts, because if you don’t have at least some savings, you will just keep getting back into debt. Continue to save between $50-$200 per month into this savings account. Once you’ve reached $1,500, then you can begin adding extra payments to your debt. If you have to dip into this fund, stop paying extra on your debt and start saving again until you reach $1,500.
4. Begin paying extra towards your debt. Start with your lowest balance first and continue to pay extra on that debt until it is completely paid off. Then, use that extra payment to begin paying extra towards the next debt in the Debt Repayment Plan. Continue doing this until you have paid off all debts, but do not include your mortgage in this list of debts.
5. Save 3-6 months living expenses. This is a safety net in case you lose your job or become ill. Multiply your net income by 3 or 6 and this is the range of money you need to save. Once you’ve saved your extra income, you can start paying off your mortgage or saving for a down payment on a house.
6. Pay extra on mortage/Save for a down payment. Now you can start focusing on paying off your mortgage (Or saving for a house). Once you have completed paying off your mortgage, you can start investing your money!
7. Invest your money and GIVE!!! 🙂
8. Join our DEBT FREE LIVING Facebook Group!or GO PRO with our DEBT REDUCTION SYSTEM!
Check out our other Finance Articles on how to reach your financial goals!
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***PLEASE NOTE: We blog DAILY about ways to save everyday! Please check back daily, because our main goal is to save our readers money!
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Repaying Student Loans
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