Editor’s Note: When I heard that my friends Gina and Josh Masters had recently paid off $66,000 in debt and had made a list of the 33 lifestyle changes they had incorporated to accomplish it, I asked if I could use it as a guest post to teach others how to get out of debt. They humbly agreed. And this is the result:
“Live like no one else now… so that you can live like no one else later!” – Dave Ramsey
Three years ago, my husband and I found ourselves drowning in debt – $80,000.00 to be exact (and that’s not even counting the mortgage). Around that time, coincidentally, our church began offering a financial program called Dave Ramsey’s Financial Peace University. We spent the last $100 from that pay period to sign up. And the rest, they say, is history (or at least, most of our debt is now history).
As I write this, over the past three years, we have paid off $66,000.00 in personal debt. No magic, no quick fixes, no debt consolidation, or bankruptcy filing. Just persistent sacrifice. We have saved ourselves from financial destitution by making a number of simple, small changes in our lives that led to us getting out of debt.
Recently, my husband and I sat down to make a list of every change we had made hoping that it would encourage others. When we finished, we reviewed the list and were surprised at how simple it looked. Yet, all of these ideas—put into practice over a period of time—have nearly completely got us out of debt.
They are tried and true. And best of all, simple enough for anyone.
33 Proven Ideas to Getting Out of Debt:
- Re-shop auto, home, and life insurance to see if you can bring down your payments.
- Downgrade your home television package/services, or get rid of it entirely.
- Disconnect your home phone (for sure). And double-check the rate on your cell plan for a better deal if it’s been awhile since you checked.
- Buy and sell clothes at your local consignment or shop at Goodwill.
- Have a massive garage sale. (If you’d rather be out of debt than have an item, choose to sell it to help you get you there.)
- Advertise higher quality items on Craigslist, Facebook, or your local newspaper to get better prices.
- Focus on buying mostly sale items at grocery store or generic brands to reduce your cost.
- Use a grocery store awards program to earn money off gas.
- Cancel unnecessary expenses like magazine subscriptions, newspapers, manicures, pedicures etc. Anything that could be considered a “want” instead of a “need” should go until you are out of debt or greatly decrease your debt.
- Go to the matinee movies instead of paying full price (and skip the concessions).
- Or better yet, use at-home movie entertainment.
- Get temporary work or seasonal part time work to boost your income.
- Read books from the library.
- Buy your most expensive groceries in bulk at Costco: meats, breads, cheese, produce, paper products. Establish a monthly grocery budget for the additional needs at regular grocery stores.
- When eating out, skip the soft drinks and stick with water. Skip the extras too (dessert, etc.).
- When eating out, share a large entrée or have small appetizers instead of the costly meal.
- Plan your errands more efficiently to conserve gas.
- Find friends that you can trade services with…hair-cutting, handyman, photography, babysitting, pet-sitting.
- Give home-made gifts, baked goods, or service IOU’s rather than expensive presents.
- Boxed cereals are expensive; switch to oatmeal, eggs or fruit for more nutritional and financial bang.
- Call the utility companies and get on a budget plan to give you more consistency with expenses each month.
- Set a spending limit with family at Christmas and/or draw names.
- Use exercise videos, walking or hiking instead of paying for the gym.
- If your haircut is too expensive, find a less expensive stylist or see if your hairdresser will cut you a break on price temporarily—ours did.
- Say “no” to hosting and/or attending in-home parties where you feel pressure to purchase.
- Does your family live nearby? Once a week dinners with mom or dad saved us a meal out of our shopping budget. Additionally, it usually led to leftovers and our parents looked forward to our visit each week.
- Make your coffee at home instead of buying it each day.
- Pack your lunch—not once a week, but regularly.
- Make extra dinner servings on purpose to have leftovers for lunch.
- Our dentist advised us we could skip the fluoride treatments if we were using a daily dental rinse—which we did… and bought on sale.
- Program your thermostat for savings on heating/cooling when you’re not at home.
- Tempted by certain retail stores? While digging out of debt, avoid window shopping these places where you’ve failed to control your impulses before.
- Give**.
Many may say, “What? I need my manicure!” or “My kids will only eat box cereals!” But trust me. If you are serious about getting out of debt and changing your life, the only thing you need is a roof over your head, clothes on your back and gas to get to work to bust your way out of this.
Plus, take comfort in knowing that you don’t need to eliminate these things forever. Personally, I look forward to hiring back our housekeeper and treating myself to a few pedicures next summer. But until we are debt-free and have a fully-funded emergency fund, we’ll be focusing on using the dollars we bring into our home to set us up for a lifetime of success.
**Many wonder about Number 33 (Give) because it seems counter-intuitive to most of us. One thing we never stopped doing – even in the worst of times—was giving. We always gave money to our church, our favorite charities, and foundations that we believe in. It’s easy to say “I can’t give. It’s not in my budget.”
But if we’re looking for a lifetime of success and influence—not just the latest gadget or status symbol—how can we afford not to give? Giving reminds us that we can live for a purpose greater than this world and all the temporary treasures it offers.
It helps keep everything else in perspective. So pick and choose from our list above – do one or two or everything on the list to get yourself out of debt – but don’t leave out number 33. We can attest from firsthand experience, it will radically transform your life!
Image: The Cleveland Kid
Mike | Homeless On Wheels says
Despite the fact that I involuntarily scowl whenever when I see anything titled “X ways to ____” I took a peek anyway. Most of this I either already do or is not applicable to me. Still, it should be useful to some folks to see such a large collection of suggestions in one place.
Daniel Castanheira says
I got a debt on my hands lately! And for the first time I can feel that there’s no worst thing than have to be count with a piece of money to pay what I did not have the money to buy at the time. Is just stressful being work a all month to pay debt and more debt.
There are fine options on this list and all very easy to take step if u prefer a life without debt, now and in the future.
But more than that is solutions that should be used in a regularly basis. I will just print the 33 items and try to get a look everyday just to have present, special the 33.
Thanks for the post.
Gina Masters says
Daniel – I know how difficult and stressful it can be. Please DO print this list and take these small steps to help you out as you work hard to pay off your debt. You are right – these are also solutions that can be used regularly, even after your debt is gone. Don’t give up – you can do it! I will be praying for you and all the others on this blog who are struggling with the stress of debt.
Tiffany says
Great advice! We do many of these things currently, not because we’re in debt, but because we like to be mindful of our spending and make sure we are living by our priorities. I agree that #33 is SO important. When you give to those less fortunate it helps you realize how MUCH you have. For me, that realization makes it so much easier to say no to my wants. I already have so much…why want for more?
Gina Masters says
Thanks for your positive feedback Tiffany. Priorities are SO important and isn’t it so much fun to be able to give? Be blessed and great job!
Josh Martin says
Great advice! All practical and doable — especially when you add the most important ingredient: discipline!
Gina Masters says
Absolutely! And discipline can be tough if you can’t grasp the bigger picture of the life you are trying to achieve for you and your loved ones. You are right – without discipline, these actions items can’t gain much traction!
Julie @ The Family CEO says
What a great reminder that little things can add up to something big. We’re nearing the end of our debt payoff journey and, like you, I’m ready to add some stuff back in. Great post!
Gina Masters says
Way to go Julie! I LOVE hearing stories of people on the journey to being debt free…its an encouragement to me to hear it.
Rhian says
Number 13 is a bit ethically dodgy – libraries are fine, but if you’re reading books at a bookshop, you should be buying them.
Gina Masters says
Rhian – I don’t think B&N leaves dozens of chairs and couches out in thier store and not expect people to be reading books? It’s marketing…whether you buy something now or later, if they’ve got you in there, they are pretty much banking on the fact that you will. And I have before, so I guess I don’t feel too conflicted about it.
Mike says
I agree with Rhian. I don’t think the intent of the chairs and couches was to have people read the entire book. Just for people to relax and read a little of the book as an enticement to buy.
CJ says
Agree. I thought this one was a bit iffy, and not something you should really be shouting about doing or advising others to do. They leave the chairs around so you can get a taste of a book in comfort so you can make an informed decision about whether to buy it. I thought the one about eating one meal a week at mum and dad’s a bit cynical too. Obviously it’s nice to spend time with family and its nice that they enjoy the visits, but it sounded a bit like taking advantage. Maybe it was just the way it was phrased.
Megan says
I can only speak for myself, but the weekly meals with family were already an established tradition. Only in hindsight did we realise the positive impact on the grocery budget! My mother in law feels such a sense of pride just knowing she is contributing– and not by writing a check, but by cooking for her kids. It is win-win. We in fact take turns, and they come to our place (half as often, but none the less) for meals as well. We have an agreement that we never bring anything to the others’ home. If I brought a bottle of wine or cheese, she would send it home with us! It has become a family joke… we just like to be generous with one another. It’s not about the cost of the meal, but the time spent together. It is somewhat of a sacrifice to travel (public transport) that far, in fact! You have to want to do it.
LD says
I just want to note that with ebooks, they have a thing in place on the Nook where you can read for x amount of time per day for free there.
Allison says
Great list, and I completely agree about #33. When things feel tightest is exactly the time to give at least a little bit. Nothing restores my sense of perspective, or keeps me focused on the things that are really important like a small donation to the homeless shelter, the children’s hospital, disaster recovery, domestic violence organizations, so many other worthy causes. Giving is important for so many reason — living your values, supporting your community etc. — but I also figure that it’s the best way to remember the difference between needs and wants, and keep myself on track with the other 32.
Gina Masters says
Keeping perspective is so important, at all times, and especially when trying to overcome obstacles like debt. Giving always restores mine and I’m glad it does the same for you – way to go!
Hal Richard says
If you don’t feel like you can give (#33), remember there is more than money that can be given. Most non-profits have work that needs doing that they don’t have payroll for. Most schools have reading programs, and eat with kids time, where community people can help mentor a child or two. Hospitals and shelters need people. The list is endle. Community projects can be as simple as picking up litter around your neighborhood. The object is to get outside of yourself and your problems.
Cat'sMeow says
Great list. We do many of these and we are not even in debt at all :) Little things do add up.
Megyn @ Minimalist Mommi says
Such a great list!! We can also attest that having meals with family is a HUGE help! Both sets of grandparents for the kiddos and even a set of great parents and an aunt (and lots of great aunts too) are very close. We eat at a relative’s house at least once a week. I’m unsure what I would do without their kindness in that arena! Not only does it help financially, but it reduces my stress about having to cater to four different diets. Plus you get to form stronger relationships, and that’s priceless!!
Amanda says
Great advice, I have to say that I’ve done all this stuff and more to cut back the last couple of years and live a more frugal lifestyle while trying to pay off debt and save and give more. All very practical and good tips here.