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
justdoit says
12 years ago, we bought our first home.
it was a miniscule apartment with one bedroom.
we hunkered down and paid the mortgage off entirely in 24 months, on two very modest wages.
we basically bought nothing but food and petrol for two years….no dining out, no travel, no new clothes.
any extra income from anywhere was immediately put into the mortgage account.
the apartment was very tiny, so it was inexpensive to light it and cool it….even so, we used fans rather than aircon.
so, we did it very tough for two years….then we started a business from home.
we had the luxury of riding out the slow times, because we had no pressure with a rent or mortgage payment.
our business grew, so we bought more real estate to accomodate it.
we started to pay off the second mortgage exactly as we had paid off the first.
after a couple of years, we sold everything and purchased in a different area….an acreage, with a really ugly shed on it.
by the time the dust settled, we were mortgage-free again. (we never have any othe kind of debt either).
for the past five years we have:
travelled for three months a year
given freely to our favourite charities
employed a weekly cleaner and gardener
renovated the ugly shed into a quirky residence with beautiful views and lots of eco-sustainable features
we don’t juggle bills or save up for things….we live very simply and mostly frugally, and we work hard in a business we love
we’ve always driven really small economical cars that we pay cash for.
we don’t eat out unless we are travelling….we prefer cooking our own simple tasty food at home….and we grow what we can.
we have a stress-free lifestyle and we enjoy ourselves…..and i can date it all from paying off the initial mortgage so quickly.
at the time, it was certainly a struggle….but it only lasted for two years, and the benefits will last for the rest of our lives.
i would encourage anyone to buy a small place and pay it off as fast as they can…it is the start of real independence.
Gina Masters says
I can’t wait to be mortgage free as well! And I agree…a small place and get it paid off quickly! Great job!
Willow says
Excellent post! My daughter and her husband are loyally following Dave Ramsey’s advice after going through his progam with several friends. I loved that she told me, “Mom, you and Dad told us everything Dave says when we were growing up, so it was easier for us to get on board more quickly than some of our friends.”
Congrats to you! You’ll be debt free soon!
Gina Masters says
Thanks Willow! I’m so happy to hear your daughter and son-in-law are jumping on board with Dave – they won’t regret it!
Dr. Laura @ WhoIsLaura.com says
Josh and Gina!! I am so proud of you two! You are such a fantastic example, and you are so right…most of what it takes is simple, but it relies on YOU to put it into action! Great job both of you!
Dr. Laura
Gina Masters says
Laura,
Thanks for your friendship and encouragement over the years. When we’re finally DEBT FREE, you will be one of the first friends we call to celebrate with!
Jo@simplybeingmum says
If anyone’s in any doubt as to whether these tips work – don’t be. Some of the amounts may seem small but they add up. Every penny counts. It’s not just the haircut, it’s the products you buy after the haircut. It’s not just the latte you buy, but the brownie or muffin… every time you make a purchase you open yourself up to further purchases. The only area where I have a slightly different take is regard groceries. I don’t bulk buy or specifically go for sale items, rather I menu plan and only buy exactly what I need for the week – this reduces waste also. It’s becoming such an obsession I have managed to reduce our weekly grocery spend most weeks by 50%.
Gina Masters says
Fabulous! I love that you are able to reduce your weekly grocery budget by such a large amount! You’re right – it DOES add up!
Jen Strange says
“every time you make a purchase you open yourself up to further purchases”
Wow, that’s profound. So, so true. Am going to remember that.
Jo@simplybeingmum says
Cheers Jen!
Helen says
Regarding #32, does anyone remember reading Julia Cameron’s Money Drunk Money Sober? It spelled out many cause and effect scenarios.
Cathy | treatment Talk says
Wonderful post about saving money and getting out of debt. I agree that giving is good for the soul, and keeps you in a positive frame of mind. Thanks for sharing
Daniel M. Wood says
Great article!
A lot of people have problems getting out of debt, I have been in debt myself and it isn’t a nice place to be.
This was some great advice for lowering your costs and I added that I need to get some bonus credit cards so that I can save money on gas and groceries.
Thanks!
Gene says
Love #33 and the paragraph explaining it.
Great point!
Christa says
We’re just starting our snowball, and we keep our belts pretty tight! But we have in the past, too. Just did the usual stuff: student loans, car payment (gone), etc. We’re pretty psyched to be following the TMM!
Gina Masters says
Love TMM! I’ve also had the pleasure of giving the TMM book to dear friends of mine upon hearing about thier troubles…its always been a welcomed gift and to pass the blessing on has been a great privilege. Keep up the good work Christa!
Clare says
Awesome awesome post and just what I needed to hear today. Just finished a prayer session asking the Lord for advice on managing our finances (no debt except mortgage, but it’s big enough and we are on a tight budget as it is important to us to have me at home with the kids) and to keep strengthening our marriage. I was quite puzzled when I strongly heard ‘check your email’ but after finding this post and some gorgeous pics of my mum’s cousin celebrating her 50th wedding anniversary in Australia I can see why. Thank you for your courage in guest-posting this and for letting God use you in this way. God bless :)
Gina Masters says
Clare,
My prayer in doing this was to read messages exactly like yours! Thank YOU for seeking out the Lord in your finances and for your encouragement, it means alot. This journey towards being debt free has strengthened our marriage like you wouldn’t believe! Keep praying those prayers and believing God for His provision…Honor him with your money and you will see his mighty hand at work!
Blessings to you and your family!