Getting Out Of Debt

There are some people who are very good at making money but not maximizing it. Others, however, make next to nothing and spend like those who are very good at making money. Both of these situations cause people to remain stuck in debt.

When you are in debt and want to get out of it, being creative plays a big part in helping you achieve this goal.

Here are just 10 ways to help you get your finances back in order. Applying any one of these suggestions will help you save a lot of money in the long run.

What Are 10 Steps To Be Debt-Free?

The following list are 10 ways of getting out of debt for you to become financially free.

Although there are many others ways to reduce your debts, these are some easy ones to work towards. As simple as some of them are, they are effective and worth trying out.

1. Cut Cable TV

2. Cook Your Own Meals

3. Drive And Older Car

4. Rent Until You Can Own

5. Be Creative And Practical About Money

6. Stop Name Branding

7. Drink Water

8. Build A Vision

9. Electricity

10. Multi-Use Your Oven

1. Cut Off Your Cable

Life Without Cable Television

I have not had cable since 2008. Am I missing anything? Nope.

Even back then, there was so much information coming out on the internet that there was no time for watching T.V. From that point forward until today, in 2023, the amount of information on the internet is limitless and it keeps on growing.

There is no time to spend watching T.V. What is on there that is not on the internet? Although I can afford to pay for full cable service each month, it is not necessary because the internet is loaded with tons of information. I cannot keep up with what comes out so there is no time for cable.

Everyone at home can use the internet and not miss a thing. They can stream T.V. shows and movies and do so much more. This will save you on average $100.00 per month. You will save approximately $1200.00 every year. Since 2008 I have saved around $18,000.00 by not spending money on cable.

2. Cook Your Own Meals

Learning To Make Your Own Meals

Without a doubt, this is a must have skill in 2020 and Beyond. It is an asset. If you do not use this skill someone else will use it for you because you have to eat anyway. You will end up paying someone else your hard earned money at triple the cost. Therefore, make your own meals at home and you will be satisfied.

Buy my Authentic Homemade Vegetarian Cookbook to make your own delicious cost effective vegetarian meals at home. The meals are abundant and delicious. Thank you for your support.

This is going to make a huge difference with your food shopping bill.

3. Drive An Older Car Or Do No Own One

It Can Take You From Point A To Point B

If you are struggling and are in debt, why drive a brand new expensive car? You will struggle to get out of debt.

The car I drive is a 2012 average car. It drives beautifully, touch wood. I only pay for gas, insurance and maintenance because the car is paid off. You do not need a nice car, especially if you are struggling with debt.

Buying a car for practical purposes only is okay. If you earn a lot of passive income, then owning an expensive car is worth it and you deserve the luxury. However, you do not deserve a car that has a $30k loan on it or greater. Your car loan should be a maximum of $15,000. You do not need a fancy car when you are trying to get out of debt and be free because this expense will hold you back.

11 Steps to be Debt-Free

4. Rent Until You Can Own

Save Money By Renting

When you are renting, set up a 5–8 year plan to rent until you are ready to own. Most people will be able to have 20% down for a property within this timeframe. Start this process as soon as possible. Although if you can, live at home rent-free for as long as you can. If you leave home and need to rent, start shopping around for the best rentals possible, in the best location.

Getting Into A Large Loan

When you rent the only responsibility you have are your monthly bills and the rent but not the property taxes or maintenance. The owner manages that. Becoming an owner is harder work. Before you jump into home ownership, cushion yourself properly first. Walk into the deal with a significant amount down, at least 20%. This is best done through renting first.

You do not need to do the maintenance or pay the property taxes when you are a renter. This is an excellent way to build your finances. It allows you to keep up with your bills, save your money and enjoy going on vacations from time to time.

Depending on your standards and how you wish to live, rent before buying a property, especially if you are younger. If the rent prices are going higher, it means our dollar is not as strong as we are lead to believe. The cost of rent is not going to drop anytime soon. A $100 monthly difference in rent is a big deal, especially as the rental prices continue to rise.

5. Be Creative and Practical About Money

Be Creative With Your Money

Instead of buying entertainment, be the entertainment. People in general can be very entertaining and funny. They have the ability to create something out of nothing and this is a gift. It does not require any money, just some time and energy.

Save money by doing things with younger ones that does not require spending much money. Going to a local park is free, enjoying a picnic is free, being out in nature is free. They can be outside on a nice sunny day and life is great. These priceless activities will eventually become fond memories in their future.

Over time all of these savings and good memories will also help put them into a well established university. They may wish to take a skilled trade of their interest when they are older. Help build your assets and save that money on being the entertainment rather than paying for it. For example, going for a bike ride is exhilarating, refreshing, fun, entertaining and keeps everyone active. Plus it does not cost much money.

6. Stop Name Brand Spending

Name Brands Cost A Lot Unless You Find A Good Sale

Walking around with brand names all over your body is free advertisement for the company you purchased that product from. So you are paying for the item and then promoting it without them having to do anything.

If there are items on your credit card you have not paid off in full, do not bother buying more things. Name brands are just that, a product with a label on it. People take that label and identify it as their personality.

There is nothing wrong with having brand name labels and spending a lot of money if you can afford it and have no debt. However, to buy it because you want it even though you cannot afford it is a waste of a lot of time and energy. Are you willing to spending 40 hours a work week to buy a $1000.00 labeled purse, then to advertise it for them?

The movie “Keeping Up With The Joneses” is us about how these industries trap people into buying labels and high end items. In the end a lot of energy is exerted for something not worth sweating for.

It is okay to have brand name labels, but you are not Calvin Klein. You just a product he made.

7. Drink Water

Best Way To Quench Your Thirst

It is the cheapest beverage as of yet and it is one of the most valuable commodities on Earth. People spend so much money on all kinds of drinks. Whether it is milk, coffee, juice, pop, energy drinks, smoothies, or shakes, they all cost way more money than water.

If you drink water every day you will not be dehydrated. It is hydrating, inexpensive and good for us. Have one beverage other than water a day instead of having many beverages like juice and pop aside from water. All liquids cost money which can pay off a bill or two. Even if we drink another beverage, we end up needing water to hydrate ourselves again. Therefore drinking water is going to help you cut down on your bills over time.

11 Steps to be Debt-Free

8. Build A Vision

Build a vision for your goals and desires. This is going to be different for everyone. Create a plan and follow the steps to make that vision come true. This is related to our income, investments, desires and interests, our mental and physical health and our happiness.

If you have to pay off several credit cards, have a lease or two on a car, focus on paying it off. Write out how you plan to do this. Rather than going out and spending money, put it towards paying off some bills and tackle your debt by building a vision. Focus on a plan on how to make this happen.

Doing things like buying take-out food or buying an extra pair of shoes because it was on sale is not prioritizing your finances effectively.

Set a five year plan with a vision of what you wish to see for yourself in that time. Where do you hope to be standing financially? Make it happen starting with a vision first. Get your children actively involved around your home, cleaning and building your wealth together as a family. Talk to them about money and how to value it.

Teach them how to cook and becoming self-sufficient. Purchase my Authentic Homemade Vegetarian Cookbook available for purchase on Amazon. Thank you for your support.

Imagine all the pizzas and homemade breads you can enjoy by making your own homemade dough. You can make four or five large pizzas for the cost of one at a fast food place.

9. Electricity And Utilities

In the summertime we do not need to have the lights on during the day. Let natural light into your home, especially when the sun is out for longer hours in the summer. Keep the lights off in your home if you are not in that room. Instead of running the A.C. all throughout the summer, use a ceiling fan instead sometimes or open your window.

In 10 Ways To Stay Warm, I share ways that we can keep warm in the winter without having the heat on full blast. It may not work if it is freezing cold outside and you have a flu, in which case having the heat on to keep your body warm is essential. Overall, you can have the temperate a little lower and still layer, if possible.

11 Steps to be Debt-Free

10. Multi-Use Your Oven

The Heat Is On

Anytime you turn the oven or stove on, keep the door open afterwards. Allow the heat to disperse throughout the room. When you plan on making some food, bake several items at once rather than individually to maximize the usage. Rather than cooking foods on your stove, use the oven instead and let your foods bake for up to an hour.

These are dishes like lasagna, pizza, potatoes, oven roasted vegetables, casserole dishes, baked sweets and more. Let the oven cool down by opening the door for a half an hour to let the heat out. Not only will the home smell nice with baked foods, but it will warm up your place as well.

In Summary

Apply these 10 steps to start the process of getting yourselves out of debt and becoming financially free. These changes are not going to be a success right away but you will feel the difference in time.

Debt is a huge liability and can be generationally damaging. The more we owe, the higher the likelihood of not having any control of ever being free. Take control of your debt today and live within your means. Do not keep up with the Joneses because it is simply not your last name.

Good luck tackling your debts and becoming financially free. Freedom is a priceless gift. Plan on not owing anyone anything and make it happen.

Have a Great Day!

Original date of Post: May 15, 2023

*This blog is now updated on September 19, 2023**

Green Thumb

I am the founder of Everything Handmade. I teach others to become self-sufficient, sharing DIY home renovations, gardening vegetables in the city, cooking our own meals and building a solid foundation during economic instability.

I am also the author of an Authentic Homemade Vegetarian Cookbook. Thank you for reading and buying my book.