How to Set Goals that Get You Out of Debt

02.02.2018 by Marie // Leave a Comment

Getting out of debt is no easy feat, especially when we live in a society that encourages us to keep piling it on. If you’re like me, you need a goal to get you to the end of a long journey. Not just any goal. It needs to be big and feel like winning the lottery. That’s how big I’m talking.

Today I’m going to teach you how to set goals that get you out of debt, including that big lottery-sized payoff at the end of your journey. In addition, learn how to set smaller goals that keep you on track throughout your debt-free journey.

Affiliate links may be used in this post. Ordering a product through these links may result in a commission at no extra cost to you. Read the full disclosure here.

Before we get to the goal setting, I want to let you know that I subscribe to the Dave Ramsey take on money. I believe in the 7 baby steps that he teaches in The Total Money Makeover. All of the debt-free tips, ideas, and tools I share assume that you have finished baby step 1 (have $1000 emergency fund set up). Until you have that safety net in place you will continue to borrow money and open credit cards when emergencies arise.

Know Your Debt

‎Depending on how much debt you have, you may try to avoid thinking about it because of the stress it causes. First things first is to know your debt intimately. Take the time to write out every debt that you have and the total balance of that debt. If you aren’t sure who all you owe money to, take a look at your credit report.

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‎Set Your Small Goals

‎Now it is time to set your small goals to achieve paying off your debt. There are a few steps to this that we’re going to break down.

‎Step 1

‎Set dates in the calendar for paying off each debt.

‎Tip:

‎Be aggressive. Don’t set a date a year from now to pay off $2000. At that pace you will be in debt forever. Instead, challenge yourself to pay that $2000 off in 2 months. Now you have an aggressive goal.

‎Step 2

Next, set mini rewards for each set amount you pay off. This set amount can be for each debt that you pay off, each $500 you pay off, or every $1000 that you pay off.

Whatever amount you choose, predetermine your mini rewards now. Remember that these rewards should be mini becuase you don’t want to detract from your debt payoff.

Mini Reward Ideas

Rent a Redbox DVD and have a movie night
Have a DIY Spa Day (here are some great recipes to get you started)
Go to the Thrift Store and pick up a new book
Have a Backyard Campout
Roast Marshmallows around a camp fire
Host a Pitch-In Party (everyone brings a dish and their own drinks)
Invite Friends Over for a Game Night
Visit a Local Zoo or Museum on a free day (Don’t forget to pack your own food)
Attend a Free Concert
Check out a Free Class at Your Local Library
Splurge on Toppings and Have a Make Your Own Pizza Night
Spend the Day at a Craft Show to Get Inspired to Create
Have a Scrapbooking Day with Friends and Family
Grab a Caramel Macchiato

Take Your Own Family Portraits at Home

Step 3

Schedule your mini rewards along with your debt payoff goals. The reason you want to do this is to help keep you motivated for each payoff goal. It also will help you save the most money by aligning seasonally specific mini-rewards with the corresponding payoffs. For example, you would want to schedule a backyard campout in the middle of winter.

Set Your Lottery Goal

This is the big goal and it can be anything you want. It doesn’t happen until all of your debt is paid off and you have saved up the cash to pay for it. If you’ve always wanted to take a European vacation, set this as your lottery goal. Have you dreamed of owning a boat? Then make that your lottery goal.

Why Does this Goal Have to be Big?

Sometimes the idea of being debt-free is too abstract to sustain you when the journey gets difficult. You need that lottery goal to help carry you through the rough patches. You need it when you haven’t had a break in a year and you’re worn down. When your friends and family want to throw a party or take a trip and you have to say no. You need to look at this goal and say, “This is my why.”

Take It a Step Further

When setting your lottery goal, don’t forget to get concrete details in place. For example, if you want to tour Europe take it a step further. Make a list of the attractions you want to see. Plan how long your trip will be. Find pictures of the places you want to visit. Figure out your budget for the entire trip from travel to food.

Our Lottery Goal

Our lottery goal is to buy a piece of land and build our dream house on it. We took it a step further by setting a budget for both the land and the new construction. Then we listed out exactly what we want that home to have from bedrooms and offices to splurges like a home gym. We even budgeted for the cost of having blueprints dawn up. That is how serious I want you to be in your lottery goal. Take your wildest dream and figure out how to make it a reality.

Now you’re ready to set goals that help you get out of debt. Remember that in order to start this journey you have to know what you actually owe. Then set mini-goals to keep your momentum going throughout the journey. And lastly, don’t forget to set your lottery goal to see you through the trenches of your journey. Learn more about the 7 baby steps in Dave Ramsey’s book The Total Money Makeover. Your can also snag printable debt payoff trackers for your Big Happy Planner when you buy my Colorful Candy Budget Planner.

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More Ideas You Will Love:

5 Ways to Earn Extra Income
How to Budget Your Envelope System
Why You Need a Grocery Freeze
Real Food on a Budget – Domestically Creative

Easy Monthly Budgeting When You’re Overwhelmed

01.01.2018 by Marie // Leave a Comment

Are you struggling to create a monthly budget and stick to it? Do you get overwhelmed by all of those sections on traditional budgets that seem to break down your finances until they are unrecognizable? You are not alone. A lot of people struggle with convoluted budgets that make them feel like they will never have enough money everything they need. This often leads to giving up before you even really try. I understand that this type of thing can be stressful, that is why I’m sharing a new way of budgeting to help you finally get your finances on track. This system for easy monthly budgeting is simple and straight-forward.

Affiliate links may be used in this post. Ordering a product through these links may result in a commission at no extra cost to you. Read the full disclosure here.

Do you get overwhelmed by traditional budgets? This system for easy monthly #budgeting is a simple and straight-forward solution. Click To Tweet

Easy Monthly Budgeting Breakdown

Stop trying to force yourself to use traditional budget breakdowns. There are only 4 basic components that you need in your budget: income, savings, necessary bills, and debt/optional bills. I will go more in-depth on income and savings a little later in the post. Right now, let’s break down the 2 types of bills.

Necessary Bills

These are the items that you absolutely have to have a part of basic living. These include your housing, utilities, transportation, and food. To be successful at budgeting these, write down each bill individually. Then note the due date, payment amount, and a check box for when you have paid it.

Tip:

Even if you pay some bills quarterly (once every 4 months) or bi-annually (twice a year), include the amount you need to save monthly towards those in your monthly budget. This will ensure that when the bill is due, you already have the money saved for it. This is especially important if you live paycheck to paycheck.

Debt/Optional Bills

As much as we may not want to believe it, there are many bills that are not a necessary part of living. These include your cable, gym memberships, and internet services. I’m sure you are baulking at that internet one. You work from home, your kid has home he has to complete online, or a million other reasons it is necessary. The harsh truth is that it is convenient, not necessary. The number of places that offer free access to the internet, including the public library, means that if you had to, you could go without it.

Optional Bills

When you are looking for areas to cut down on your expenses, this is where to look in your budget. To help you get organized, here are a few ideas for what to include in this section:

Membership Fees – Gyms, clubs, museums

Subscriptions – Magazines and subscription boxes

Streaming Services – Hulu, Netflix, Amazon Video

Debt

This is also the section to include any debt you are paying off. Credit cards and student loans are common bills to include. Again, track the debt, the payment date, minimum payment, and check box in this section of your budget.

Track Your Savings

You know you need a savings for emergencies but you also need it for those irregular purchases that come up throughout the year. To make sure you always have enough, make a list of all of those expenditures and when they occur. Then use that list to build savings goals into your monthly budget. Make a note each month of how much you need saved to prepare for those expenses. Each month in this printable monthly budget has a “Don’t Forget” section that includes these reminders but here are a few to get you started:

Vehicle Maintenance (Oil Changes, Tire Rotation, New Brakes)
School Supplies
Kids Clothes
Christmas
Birthdays

Plan Your Paychecks

This is the key for when you are overwhelmed by traditional budgets. Most traditional budgets simply have a section for your income that you use to budget the entire month. That doesn’t work when you are struggling to use a budget. It definitely doesn’t work when you are living paycheck to paycheck. My monthly financial planner has a section to break that down for you. It is also why you need to know when your bills are due on your monthly budget.

How to Plan Your Paychecks

Start with your pay dates and the amount of each check. Then add in the expenses that come out every paycheck. For example, half of our monthly mortgage payment is automatically paid from every check. That means it gets factored out of the total check before other bills and expenses. Once you have those amounts subtracted, budget your remaining bills based on their due dates.

Tip:

Don’t forget about the next month. Some bill due dates fall early in the month before you get paid again. Make sure that you are paying them with the last check of the previous month.

Use a Register

This is the single-most overlooked area when budgeting. I worked in banking for years and I can tell you that not using a register will cost you hundreds of dollars a month. You cannot rely on your online banking or ATM balance to know how much you truly have. Many transactions do not post immediately. Some stores are slower than others at pushing transactions through. Paying for gas at the pump only registers as a dollar for days before the full amount posts. The only way to know what you have in your account is to keep a register. That is why you will find one on every monthly sheet of this budget.

Whew! That was a lot of information to take in. It all adds up to easy monthly budgeting when you’re overwhelmed. Budgeting doesn’t have to be complicated. It is about finding what works for you. If traditional budgets aren’t working then it is time to try this method. You will know what is coming in and when, and you can budget to pay your bills on time. You can implement this budget on regular paper if you want but this printable budget makes it easy and lays everything out for you. Make right now when you finally get your finances under control. Don’t forget to check these Printable Colorful Candy Planner Pages for even more organizational awesomeness!

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Be a Christmas Gift Queen on a Budget

11.03.2017 by Marie // Leave a Comment

If you haven’t already started thinking about Christmas yet, there is no time to waste. In order to get the most bang for your buck you have to start you budget and gift planning now. Most of you already know that I start my Christmas planning in January. If helps me get the best deals on unique and amazing gifts while sticking to my super-strict budget. Don’t worry if you haven’t started your planning yet. I have 5 easy steps to show you how to be a Christmas gift queen on a budget. You will get my exact strategy for finding or making fantastic gifts that your friends and family will love and staying under budget. You will also get a free printable to help you do it. Find the basic budget printable below or become a subscriber and get the entire 10-page Christmas planner for free!

Affiliate links may be used in this post. Ordering a product through these links may result in a commission at no extra cost to you. Read the full disclosure here.

Find out how to be a Christmas gift queen on a budget this year with these tips! #Christmasgifts Click To Tweet

Start With Your Budget

The first step to any successful financial endeavor is creating a budget. (Grab your free printable by clicking on the picture above!) You need to know how much you can reasonably spend on your gifts this year. They key word there is reasonably. When setting your budget you want the amount to be what you can afford without acquiring more debt and without jeopardizing your personal financial responsibilities. You can read in-depth about creating a written Christmas budget here, but here is a brief overview of the steps:

Pick Your Number – Determine the total amount that you have to spend on Christmas gifts.

Make Your List – Make a list of everyone that you have to buy for.

Allocate Your Funds – Divide your total budget amount among your list of people that you need to buy gifts for.

Again, you can get tips for paring down your list and percentage ideas for allocating your fund here. These are important for setting the foundation to be a Christmas gift queen on a budget.

Brainstorm Gift Ideas

Next, you will need to brainstorm ideas. Write down friends and family members’ tastes, likes, and needs. This is also the step to write down those big items that are on your children’s wish lists. You can refer to this list when deciding on purchases and in the next step when you are planning DIY gifts. Keep it as a reference for creating your list later.

Bonus Tip:

My oldest wants a new Xbox this year… one with a $400 price tag. That is more than the entire budget for all 3 kids combined. However, since it is the only gift he is asking for, my family and I are all chipping in to get it for him for Christmas. My brother loves this option because all he has to do is hand over money and the gift is bought and wrapped for him. You likely have family members that feel that same way so don’t be afraid to get creative when it comes to those big-ticket items.

Plan Your DIY Gifts

One of the best ways to save money on gifts is to go the DIY route. With that said, don’t plan on making more DIY gifts than you have time available for creation in your schedule. One of my favorite ways to save time on DIY gifts is to make batch gifts. (You can read more about batch gifts on Holiday Gift Options: DIY Your Gifts.) To plan for these gifts you want to write out the following for each gift:

Write down what gifts you are making and for whom you are making it.

List what supplies you need to make it.

Determine the supplies that you already own and what you need to buy.

Lastly, block out time on your calendar for completing the gift.

Make Your List

As I said above, there will specific items that your kids want that you will want to get the best deal on. Put them on your list so that you can compare prices. You also want to include the gifts that you are making for friends and family on this list. If there are materials that you need to purchase, keep them on the list so that you can save on them as well. Many of the craft stores will have awesome sales throughout November. You can also find Lightening Deals frequently on Amazon for materials such as essential oils and battery-operated string lights.

Bonus Tip:

Before you start shopping, check out the Black Friday ad previews. A lot of items can be purchased online now. Knowing the rock-bottom prices ahead of time can save you truckloads of money.

Start Shopping Now

Lastly, start shopping for your gifts now. Many stores are offering Black Friday preview sales this month in advance of the actual day. Kohl’s just had one and Walmart is having one later this month. I have shopped Walmart’s early preview in the past and had great results. I found the same amazing deals without the crowds and with plenty of stock. Don’t forget about the daily Cartwheel toy discount from Target, either. It is another great way to save on those must-have items from your kids’ wish lists. This is why having your gift list ready is so important. Plan ahead for things you may need as part as a gift. For example, if you’re buying your husband that motorbike he’s always wanted, you may need to get in contact with some motorcycle transport companies, to get it delivered to your house. Keep track of the best deals offered so that you can get the best gifts for the best prices and stay under budget.

Bonus Tip:

If you shop at Kohl’s and get Kohl’s Cash, use it to buy stocking stuffers for your family. Pick up lip balm, small toys, and even candy in-store. This is another great way to save money on your Christmas budget.

Whew! That was a lot of information. If you stuck with me to here, thanks! You now know how to be a Christmas gift queen on a budget. Don’t forget that subscribers can download the entire 10-page Christmas Planner for free on the VIP page. Now, as an added bonus to you lovely ladies, let me know what gift you’re most hoping to save on this year in the comments. I will keep an eye out for deals and if I see a great price, I will comment and let you know. You also want to check my tips for Black Friday and Cyber Monday to rock your Christmas savings this year.

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