“You’ll ALWAYS be in debt”, “You will ALWAYS have to pay somebody”, “That’s just they way it is..”. This is the mindset of defeat. I like many of you have heard this ridiculous rhetoric, not all my life but more recently as I have be an adult. It IS ridiculous to think that you will ALWAYS be in debt, and ALWAYS be living paycheck to paycheck. We live in one of the richest countries on the planet, yet people are still living paycheck to paycheck. Why? “Oh, I had an emergency” “My car broke down, I had to get a loan” “I had to go to school out of state”. These are the excuses we tell ourselves. I understand emergencies happen, thats not what I’m talking about in this article.

Most of the time we get ourselves into financial fiascos that were because of our own lack of self dicipline and common sense.

❌ No one put a gun to your head and told you to go on a vacation to cancun that you couldn’t afford.

❌ No one put a gun to your head and made you buy that Gucci purse to impress your family or friends to make them think you’re doing better than they thought you would.

❌ No one made you buy that BMW that costs $700 a month in car payments becuase you got a new job and you “deserve it”.

This is the common TRAP people find themselves in with their finances. Not that we can’t have nice things, but you CANNOT let your nice things have YOU. I was that person too, but I have shifted my mindset and started to make a change. I am getting out of debt NOW. I’m tired of living paycheck to paycheck, and you should be too. I started a system that I will tell you about below about how I am getting out of debt so quickly and below you will find a step by step to how I did it. If you are serious about getting out of debt, and getting your loans paid off quicker, then follow EXACTLY how I describe it. Enjoy!

Step 1: Build a Relationship with God

“But seek first the kingdom of God and his righteousness, and all these things will be added to you.” – Matthew 6:33

Money is a tool to achieve your goals. More money will amplify who you already are. Just as exercise can build muscles but not character, wealth can provide security but not happiness. Trust in a higher power can give you the peace of mind to carry this weight.

Step 2: Be Disciplined

Remember the moment you vowed never to let financial mistakes happen again. That determination is crucial for getting out of debt. Discipline is essential to resist falling back into the same temptations. Stay focused, and the results will come faster than you expect.

The Formula:

Ingredient 1: Save $1,000

Life happens. Have an emergency fund of $1,000 in a separate account. Only touch it in true emergencies. This reduces the temptation to borrow money.

Emergencies include:

Ingredient 2: Create a Budget

This is a game-changer. Follow the 50/30/20 rule to allocate your paycheck:

For faster debt payoff, use the 50/10/40 rule:

Example: If your monthly income is $3,000:

Ingredient 3: Debt Snowball Method

List your debts from smallest to largest. Pay off the smallest debt first while making minimum payments on others. Once the smallest is paid off, move to the next, and so on.

Bonus Tips:

  1. Get a Side Hustle: Leverage your skills for extra income. I have several businesses that bring in over $2k monthly alongside my full-time job. My top earners are Turo and a social media management agency.
  2. Cook at Home: Save money by cooking instead of dining out. Try the app “Pepper” for recipe ideas from around the world.
  3. Avoid Lifestyle Creep: Don’t increase your spending with every raise. Always spend less than you make. Stick to the 50/30/20 rule.

Challenge Yourself

Commit to these steps for 30 days and see how much your financial situation can improve.

Additional Resources:

Thank you for reading, and good luck on your journey to financial freedom!