Debt has been normalised these days. Some people are into the habit of borrowing money to get by in the form of loans or to simply purchase whatever they fancy by swiping via credit cards.
Unfortunately, a lot of people fall for the debt trap not realising that because they can afford the minimum payment doesn’t mean they can afford the purchase. I am glad I am able to break free from this kind of mentality and held my ground.
Apart from the No-Spend Challenge I put through to myself in July, I have been consistently taking the route to being debt-free. It was a big challenge from the get-go especially when I was still finding the perfect balance on our budget. I still get swayed sometimes but I finally had all these things held in check.
Indeed, it is quite tough to stay debt-free. It does not sound simple at all especially when you’re used to swiping your plastic. New fridge? $1500. New Lounge set? Another $1500. Holiday? $3,000. New car? $20,000. If I want to stay debt-free, I will need the money for these things. It’s tempting to say “I am debt-free so I can buy XYZ” and then you start to think “where is my money going?” and “How do I pay for these in the future?”
But lo and behold!
We realise the budgeting challenges are shifted but still there. To be honest, we said “no” to many of our wants. Again, it was not self-deprivation. We have all the things we needed. Cutting down is not a punishment; some people prefer the easier route because they don’t want to change their old habits with how they spend their money; and that’s perfectly fine as it’s their life, their choice.
Truth be told, we felt weird when we started paying off things in cash and never swiped our credit cards for anything that we purchase.
As a matter of fact, we managed to pay off $7814.82 consumer debts in a span of 2 months; these consisted of 3 credit cards.
It was a blessing that I had a side hustle working as a Marketing Manager and Digital Media Strategist; to me, this was not work. I was only having fun as I am able to exercise my passion for writing and anything digital. It was a business partnership with my brother that gave us an opportunity to leverage some of those payments. We gained that level of momentum by going for the kill. If not for the pandemic, the business would have been soaring to greater heights. However, it was hugely affected as it’s in the events and entertainment industry.
The journey in itself is a real challenge but it’s also such a blessing! It has given us more peace of mind and hope for our future. It helps big time that Mr. Budget Tipster is on board and always have been. We were able to do it because we both were willing to make drastic changes in our lives. We have that drive to make a change. If using cash all the time is weird, then I love to be weird 😉
People need to understand that it takes work, a lot of hard work, commitment, and creativity to get to where you want to be.