Today's video is a collaboration with Kim, from the Free to Family YouTube channel. Kim, is a debt-free enthusiast, just like me. We are both passionate about living well within our means.
We decided to collaborate on today's video to share ten extreme tips for saving money and getting out of debt. Whether you have a lot of debt, have no debt but are interested in saving money, or have a singular goal, like paying off your mortgage, today's video will have something for you.
I announced last year that our family had become debt-free, including our mortgage. We have been working toward this goal for a long time, and today's video chronicles many of the steps we took to get there. I chronicle our debt-free journey and greatly expand on this topic in my eCourse, Chic Financial Principles for Debt-Free Living.
Today, I'm excited to continue the discussion on the blog and share some of my tips with you.
In no particular order, here are 10 extreme tips for getting out of debt:
1. Share a vehicle Many Americans have enormous monthly car payments, whether they lease or own. Going down to one car per family (which is what the Chics did) and taking public transport instead or getting creative about when and how to use the car aides your finances tremendously. Of course, the vehicle must be affordable and within your budget. We currently share the family car and it has been no problem at all. We are doing this right now because we are saving for a financial investment we are making. Eventually, my husband would like to get an electric vehicle for his car.
2. Relocate to a more affordable area Last year we sold our West Los Angeles home and moved to the much more affordable suburbs. This allowed us to buy our home outright with no mortgage, allowing us to finally become fully debt-free. If you are able to relocate to a more affordable area, take the exciting plunge and enjoy the benefits in savings.
3. Enjoy your meals at home Relegate eating at restaurants to special occasions only and have the majority of your meals at home. Most people can agree, this one step saves a tremendous amount of money. The Chic family rarely ate at restaurants and enjoyed meals at home almost every evening.
4. Grow your own food My husband and I might be clueless gardeners, but our efforts in our totally out-of-control vegetable garden sure paid off this year. We had abundant vegetables the whole summer, which helped us keep our grocery budget in check.
5. Be an entrepreneur If you are able to work to provide an extra income stream, you can pay off debt and invest your money quicker. I like to encourage people to turn their passion into an entrepreneurial business. Sell on Etsy, provide services on Fiverr, and other websites of the like. I self-published my first book, which was an entrepreneurial endeavor in itself, and was able to pay off my student loans with my first book advance. (This story is expanded upon in my Self-Publishing Success video).
6. Rent a room in your home We have never done this, but know many people who have, and it brings a nice income in to the family. Madame Chic and her family brought in extra income by hosting foreign exchange students (me!) into their home each year.
7. Sell your belongings Once you start to clear the clutter in your home, you come across many items in your home that you no longer want. Whether it's clothing, handbags, furniture, or art, you can sell your belongings on places like eBay, ThredUP, Poshmark, or a consignment shop. Or have a good old-fashioned yard sale.
8. Cut out television (and other monthly expenses) The monthly cable or satellite bill is large. If you can cut this, plus any other monthly service (such as an unused gym membership) you will save hundreds of dollars each year (and have more time on your hands as well!)
9. Do the Ten-Item Wardrobe (really do it!) The Ten-Item Wardrobe is so beneficial, not only to your true style, but also to your wallet. If you truly do the ten-item wardrobe, season after season you will realize how much money you are saving. You will no longer participate in mindless shopping. Everything you buy will have a purpose and be used. For more on the ten-item wardrobe, check out my eCourse, Create Your Own Ten-Item Wardrobe and my Madame Chic books.
10. Change your mindset Ultimately, working to get out of debt, and not only save, but invest money for your future, requires an utter mindset shift away from mindless spending. It does require major frugality, but all hope is not lost. You can still live beautifully within your means.
Be sure to watch today's video for expanded thoughts on all of these topics.
News
I have another podcast interview to share with you. This time I chatted with Lauren Morley of The Author Podcast. We had a lot of fun chatting about living a chic and elegant life.
Check out my eCourses, Create Your Own Ten-Item Wardrobe, and Chic Financial Principles for Debt-Free Living.
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Comment of the Week
Regarding last week's Q&A video, Shannon on Facebook writes, "That was the best q and a ever! All the questions I wanted to know but was too shy to ask 😂 I’m Canadian and we are for sure not as reserved as British people but are not as famously open as Americans."
Thank you, Shannon! I'm so happy you enjoyed the Q&A :)
Thank you for joining me for today's video. I would love to hear from you. Are you on a debt-free journey? Do you have any struggles in this area? Are you currently debt-free? What tips do you have for us? Let us know and your comment could be chosen as comment of the week on the blog.
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Hi Jennifer,
ReplyDeleteWe are debt free! YAY!
My biggest tip would be that after you get debt free is to be able save enough to live for 6 months without an income in the event of an emergency.
A lot of people have been left homeless with no insurance and no savings after the hurricanes hit the south eastern portion of our country and forest fires have blazed across the west coast.
To take care of our family for 6 months to build a new life elsewhere without relying on anyone is really something to consider.
Also, a large portion of the country where a lot of our food is grown has been destroyed, I realize that the impact will affect all of us as we'll need to import to make up for the crop losses. The costs of import will be passed on to us, the consumer. Gardens are an excellent way to have free food that is delicious and nutritious and it's FUN! As you show in your garden videos, even little boxes can grow a lot of food! You get the best ROI on herbs and garlic so if that's all you can grow, it's worth it.
I may plant enough to sell next year for an extra income stream. Garlic is super easy. Herbs need to be dried so it's a bit more effort and expense to dehydrate and bottle.
We have been debt free for many years and it is incredibly freeing! I don't feel deprived or "poor." I just feel smart when I find a way to spend less!
ReplyDeleteAnother great way to save is switch to less expensive cell/mobile plans. I don't need unlimited anything and I never pay overage charges. All it takes is a little thought and maybe look up the address of where you're going before you leave home and write it on a piece of paper. No one needs to have their data turned on all the time... just eating up money. It's a mindset but it's very doable.
I'm not addicted to the "new." I love my reliable 15 year old car. Friends make fun of my "old" 4s iPhone. Our TV is too old to stream but we get FREE films and series from the library. That's a big one-- the library. We are in a small city with a small library but it's part of a multi-state system. FREE ebooks and audio downloads. FREE conversational Spanish classes. FREE tech assistance with any electronic device. Borrow camera equipment, GoPros, passes to the area national park FREE. Jennifer, I know you make your income when people buy books, but the public library is too good to overlook. It's a huge money saver on education, entertainment, and enrichment.
Hi Jennifer! I did graduate school debt-free and now I am finishing my program with all the opportunity ahead of me, and I’m not limited in my choices by debt. I think mindset made all the difference. I found that covering the basics of shelter, food, water, clothing, and phone/WiFi is manageable as long as you have a plan in place. I think about my own quality of life on my very small stipend and think about how (for my income level) I have the best quality of life anyone has ever had in history. I have access to medicine, technology for communication, a warm and safe place to live, and a way to clothe and feed myself. In the history of human civilization that kind of security and access to technology was unprecedented! We live in a time where the finest life available so far is available to the highest number of people it’s ever been. If you think about it that way, it becomes hard to throw that security away on material purchases or poor planning. Companies that sell consumer products lose money in this mindset of course, so it’s not a message we hear often. Glad you’re a voice of dissent to wasteful consumerism. It’s easier to stay motivated with a like-minded community.
ReplyDeleteThis is all great advice. I really can't add to it.
ReplyDeleteI would, however, like to see the high schools to require a finance class to teach students how to better manage their money, and how debt works. They could learn about checkbooks, paying bills, credit cards, the true cost of taking on debt, basic income tax principles, IRAs/457s and other retirement-type savings plans, making a budget, and living within their means.
I know their parents sometimes don't teach them these things, and it would be a good time to learn about it.
Celine
Hi ladies, thank you for your in-depth comments and tips!
ReplyDeleteAnon- congratulations on being debt-free... I love your tips!
DD- I love how you phrased that: you are not addicted to the "new".
Lillian- you are so right... mindset does make all the difference.
Celine- I could not agree more! I wish I had been taught this in high school. We homeschool our children and they will definitely be taking a finance course.
We are debt free, and your tips are very good ones. (I think especially staying at home/eating at home!) We have to have two cars out of necessity because we live in the country and my husband commutes to work, but we pay for our cars outright with cash, getting used Hondas, and we drive them until they have 360-375K miles! I think buying a good used car with cash and then driving it as long as you can is a great way to save a lot of money.
ReplyDeleteI also think carefully about purchases and try to purchase things used (estate sales, for instance) when we need them. When I look around our home, I see furniture that is well-made (as older furniture tends to be) and that we got for a great deal because it was previously-owned, but nothing had too much wear and tear. When we buy new, like when we purchased a washing machine a few years ago, I do my homework and we are willing to pay a little more for a quality item that will last years.
Cultivating contentment is the key. Can we be content with our life as it is? It's a spiritual issue as much as it is a practical one.....
I'd like to add this: being debt-free is a huge blessing that helps keep life less stressful, and this is all the more so when crisis hits. My never-been-sick, athletic husband has gone through grueling cancer treatments this year, and the fact that we had no debt and could pay all his medical expenses with cash before we hit our out-of-pocket maximum was something that I am so thankful for. We certainly never anticipated a health crisis, but when one struck, being debt-free had many unanticipated benefits.
Hi Polly, thank you for commenting. I hope your husband is on the way to recovery now and that all is better with him! Best, Jennifer
ReplyDelete