Welcome Mia Jones! She is going to share some ideas on keeping ourselves motivated during the long haul. Paying off debt and developing financial fortitude are not easy or quick. They are worth it.
Let’s be practical. paying off debt is not a piece of cake. For most people, it could take years to get out of their debt slump. During the long journey of debt repayment, it’s quite natural to have ups and downs.
Sometimes, it seems like the debts can be paid off easily. But sometimes, you may feel like your entire life could be spent on paying off those debts. You can literally feel like you are sacrificing so much, but no result!
Well, these feelings are absolutely normal if you have huge debts but a small income.
It could take a long time to get rid of the debts, but you can enjoy the happy ending!
However, you have to do one more thing along with making debt payments i.e. motivating yourself. Yes, since the debt repayment process has both blue and bright sides, you have to get ready to beat with debt blues throughout the journey.
Don’t take more stress! There are numerous ways to keep yourself motivated throughout your debt pay off journey.
Here you go!
1. Fix a goal
It is easy to feel lost when you don’t have a goal or plan. When you have a plan, you know what you need to do next. So, move according to your goals. You may want to get rid of the credit card debts first instead of student loans. So, set your goals accordingly. However, keep making student loan payments while concentrating on other debts.
2. Pick the right debt repayment option
If you have multiple debts and you just make payments towards debts randomly, you might end up paying more in interest. This could take a longer time to get out of debt as well.
Thus, you need to choose the tight debt repayment method. There are two popular debt repayment methods, the debt snowball method, and the debt avalanche method.
A) Debt snowball method: In the debt snowball method, you need to arrange your debts from the smallest to the largest outstanding balance. Now, target the smallest debt on the list. Make larger payments to the smallest debt while paying the minimum to the other debts in the list. Make sure you make minimum payments to the rest of the debts. Otherwise, you will start accumulating interest on them. Keep making large payments to the smallest debt until you pay it off. Once you pay off the smallest debt, target the next debt which is smaller in the list.
Keep following the method until you repay all the debts one by one.
B) Debt avalanche method: Debt avalanche method is different. In this method, you need to arrange your debts from highest interest rate to lowest interest rate. After that, you need to make larger payments to the highest interest rate debt while paying the minimum to the other debts. Once you repay the highest interest debt, target the second-highest interest debt and follow the same.
It is advisable to follow the debt snowball method if you are a newbie in the debt payoff journey and have multiple debts.
Why should you follow the debt snowball method?
3. Get the visual effect
Visual effects can be motivating as you can see the progress of your hard work. If you are following the debt snowball method, then create a debt snowball tracker and hang it in your room. Mark a cross sign after paying off the target debt on the list. It can remind you of how much you have achieved. You will certainly feel motivated.
4. Write down a list of “Why”
You need to keep some other visuals to stay motivated throughout the debt payoff journey. Since the debt payoff is not an easy task, you might feel irritated and go out of your focus. Thus, you should be very clear about the reasons.
Ask yourself why do you want to repay your debts?
Write down all the reasons you want to ditch your debts in a list and hang it in your room.
Whatever the reasons are, make sure they are always in front of your eyes. This will give you the motivation to make lifestyle changes for good.
5. Read success stories
You are not alone, somewhere some people are also sacrificing just like you to get out of debt. Even some people have already succeeded and currently enjoying their debt-free life. So, nothing is more motivating than relating yourself with someone with the same problem. Well, you shouldn’t go to the library to read heavyweight debt-free guidelines. You can come across many debt payoff success stories online.
Many personal finance bloggers have shared their own stories of debt payoff journey that are really motivating.
6. Reward yourself to celebrate your first win
Everybody has to reward themselves for achieving success. No matter how small the achievement is: you should appreciate yourself. If you are following the debt snowball method, then you should celebrate once you pay off the smallest debt.
Every $1,000 of debt paid, you can also reward yourself.
There are many ways you can celebrate your win.
7. Think about how your life will change after getting out of debt
To stay motivated during the debt payoff journey, you should focus on how your life will change once you become debt-free. Think about the ways your life will change when you have no debt.
Once you will become debt-free...
8. Share your feelings with someone
Sharing the thoughts and feelings is very important especially when you are dealing with stress. The debt payoff journey can be a stressful one as you may have to make many lifestyle changes. So, you might feel irritated or unenthusiastic. Sometimes, you can become confused out of overly encouraged.
But, once you share your feelings of irritation or encouragement with a supportive person, a sense of accomplishment grows in you. You can even get ideas from the person to whom you are sharing your thoughts.
So, tell someone about your journey who can give you support instead of judging you.
Lastly, always remember paying off debt is a long process but one of the worthy processes that can change your life for good.
Hi! I am Ali, a homeschool mom who is passionate about science, managing my money and time well. Unfortunately, with an army of tiny faces, I am always still kind of a mess.
I was tired of not having a judgement free place to talk about money troubles with other moms. So I created one!
Click on the picture above to join my Facebook Group, Money Savvy Mommas.