My current path to becoming debt free…..

The wife and I purchased a large white board about a month ago with the goal of paying down our debts.  So far it’s been working, but had a couple of setbacks; first was when my daughter erased the board and second was when my daughter erased the board again.  The second time I had it placed higher but she climbed onto my computer chair and the rest was history.  It was a good thing my wife took a picture of the board once we had it filled out.  So I filled out the board again and we had all our debts written down.  This includes the house, cars and any collection debt we had.  Here is the gist of the numbers.

Debt

Home:                  $160k

Car 1:                     $10k

Car 2:                     $24k

Car 3:                     $13k

Credit card 1:     $6k

Credit card 2:     $1.5k

Collections 1:     $580

Collections 2:     $350

Collections 3:     $130

Total                      $215,560.00

So after we wrote down all our debt on a large white board we can see daily, it gave us the motivation to start paying down our debts.  Some like using excel, others use budget programs but I believe that nothing can truly motivate a person/family to pay down debt like a large reminder you see daily.  Yes, it takes time to write it all down manually and calculate the math but when the wife and I did that together it helped us get on the same page.  We used to argue all the time about money and budget.  I was the one to always say “babe we can’t buy such and such item now because I just paid the credit card” Then the wife would get annoyed at me because she had plans to buy such item next payday.  I personally used excel to keep track of my budget but I was the only one who saw it.  Also I tried a computer software program called Quicken but again I was the only one who saw it.

The most important key to start on the path of becoming debt free is to include your partner or if you’re single; do it with a good friend.  It’s one way to keep each other on track or accountable.  Next would be to have a financial coach.  They will help lead you to the path of becoming debt free and grow wealth.

Second, purchase a large white board or several pieces of paper and place them on the wall of your home; list all debts, bills and income so that you will have an idea what your financial situation is.  A good financial coach would have plugged in all your numbers and printed out what your financial situation currently is.  It is still a good idea to write down the numbers given to you from your financial coach onto the white board; so that you can see it everyday.

Third, write what your top 3 Goals are for the next 5 – 15 years.  Think about how will you achieve your goals.  These steps should give you a great financial foundation.

Next time I shall show witch debts I paid off and how I felt when I paid them.