Write out this story on a piece of paper. Then start making your debt payoff goals. How much do you want to pay off in three months, in six months? These smaller goals are going to feed into your longer-term one-year goal.
With your goals done, it’s time to write out your monthly budget, where your money is going. We’re not going to be spending time skimping and cutting from your budget but we need to know where the money is going.
The way a spending challenge works is you take one item from your budget. Then you’re going to challenge yourself to cut that spending in half or cut it out completely over the next two months.
Next is to do a complete clutter cleanse. A clutter cleanse means going room-to-room in the house and pulling out everything you don’t need, everything you don’t use.
The NADA estimates that buying a used car just three-years old instead of buying new will save the average person over $130,000 over their lifetime.