Budget Well, Crush Debt, Save More, Spend Less

Get Your Financial House in Order with Dimitry Neyshtadt of 90DayMoneyPro

Dimitry Neyshtadt says he’s sick of the common rhetoric coming from the top of the personal finance industry.

“Not everybody wants to hear 60-year-old Dave Ramsey bark at them and tell them they have to count every latte in order to be financially successful because it’s not true,” says Dimitry, a Chartered Financial Consultant (ChFC) and founder of 90DayMoneyPro.com.DimitryNeyshtadt-400x400

“You can have your cake and eat it, too. That’s my language. There’s a way to find optimal balance where you don’t feel like you’re choking yourself. It’s quite the contrary. You feel proud because you’re able to juggle all of the stuff you want to handle.”

Dimitry aims to be Bill Nye the Science Guy of personal finance, breaking down complex topics into easy-to-digest pieces.

“The #DebtFreeCommunity is something that I’ve always known was there and I’ve been a resource for showing them how to optimize their entire finances and not just thinking that debt-free equals financial success. You’ve got no debt, but you’ve got no money and no protection. You’re kinda fucked! I’m being real.”

That’s why seeing debt on a spectrum instead of deeming all debt bad is crucial, he says.

“When an individual listens to Dave Ramsey, it feels so one-on-one, but Dave is speaking to millions. And that’s where the challenge comes in. His Baby Steps are outdated. The best comparison is that old wiggling machine that can jiggle the fat off of people.”

Getting on that fat-jiggling machine, Dave Ramsey’s 7 Baby Steps plan, is better than sitting down on the couch and eating potato chips, Dimitry says.

“But it’s so outdated and inefficient. And it needs to be replaced with the truth. And the truth will set you free. I show folks how to turn their finances into a well-oiled machine.”

Wise Woman Wallet Fat Jiggler Machine

Learn about how much you should save for emergencies and how to pay off debt.

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Crush Debt

How to Make Extra Principal Payments on Individual Student Loans

Lately, I’ve felt so free discussing my debt-free goals with close friends in China. When I shared how I finally paid off my undergraduate student loans 9 years and 1 month after walking across the stage, my friend, Ti, told me about a former co-worker who was taking longer than that.

This single father is approaching 40. One day, he looked at his statement and grew frustrated. The balances weren’t going down. He had been paying extra for a few years.

He called the company to complain. Little did he know that his extra payments weren’t being applied to his principal.

“Oh, no!” I groaned. “You gotta tell your money where to go.”

I’m sure many of us have played the leading role in this cautionary tale. But a few years ago, I wised up (pun intended). I learned how to make sure extra payments applied to my principal—not just my interest.

Make Extra Student Loan Payments to the Principal

Find out more!

Crush Debt, Start Here

10 Steps to Debt Freedom

You are taking a HUGE step in your life. Congrats! It’s so awesome that you want to get out of debt and are willing to seek knowledge on how to do it. If you want to go from confusion to clarity, then do these 10 steps. Don’t skip any.

The journey is tough but so worth it. Debt freedom is yours! Happy debt-crushing! Download the printable of this list and the debt-free pledge so you or a loved one can use it at home.

1. Get your mind right.

First, forgive yourself for having so much debt. And exhale. Perhaps your parents or guardians didn’t teach you proper money management. Forgive them, too. From now on, do not judge yourself for past mistakes. Debt does not define you. What you do with the debt does.

2. Declare your debt-free goal and create your “why.”

Say this out loud: “As of today, I am in control of my finances. I will not create new debt. I am striving to be debt-free by increasing my income, spending less than I earn and making extra debt payments. I want to be debt-free because _______________.”

Maybe your“why” is traveling or sending your kids to college loan-free. If you don’t have a strong, emotional reason for getting out of debt, then all of the budgets and checklists in the world won’t help you. When you lose motivation—and you will—remember your “why” to keep going. Repeat this declaration to yourself daily. Better yet: Write it on paper and sign it. You just made a debt-free contract with yourself!

10 Steps to Debt Freedom Checklist See the other 8 steps to get out of debt.

Crush Debt

10 Steps To Paying Off Balance Transfer Cards Early

It seems simple, right? To pay off balance transfer cards—or any debt— you spend less than you earn and send the leftover money to the lender. That’s true, but there’s a lot more to it. You have to get your mind right and set up systems that support your debt-payoff goals.

I’ve successfully and unsuccessfully used balance transfer cards to pay off debt quicker. I don’t recommend them unless you’re disciplined and follow these tips. I nearly maxed out the latest balance transfer card and was determined to pay it off before the 0% interest rate expired in December 2018. In this post, you’ll find each step I took to pay off a balance transfer card 5 months early.

Balance Transfer Card Debt Breakdown
Here’s the timeline:
  • August 2017: I got approved for the Barclaycard Ring Mastercard, a 0% interest balance transfer card with a $0 balance transfer fee. Yep! I transferred my debts for free! I transferred two credit card balances and a grad school loan onto the balance transfer card (Bank of America Visa $2,194 + Old Navy Visa $1,943.87 + Grad School Loan $2,809.87 = Total $6,947.74).
  • December 2017:  I paid off the two credit card balances. Those interest rates were 19.40% and 25.24%, respectively.
  • July 2018: I paid off the balance transfer card in full.
  • December 2018: The date in which interest would have started accruing on the remaining balance if it were not paid in full.

10 Steps to Paying Off Balance Transfer Cards Early

Click here get the 10 steps to paying off a balance transfer card early.

Crush Debt

Which Debt Do I Pay Off First? Here are 4 Methods (Free Worksheet)

*This post contains affiliate links. That means I receive a small commission that could help me on my debt-free journey —at no extra cost to you—if you make a purchase using the links.

If you’re new to the debt-free journey, you might be lost in the sauce. You don’t know where to start in this debt-payoff process. “Which debt do I pay off first?!,” you shout. I feel you.

When I started to become financially literate, I didn’t know anyone personally who was paying off debt. I had to educate myself.

The first things I learned were YOU MUST PAY MORE THAN THE MINIMUM and ATTACK ONE DEBT AT A TIME. Don’t spread out your extra cash across two or three bills. 

Why? Studies show that when you focus on one debt at a time, you knock out debt considerably faster than those who spread the wealth over multiple accounts. Your brain likes to focus on one thing at a time. Go with it. 

  • Put extra money (“the debt eliminator” according to Patrice C. Washington) toward one debt.
  • Make minimum payments on the rest of your accounts until you pay off the first debt. 
  • Then roll over the extra money into the next debts until you’re DEBT-FREE! YAY!

Mathematically, the rollover method makes sense too. Look at the simplified example below.
Rollover versus Even Spread Payments

Rolling over shaves off 2 months! Putting all of your extra money toward one debt leads to a closer debt-free date. That’s what you want. Attack one debt at a time.

So which debt do you pay off first?

There are a few ways to prioritize debts. One of the first personal finance books I read was The Total Money Makeover by Dave Ramsey. He introduced me to the Debt Snowball. I read more and discovered the Debt Avalanche. Then I started making my own methods up. Let’s go through these four methods to prioritize which debt to pay off first. Then download the free worksheet or Excel spreadsheet (video tutorial is below) to pick your favorite repayment strategy.

Click here to see the four debt repayment strategies.

Crush Debt, Improve Mindset

How to Get Out of Debt with Sheri Riley’s P.O.W.E.R. Process

*This post contains affiliate links. That means I receive a small commission that could help me on my debt-free journey —at no extra cost to you—if you make a purchase using the links.

Getting out of debt is quite simple. There are three steps:

  1. Spend less.
  2. Earn more.
  3. Pay off debt with the difference.

Simple, but not easy. Debt slayers are acutely aware of this. If it were all about the numbers, then everyone would be debt-free in a heartbeat. But the debt-free journey also calls on you to fix your mindset and find strength, courage and creativity you probably didn’t think you had.

Sheri Riley’s awesome book Exponential Living: Stop Spending 100% of Your Time on 10% of Who You Are lays out a solid process for setting yourself up to achieve any monumental task. She calls on you to live in your P.O.W.E.R.

  1. P – PerspectiveAdopt a point of view that empowers you.
  2. O – OwnershipOwn what is important to you.
  3. W – WisdomIdentify your one or two next basic steps.
  4. E – EngagementCommit to the implementation of those steps.
  5. R – RewardStay consistently engaged with the process in order to experience the positive outcomes.

Let me explain how to use your P.O.W.E.R. to slay debt.

P – Perspective – Adopt a point of view that empowers you.

If you want to make a change in your life or respond effectively to a challenge, the way you look at the situation—your perspective—is critical.

Sheri writes that if you see the situation as an opportunity or chance to elevate your game instead of a crushing blow or bad luck, then you’re halfway to a positive resolution. I believe her.

On a podcast, a journalist who eliminated over $100,000 of debt in two years said he stopped thinking of his debts as burdens. Instead, they became targets. Then he set his sights on getting rid of the first one on his list. And then the next one. And then the next one. I had started using that tactic, too. Each line in my debt snowball has a name, for example, Operation: I’m So Over Undergrad Loans and Operation: Old Navy is Old News (a credit card). Those names make me feel empowered. It’s like I’m a soldier on a mission, no longer the prey.

How do you view your debt and your current circumstances? It’s easy to feel down on yourself. Being $40,00, $50,000 or $100,000 in debt is no fun at all. But if your perspective is “I’ll always have debt,” well, chances are you’ll always have debt.

Forgive yourself for your past money mistakes. Shed limiting beliefs—yours and those you’ve adopted from family, friends and society. And instead of spewing negativity into the universe, speak positively about where you want to be and how you’ll get there. Say “I’m going to be debt-free. Wealth is mine!” That’s the self-fulfilling prophecy you want to manifest.

Get Out of Debt with the POWER Process

Click to read more about the P.O.W.E.R. process.

Budget Well, Crush Debt, Spend Less

9 Reasons Why Your Budget Sucks + How to Fix It

Budgets are bae! There is no way I could crush debt without them. Once I tossed out the negative connotation of a budget and actually put one in place, my debt payoff kicked into high gear. Through practice, I’ve learned that you can’t just slap numbers on a spreadsheet and go on about your day. You have to craft each month’s budget with care. If you can’t stick to your budget, see if any of these pain points hit home and try out the solutions to relieve the stress.

1. It’s not tailor-made for you.

Ladies, think of how you feel wearing that dress that fits every curve the right way. That dress that makes your ass look fabulous. Yeah, that one! You never get tired of it.

Well, that’s how your budget should feel. It should fit just right for you—not Suze Orman, not your mama, not that boss lady you follow on Instagram. These folks may offer you great tips and tools, but you have to use this budget, so make sure it’s your own.

Solution: Find a style that fits you and include budget lines you’d actually track.

There’s a variety of budgeting styles:

  • the anti-budget
  • the zero-sum budget
  • the 50-30-20 budget

The budgets that look like spreadsheets on steroids give me the hives. I’m not gonna use a line item for “hair accessories.” That’s too granular, and I hate being micro-managed.

I like the anti-budget because you simply subtract savings, giving and essential expenses from your take-home pay. What’s leftover, a.k.a. the monthly nut, is yours to spend on whatever you want (hair accessories). And you don’t have to track every penny because you know bills, savings and giving are already taking care of. When that leftover money runs out, it just runs out. But that’s too loosey-goosy for me. I need a few more categories to track my spending.

I use a hybrid that allows me to track the details I want to track and nothing more. A line-item like “hair accessories” just goes into a bucket called “Entertainment and Everything Else.” It works for me. Find what works for you.

2. It’s not aligned with your values and goals.

Heck! You may not even have values and goals. We probably all have budgets we created a few years ago that never quite stuck. Why didn’t it work out? Maybe it’s because you didn’t have a strong enough reason or vision to stick to the plan. Start with your values and the rest will fall into place.

Solution: Find your why and budget according to your goals.

For example,

  • Values: Independence and giving to others.
  • Goal: Slay credit card debt of $5,000 by December 1, 2018.
  • Budget: Allot $100 more than my minimum payment for my debt snowball each month.

Values. Goals. Budget. I can’t be independent and generous if I’m constantly giving my money to a credit card company. Therefore, my immediate goal is to eliminate credit card debt. I make sure that’s reflected in my budget each month so that money doesn’t go to shoes or restaurants—things I don’t really value. I can stick to a budget when I see the bigger picture. I can stick to it when I keep my values in mind and see, feel and smell what it will be like to live those values out loud.

“Without values, goals are rarely accomplished,” said The Automatic Millionaire author David Bach. “Values are key. When you understand them correctly, they will pull you toward your dreams—which is a lot better than having to push yourself.”

9 Reasons Your Budget Sucks and How to Fix It

Learn how to fix 7 other budget problems.