Couple Money

Want to Finally Knock Out That Debt? Here’s What You Need to Do

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Want to finally knock out that credit card debt? Here's what you need to do this week to get started!

When you’re tackling big goals for the first time or are trying to really achieve a win this year, it usually means that something has got to change.

The whole ‘New Year, New You’ thing is out there this month, but it’s meaningless if you’re only doing the same old things you’ve done before.

That's why this year, as the podcast goes out, I want to tie things in with a money tip that you can use this week to bring it one step closer to your basic goals.

Get SMART with Your Money Goals

The first one is I want you to get smart with your goals. What exactly is that?

It's a framework to make sure that you're actually going to achieve your goals. It's taking what you're planning, paying off debt and breaking it down.

So with SMART goals, your goal isn't ‘we're going to pay off debt'. It's going to be specific, measurable, attainable, relevant and time base.

I want you to break it down.

I want you to be specific. Is there a credit card that you're trying to pay off or a certain amount of a student loan that you want to knock out? Be as specific as possible.

When you have that number, it's measurable. You can see the progress that you're making every month or every paycheck.

By the way, if this is your first time tackling this goal, I want you to keep it small. What debt would you like to get rid of this year?

Looking at a certain specific amount or a certain credit card, for example, that's more attainable.

You want this to be relevant to your goals. What is the big picture that you're trying to achieve? Make sure that paying off this debt aligns with it.

The last step is making it a SMART goal is having it be time-based. When do you want to have this paid off?

When you make this goal of paying off debt and then you break it down, you're more likely to achieve it.

Have a Visual Reminder of Your Why

The second tip is related to the first and it's also going to help you reach your goals faster – visualizing what you would be able to do with that money once you're debt-free.

Let's say you pay off your credit cards, that monthly amount that you're sending in for your cards. What are you going to be able to do? Could you build your savings, maybe take a family vacation or maybe use that money so you're able to change your pivot, your career?

Whatever it is, have a way for you to have that reminder, because as you're paying off that debt, if you have a large amount, you need some way to stay motivated.

Marriage & Money Tip – Link Up All Your Financial Accounts

If you're ready to tackle this debt, you absolutely need to organize your finances this year.

I want this to be a great year for you in an important way to do that is to stay on top of your money and actually know what's going on with it.

This week's money tip is to set aside an evening or an afternoon this week and dig through and link up your accounts.

Knowing how much you’re bringing in and how much you owe can actually make you feel more in control. There are several free and low-cost apps, some favorites are Personal CapitalTillerMintZeta, and Honeyfi.

Whatever tool you choose, just make sure it's something that fits your style. You'll be more likely to keep it, which means you're more likely to hit your goal. 

Make it a money date, have some fun, and you’ll be set up to stay on top of your cash flow for the rest of the year.

So go ahead- set aside time this week to make sure that your accounts are easy to manage and you know what your balances are.

And if you want to discuss this more – don’t forget to join us in the Thriving Families group on Facebook.

Our goal is to help one another out by swapping ideas, giving encouragement, and offering honest support.

I want this year to be less stress and more results when it comes to your finances.

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