I recently read an article about debt. The statistics always shock me.
- 43% of American families spend more than they make each year.
- 75% of Americans don’t have enough to cover 6 months of expenses.
- 41% of Americans have less than $500 is savings.
- 27% have no savings at all.
These numbers are scary. The good news is that they don’t have to apply to you.
“Don’t tell me where your priorities are. Show me where you spend your money and I’ll tell you what they are.” – James W. Frick
As someone who lives debt free, I can tell you that the associated peace and freedom are invaluable.
There is nothing I could buy that could make me feel the way that living debt free feels.
We didn’t get here by luck. It was through deliberate effort and long-term thinking. It was dreams that turned into goals that were followed by action.
If you are like the average American with over $200,000 of debt, don’t believe that you are stuck. You can break out of your financial prison and embrace the peace and freedom of financial security. It won’t be easy. You’ll want to quit. Your friends will make fun of you. But I promise you, it will be worth it.
The key is to start small and ease into it.
Remember the statistics from the beginning of this article? Only 59% have more than $500 in savings. Let’s start here. Let’s get you $500, as painlessly as possible.
How many times do you eat out each week?
The average American eats out over 5 times per week. It’s easy for a couple burgers, beers and a tip to come to $50. If you did that 5 times a week over an entire year, you would shell out $13,000.
I know that not EVERYONE in American spends $13,000 a year dining out. It’s an example, some spend more, some spend less. Stick with me here.
What if you cut out one meal in a restaurant per week? You could save that $500 in 10 weeks, 2 and 1/2 months. Over 1 year, you’ll boost your emergency fund to over $2500. (I just tripled my promise. 🙂 )
I told you it would be easy and painless. You may not be in the exact same situation. But no matter where you are at, the following is true.
Good choices, compounded week over week, result in great rewards.
Are you ready to give it a shot?
What will you cut to start your journey to financial freedom? Share with us below.