Читать книгу Sort Your Money Out - Glen James - Страница 29

There are four levers you can pull on a budget or spending plan to make changes so that you have more money to throw at your debt.

 Increase income. How can you increase your income either temporarily or permanently? Maybe it's time for a pay rise, or you could ask for some overtime or get a second job while your financial reason for living is to smash your debt.

 Decrease savings. You really should not be saving while you're trying to get out of debt. Anything above your $2000 emergency fund would be like borrowing on a personal loan just to have money in your account. Make sure you're focusing all your money and energy on paying off your debt. Remember, this is not forever — it's just for a season.

 Reduce costs. We all have categories in our budget that we need to review regularly. But when you have a hard-core goal (like getting out of debt) you need to be ruthless because you have to make some sacrifices with your time (like taking on extra work) or with some budget items. For example, if you pay for a gym membership and also a personal trainer you may need to make the call on dropping one or the other — or swap them both out for a less expensive group training session in a local park. I still want you to have line items in your budget that are of benefit, but you may need to review what can be reduced in your life.

 Cut something out completely. Using the examples of health and fitness, you may choose to cut this category out completely while you attack your debt. This could be ditching the gym and PT and deciding to just go for a jog to keep fit or buy some weights for the back deck. Remember, this is not forever. The deeper you sacrifice now, the sooner you will be debt free and able to get on with life!

There is no magical way to make money appear in our life — that's why I believe there are really only four budget levers you can pull to ‘redirect’ extra money from your cash flow and pay down your debt faster.