Pretty simple, right? If only that was true. In order to do that, I have to apply a few weight loss principles that allow me to control how much I eat. Well, you can do same thing with debt.
Let's be honest. Most of this debt comes from not paying off our credit card balances. And the heavier those balances get, the deeper in debt we go. Just like with eating more calories than we burn off causes us to gain weight, spending more money than we really have causes us to go deeper into debt.
So here are my weight control suggestions applied to reducing pounds and debt simultaneously.
To help illustrate this approach, I'm going to use some real life scenarios provided by CNN/money.com.
1. The first step is to admit things are out of control. Just like with uncontrollable eating, you have recognize that you are out-of-control when it comes to spending. Once you are aware of it you can doing something about it. With dieting, it means being careful about what I put in my mouth. With spending, it means only buy what you can afford, and if you can't afford it, don't buy it. Save up for it.
This may be real difficult for some people but if you don't take control of this nothing else will matter. You may even have to go on a spending fast. It all depends on how much disposable income (that's what's left after all the bills are paid) you have. Here's a tip. Instead of spending it, use that money to pay off what you already owe.
2. Dieters track what they eat. So track what you spend. Write down everything you spend money on. Weight Watchers give you a set number of points each day. You could give yourself a set amount of dollars each day to spend and when you reach that amount just stop. That way you won't feel totally deprived or go into a shopaholic withdrawal.
3. With dieting, you know you have to eat something to survive, just as with spending you know you have to spend some money to pay your bills and buy food. So in the beginning try to just spend money on absolute necessities like your mortgage or rent, utilities, car payments, groceries.
4. Now when you buy groceries, you may want to buy generic or store brands. With eating there are what are known as trigger foods. It's the same with spending and shopping. How many pairs of shoes can one woman own? The right answer? There is no right answer. Some women admit they have no control when it comes to buying shoes. They see a pair they want and they have to have them even if they only wear them once.What's your spending trigger? Itunes? Ebooks. Netflix. Movies. Apps. You just have to have that app, right?
5. Take the money you would have spent on those triggers and pay down your debt. You don't have to do it all at once. Just make a little over the minimum at first if that's all you can do. You don't lose 50 pounds in a day either.
6. I can't lose weight when I eat out. And you can't save any money if you eat out every night either. Start eating at home and use all the money you save from those ridiculous restaurant bills to pay down your debt.
7. Stop using your credit card and begin paying with cash. There isn't really a weight loss equivalent to this tip but do it anyway. You'll feel better.
8. Leftovers. I learned not to eat everything on my plate but to save some for later and to spread the meals out. Spare change is like that. Look around the house and find left over quarters and nickels. You'll find them in your car, bedroom, under sofa pillows, and in your washer and dryer. Put them in a jar and at the end of the month, use what's in the jar toward your credit card balance.
9. When I lose weight, my clothes no longer fit and in order to
keep from falling back and eating so I can wear them again, I donate
them to Goodwill and deduct it from my taxes. With debt, why don't
you look around the house and find all those things you've outgrown
or no longer use and sell them on ebay or Craigslist. Then take the
money you make and reduce your debt.
10. When you reach your goal in dieting, the hard part begins. It's called maintenance. And it's actually harder than losing the weight. With debt, it's the same thing. Now that you're no longer in debt, what are you going to do to stay that way? No easy answer here. You have to keep tracking, only buy what you can afford, don't use a credit card except to rent a car, and pay off your balance immediately.
