Financial Fitness: 4 Tips to Get out of Debt

Financial freedom is probably one of the most popular goals of young, successful women today. Gone are the days when we depend on our husbands and parents for all of our financial matters. We are business savvy, financially literate, and very knowledgeable about the ins and outs of a bank statement.

For many of us, even though we have the most positive intentions of realizing our financial goals, we often find ourselves stuck in the never ending cycle of DEBT and OVERSPENDING. If you can relate to these obstacles getting in the way of your quest to financial freedom , you may find the below tips very useful.

Step 1
Write down all of your monthly expenses. It's very difficult to create a plan and budget if you are unsure of where you stand. Taking a snapshot inventory of your current state of finances will prove very beneficial on your journey to financial independence. What are you currently spending your money on? Are there expenses that can be decreased or eliminated altogether?

When I initially decided to get serious about my finances, I had to take a hard look at where my money was going each month. I noticed patterns of wasting money on transportation, food, and frivolous monthly expenses. Noone needs two gym memberships! Do you have monthly bills for services you aren't using?

Step 2
Create a realistic budget. The simple act of writing down your expenses before hand will do wonders in helping you stick to your new plan. The key is to be realistic and to account for unexpected events. Be sure to also set aside at least 10% of your income to be put away toward savings. At first glance 10% may not seem like alot, however, you will be surprised at how this money begins to add up over time.

Let's say you make $500 a week. If you commit to saving 10% each pay check, you will have saved a total of $2400 a year. This is an extra $2400 that would have been wasted prior to your committment to setting aside money for savings. I don't know about you, but I would rather have this extra cash gaining interest in an account over the course of a year than using it to buy something that isn't really worth it in the long run.

Step 3
Create a timeline of when you expect to become debt FREE. Now that you are saving money by getting rid of unneccessary expenses and curbing your spending by implementing a budget, you should find that you have a few extra dollars left over. Use any excess cash to pay off your debt- starting with the smallest debt first and working your way up until you've paid them all off. Sure, it may take you any where from a few months to a few years to become free of debt (depending on how much income you have and how large your debt is), but all that matters is that you have a plan.

It took me two years to finally become debt free. I graduated from college with thousands of dollars worth of credit card bills. Once you start putting lump sums towards your debt, you will notice that the numbers begin to decrease and eventually disappear! Stay encouraged and eventually you will reach your goal.

Step 4
Brainstorm ways to increase income. Ask your boss for a raise, look for a new job, start a business, join an investment club, or apply for a second job. It took a lot of dedication and determination to get yourself into debt and you should definitely be willing to do what it takes to get yourself out.

Over the years, there have been many times when I've felt proud of my accomplishments. I'd have to say that finally becoming debt free ranks among the top ten moments. It is truly a wonderful feeling to pay off that last credit card and realize that you have accomplished something that the average American is struggling with daily. Debt is a serious problem that continues to keep alot of young, black, women from accomplishing higher heights of success and when you beat the odds, you should truly be proud of yourself!

No matter what anyone has told you in the past, getting out of debt is very possible. What it's not is easy. But for a Young, Black, Rich woman - taking the "easy" road isn't our style. I know you have what it takes to become debt free, the most important step is just getting the courage to get started!

Do you have a Debt Elimination Success Story? Share it with the YBR readers in the comment section!

To Your Success,
Alecia D.