In years past I always struggled with debt. I coul not get ahead. I thoguht I didn’t make enough money and had to live with credit cards and loans. What I was lacking, was the knowledge. I went to my friend Jake Rinard, and asked him to be my financial counselor. He saved my life.
Jake Rinard has been amazing in helping me get my finances in order. Today I asked him for some quick tips to get out of debt. I paraphrase him here, but here is some of what he mentioned.
1. Bring In More Cash. Do whatever it takes. Sell things on Ebay, Craigslist or neighborhood websites. Dog sit, house site, babysit, do something to bring in cash.
2. Emergency Fund. I started with $1000 and that took so much pressure off my shoulders. Just make it happen, you will be relieved when you do.
3. Nothing Extra. If you have debt, then you can’t afford the extra things like Starbucks, and apps on your phone that cost money. Don’t do it!
4. Roll it Forward | When you pay off one debt, roll that payment into the the the next payment to pay off. Keep rolling it forward to the next item to be paid off. Start with the lowest amounts, and get those paid off quickly.
4. Don’t Invest in Retirement (for now) | This shocks some people, but I will often recommend not investing in your companies retirement plan until you cut all the high interest debt out of your life. The interest you pay on debt will often be much more than you will earn in your 401(k).