Dream Crushing Debt Podcast

It’s a myth that creating a habit only takes 3 weeks. It takes a lot longer, especially with the habits that are deeply engrained within us. Start slowly and put things in place to help you become accountable. --- Support this podcast: https://anchor.fm/dreamcrushingdebt/support

Getting out of debt deserves a celebration! Whatever that might be for you, but going somewhere you’ve always dreamed of (being debt free) and having the trip paid for sounds like a great reward! --- Support this podcast: https://anchor.fm/dreamcrushingdebt/support

While I’m not at all suggesting this so you can compare yourself against others, but rather know that you’re not alone. That there are others how there who can relate to you and more importantly, reassure you that the you too can do hard things. That you too will become better because of it. --- Support this podcast: https://anchor.fm/dreamcrushingdebt/support

Creating some type of visual reminder is a great way to keep in the front of your mind what your goals, dreams, and aspirations are and how debt is not going to help you get there, and instead, slow you down. --- Support this podcast: https://anchor.fm/dreamcrushingdebt/support

This is really really tough because we want or wish so badly that our situation was a little more like that of someone else we probably know. Just remind yourself that you can only work with what you have access too. And that’s okay!  --- Support this podcast: https://anchor.fm/dreamcrushingdebt/support

It can be hard to see the light at the end of the tunnel some days. Reminding yourself how far you’ve come and where you want to be are great ways to keep focused. You can keep a journal of your journey and create a vision board of things you want once you’re out of debt.  --- Support this podcast: https://anchor.fm/dreamcrushingdebt/support

Some states still use jail time to encourage you to pay debt. Some states allow debt collectors to chase after you for 4-6 years. Not to mention, you’ll be financially ruined and branded. Rebuilding your life after avoiding debt may very well feel impossible.  --- Support this podcast: https://anchor.fm/dreamcrushingdebt/support

The magic number for this has been defined at 36%, with the max being at 43%. 36% DTI gives you some wiggle room for changes in your income. Debt included in this is for any money that you owe: Mortgage, car, loans, etc. Income your gross monthly income. DTI = total monthly debt payments/gross monthly income. --- Support this podcast: https://anchor.fm/dreamcrushingdebt/support

Good debt are loans with low interest rates and often considered as a type of “long-term” investment. Such debt would include mortgages, car loans and student loans. --- Support this podcast: https://anchor.fm/dreamcrushingdebt/support

The simplest way to look at this would be anything with a really high interest rate. Such as credit card debt, personal loans, or payday loans. --- Support this podcast: https://anchor.fm/dreamcrushingdebt/support

You want to first tackle debt that has the highest interest rate first. Ideally, you would be paying extra on these types of loans first until they are paid off and then snowballing money spent on that loan into the next loan you have. You’ll probably find varying opinions on this as some are math based, others are based motivation and staying committed. --- Support this podcast: https://anchor.fm/dreamcrushingdebt/support

The are countless ways a person can make a monthly budget. With so many options, it can be overwhelming to know which way is better or more successful. My advice: Research about many of them and take from each the elements or the concepts that you like and make the most sense for you. --- Support this podcast: https://anchor.fm/dreamcrushingdebt/support

Money is a major stress point and is only compounded when more than just yourself relies on the same money. The best advice is to have open communication with the whole family to make sure they are onboard. --- Support this podcast: https://anchor.fm/dreamcrushingdebt/support

A monthly budget, in my mind, tracks where all of your money is going every month. In other words, a monthly budget includes everything you’re spending money on. How you categorize your spending is where the art of budgeting is different for everyone. --- Support this podcast: https://anchor.fm/dreamcrushingdebt/support

This budgeting concept has been popularized by Senator Elizabeth Warren. You divide up your after-tax income: 50% on needs. 30% on wants. 20% on savings. This budgeting style is rather casual, but can be effective so long as you always know where your money is going. --- Support this podcast: https://anchor.fm/dreamcrushingdebt/support

Living paycheck to paycheck makes it very difficult to find a way out of your debt. However, it is possible and it starts first with changing your mindset and believing you can make the changes needed to create a budget and live within your means. --- Support this podcast: https://anchor.fm/dreamcrushingdebt/support

 Often times our greatest achievements come when we’ve had the support and accountability of a friend or mentor.  --- Support this podcast: https://anchor.fm/dreamcrushingdebt/support

 It’s so much easier to save a a couple hundred dollars a month than it is to come up with $1,000 for new tires or whatever.  --- Support this podcast: https://anchor.fm/dreamcrushingdebt/support

 Living on the side of having nearly nothing, it makes you appreciate the kindness and generosity of others. Whether directly, or indirectly. Everyone is fighting a battle we know nothing about. --- Support this podcast: https://anchor.fm/dreamcrushingdebt/support

When I was unemployed, the amount of my monthly expenses seemed to tower over me like the Empire State Building. What seemed manageable, was suddenly daunting. --- Support this podcast: https://anchor.fm/dreamcrushingdebt/support