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It can be hard being in your 20-somethings and on a debt free journey. Basically every time you get on social media someone is jet setting somewhere new, everyone is trying Orangetheory and SoulCycle, and you’ll find everyone at brunch on Sunday. It’s tough, especially when you’re trying to dig yourself out of debt. But, don’t give up, you can enjoy your 20s and still be on a debt free journey. Here are some frugal tips to follow for all 20-somethings.
Tip #1: Acknowledge your Sacrifices
Always, always, always acknowledge the sacrifices you are making for your debt free journey, especially if you’re a 20-something. You’re doing a lot to get yourself out of debt, so acknowledge that! You’re getting your financial life together very early on, and that’s something to celebrate. Being on a debt free journey is all about sacrifices now for a better future, but that doesn’t mean you need to live under a rock and do nothing. Remind yourself of the things you are giving up to help yourself out of debt. For me, that’s reminding myself that I’m living with my parents instead of in an apartment in a fun city.
Tip #2: Budget for Fun
It’s important to budget for the fun things you enjoy in your life. You might think if you’re on a debt free journey then you can’t budget for any fun, absolutely not!! You’re going to drive yourself crazy and probably end up spending money you don’t have, if you don’t budget for fun things. The important thing about getting out of debt is not adding any new debt. If you don’t plan for fun, then you’re more likely to put it on a card and spend money you don’t have. If it’s in the budget, then it’s okay! Plan for fun money so you don’t drive yourself crazy on this journey.
Tip #3 Sinking Funds
If you haven’t heard of sinking funds, you need to get on the band wagon ASAP. Sinking funds have been a total game changer for me and have allowed me to still enjoy my twenties while paying off my massive debt. Sinking funds are when you have a set amount you are saving for something in the future so you have the cash when you need it. This is how I was able to go to Punta Cana, San Francisco, and Florida during my debt free journey. I knew I wanted to go on these trips, so I started saving for them months in advance. When it came time for the trip, I had the cash ready and it didn’t take away from my snowball.
Tip #4 Happy Hour
Happy hour has become my best friend on this journey. Happy hour allows you to still go out and enjoy time with friends, but at a much lower price. This goes back to tip number two, make sure you budget for these types of things, if they bring you joy. For me, I enjoy attending happy hour on Fridays with my coworkers. It’s a great time to unwind and have fun outside of work and I probably wouldn’t be as sane without all the laughs.
Tip #5 Cut Spending for Necessities
Unfortunately things like toilet paper, shampoo, soap, and groceries have to be bought and there really is no way to get rid of these expenses. But there are ways to get creative and cut spending in this area. For me, I have moved to a more vegetarian lifestyle to lower my grocery budget, used coupons, used loyalty cards, and switched to generic brands. These switches aren’t going to make me rich, but they have all lowered my spending each month, which means I have more money at the end of the month to go to debt. Look at what you buy each month and see if there are ways to make switches to save money. One of the biggest ones for me was switching to baby wipes from make up removing wipes.
Tip # 6 Plan your Debt Free Journey
Make sure to plan for your journey and have a set date you want to be debt free. This can be tricky, but once you sit down and create a plan for yourself, it will be easier to stay on track throughout the process. My recommendation is to use undebt.it to create a plan for yourself. They make it super easy to put in all of your debts and choose the plan that works best for you. This way you will be able to see when you’re going to be debt free and this will keep you motivated when you’re tempted to go off budget.
The important part of being on a debt free journey is to not go into new debt and focusing on creating a better financial future for yourself. This doesn’t mean that you have to completely miss out on your twenties while you get yourself together. Make sure to plan, budget and keep enjoying your twenties, and then you can really enjoy your thirties! 🙂 What tips do you have for 20-somethings on a debt free journey?