You Don't Need That Ish...My New Mantra Plus My Strategy To Get Out of Debt

Y'all think it's bougie, I'm like, it's fine but I'm tryin' to give you a million dollars worth of game for $9.99. - The Story of O.J., Jay Z.

So this new way of life isn't the easiest.  I have to constantly tell myself "you don't need that ish" every time I want a caramel macchiato or see that BR has a sale or don't feel like cooking.  This is an adjustment.  How do I stay focused? I look at my goals every single freaking day, all the time, morning, noon and night.  I'm learning to forego temporary or short-term satisfaction for my ultimate goal.  I just keep telling myself the same thing I say when I'm fasting..."this is temporary, it won't last forever."  Also, the more I do now, the shorter the time it will take for me to reach my goal.

So what's my strategy?  I'm using the debt snowball.  People have different opinions on the best method to get out of debt.  This is the one I chose because it works best for me.  You have to pick what works best for you.  Some of the strategies I've heard discussed are as follows:

• Payoff your debt in descending order of the highest interest rate to the lowest (called the debt avalanche)
• Payoff your debt in descending order of the highest minimum payment to the lowest
• Payoff your debt in ascending order of the lowest balance to the highest (called the debt snowball)

Regardless of the strategy you choose, it will work if you work it.  Consistency is the key.  So what is the Debt Snowball?  The idea is to make minimum payments on all of your debt and apply all extra funds to the debt you have prioritized as the first to payoff, the one with the lowest balance.  Once you have paid that debt off you apply the minimum payment of that debt to the next one on the list while throwing any extra funds at debt number 2.  You keep doing this until all of your debt is gone.  Below is an example of the Debt Snowball.  In this example this person's debt is listed from smallest to largest which is also the order that they will pay off their debt.  How does it work?  They will pay the minimum payment on all debt and add any extra money, in this case $200, to the Target account until it is paid off.  This will take 2 months.  Once the Target account is at a zero balance they continue to pay the minimum balance on all debt and apply the money that was going towards the Target account, $225, to the Shell account until this account has a zero balance.  You keep applying these steps until all of your debt is paid off.

So why the Debt Snowball?  Because just like a diet, people are far more encouraged to keep going when they see progress.  Is the Debt Avalanche better mathematically?  I believe the Debt Avalanche will shave off a few months towards reaching your goal but you have to crunch the numbers to make that determination.  Ultimately, you have to find the plan that works for you and stick to it.  This one works for me...as of today I have paid off two credit cards.  I will be paying off the third card by the end of this month.  

You can do anything you put your mind to, it is what you tell yourself that will determine your outcome.  I encourage myself constantly, not just with this plan of getting out of debt, it is a strategy I developed at a young age.  Every time I had to run during cheerleading or dance practice I'd tell myself "the faster you run, the faster you're done Lani."  When I fast I remind myself that this moment of forgoing food is nothing in comparison to the number of days I've eaten throughout my life, it's a minute percentage.  Further, this is a healing process that will make everything in my life better once I reach my goal.  I say to myself, "you can do anything for a day Lani."  I talk to myself A LOT!  

I have constantly prayed for wisdom, James 1:5 says "If any of you lacks wisdom, let him ask of God, who gives to all liberally and without reproach, and it will be given to him."  It is wise to be a good steward of your money.  I believe the revelations I've had recently are a direct result of my prayers.  I admit I feel a little late to the party but better late than never.  Debt is voluntary slavery, it hinders you from so many things.  But like any bad habit, each individual has to come to this conclusion and be self-motivated to change when they are ready.  I also realize that when you're in survival mode, you can't hear any of what I'm saying.  I've been there, just focused on bringing in enough money to cover my bills, sometimes I simply didn't have enough, so something had to give.  Maslow's hierarchy of needs is real, I had to do what I had to do at that time in my life.  It was a choice between food, water, transportation and power versus anything else, my necessities won every time.  So, if you are still in survival mode, I encourage you to keep pushing forward, don't give up because it will get better.  I'm a living testimony.  I've gone from lack to surplus because I refused to give up.  No matter how many times I heard the word no or was rejected when I was trying to put myself in a better position, I knew and kept telling myself that God loves me too much to let me stay like this.  Guess what?  He didn't let me stay like that.  So again, I encourage you to keep pushing forward, things will change.