The Way of No Debt : zenhabits

The Way of No Debt 
Lo ha contado mil veces y merece ser rebloggeado cada vez:

Here’s what I did:

1. I finally faced the problem: I took the bills out of the drawer, and make a spreadsheet with all my debts, the amounts, and the minimum monthly payments.

1. I took a look at our spending, and realized we needed to stop the bleeding before we could start healing. We were spending more than we earned, or at best, all of what we earned.

1. So we cut out all kinds of expenses: cable TV, one of our cars, magazine subscriptions, daily lattes, going to the movies with the kids, buying new things other than actual necessities, going to the mall for entertainment, eating out, buying convenience food. Many of these things we cut out gradually, a month at a time, but some we cut out right away.

1. We started a spending plan — most bills were put on automatic payment, and a few discretionary categories (food, gas, etc.)

1. I started an emergency fund.

1. I started paying off the debts, one at a time.

1. I renegotiated with some of our creditors.

1. We found other fun ways to have fun as a family.

1. I started earning more as a freelancer, to bring in extra income.

1. I started this blog, and sold my first ebook 11 months later, to make more income.

Then we got out of debt. And stayed out. We haven’t been in debt one single minute since then. It’s wonderful.