The Rachel Cruze Show - 5 Underrated Tips to Help You Pay Off Debt FAST

Starting point is 00:00:05 Once you've committed to paying off debt, you don't really need a lecture, you don't need the fluff, you just need some practical tips that work to get you through the process. So today I'm going to share a handful of proven hacks that you can put to use immediately. Plus, at the end, I'm going to share where you can find out more about this and what to do. So make sure to like, subscribe, and share this episode with a friend. All right, first and foremost, when you are getting out of debt, upping your income is a game changer. So get a side hustle. Now listen, I know no one wants to extra hours. If you already have a busy schedule or you're working full time, it's exhausting. But remember, this is not forever. For some people, it's just like five or six months, right?

Starting point is 00:00:44 Like, you just kind of need this boost because it is one of the most effective ways to see significant change when it comes to your budget. When it comes to paying off debt, getting that extra income is massive. And so, listen, put on a podcast, dry free breats or lift and just do what you got to do, right? Weight tables, work the retail job, whatever you can can, this is so big. Now, you can get kind of creative and look at your own space and sell some things on Poshmark or Facebook. Maybe you sell baked goods, offer to dog or house sits. Anything that's going to bring in, even $3 to $500 a month makes a big difference. You guys, I used to do some webinars last year and would ask people that were online, like, hey, you guys, what are you doing to earn

Starting point is 00:01:26 extra cash and how much are you making? And people were easily making like $1,000 up to $2,000 a month. It was so impressive. And so what I'm finding is the more money that you can make with a side hustle is with skills that you already have. So when you are doing something with work that you're already really good at, you know, we can just throw in like photography or film or like whatever the thing is. And if you're really good at that, making that a side hustle, you're actually going to see more money because, you know, you may be a 1099 for a bit, but gosh, doing that extra side work is going to make you so much money. So to find the best side hustle that matches your skills, time, and capacity, take the Ramsey's side hustle quiz by going to Ramsey Solutions.com slash side hustle and check it out.

Starting point is 00:02:10 All right, number two is to cut unnecessary expenses. Number one, you guys, is eating out. That is where people spend the most money. So cut it out. Eat cereal, peanut butter and jellies for a season. If you have to, whatever you can to save on food, you're going to see a significant increase in your money. Now, also when you look at premium subscriptions, like, you know, really, you know, things that you're paying. I mean, for some people, it's like 40 bucks a month. Like, it's just crazy how these subscriptions can add up or even like a fancy gym membership. You may have to say no temporarily when it comes to social events.

Starting point is 00:02:43 So whether that's, you know, people's birthdays or baby showers, graduation parties, like whatever that looks like, man, it is so hard to say no sometimes. But again, if you are in a season of sacrifice, that's where you're going to find some extra money. And this one hurts my heart. But it's true. Skip the expensive trips. So whether it's an anniversary trip or maybe like, let's go travel for Christmas and go do something. Like, there is a season that you may have to say no.

Starting point is 00:03:07 And it may just be for one year, like genuinely, you guys. But that could save you thousands of dollars. And then when you are completely out of debt and you have no payments, there is something about freeing up your income and your peace of mind that is worth it. So it is hard to say no to a lifestyle. I get it, especially if you've been used to living it. But if you just make short-term sacrifices to get out, get the stress. out of your life, it is so worth it. Number three is to check your insurance coverage. So this is a big one. A lot of people will set their insurance rates and then they just move and just say, okay, this is what we're

Starting point is 00:03:41 going to keep doing. And they never go back and revisit it. So take advantage of some of the strategic bundles, whether it is bundles or safe driving discounts, you know, look at it, but reevaluate what you've been doing with insurance because it is crazy how much you could save. Because maybe your season of life has changed, maybe the car you drive has changed, whatever it looks like, go back through and look at your insurances because that is saving people a lot of money. Now, the next couple of tips have to do with taxes and investing, but first, I do want to tell you about one of our sponsors, Christian Healthcare Ministries. If you missed open enrollment, don't panic.

Starting point is 00:04:17 Christian Healthcare Ministries offers a simple budget-friendly alternative to health insurance, and you can join at any time. Because there are no open enrollment deadlines with CHM, it is, perfect if you are self-employed, starting a business between jobs, or you just want an alternative option. So you can see any doctor or hospital you want with no network restrictions and members often save hundreds of dollars a month compared to traditional insurance. Check out CHministries.org slash budget to learn more or click the link in the description. All right, number four, another place that people are finding quick cash is to adjust your tax withholdings. So if you have been

Starting point is 00:04:59 getting a substantial tax refund every spring, then you want to adjust your percentages that your employer is withholding because that means you are paying more in taxes than you should. And when you go and actually adjust this, you could find $200, $300 every single month and you're back in your paycheck. So instead of it's just sitting in Washington and they give you one check a year, go ahead and change it. So you can talk to your HR department to help you do that. And number five is pausing retirement investing. Now, people really struggle with this. But listen, this is for a short period of time.

Starting point is 00:05:31 And remember, whatever amount of cash you can get is the goal when you're paying off debt because you want to do it as quickly as possible. And that includes investing. So yes, people even are like, oh my gosh, but Rachel, up to the match, you know, that's free money. Why would I be doing that? Listen, pausing again, getting as much money as possible to pay off that debt. and then when you go back to investing with the Ramsey Baby Steps, you're actually going to invest

Starting point is 00:05:53 15% of your income, which is significantly more than most people do. A lot of people will just go up to their employers, you know, 401k match, and that's it. But instead, you're going to have so much money freed up when you don't have payments going to debt that you're going to be able to invest 15% of your income, and you will catch back up, I promise you. Now, these were just a couple of examples of how you can find extra cash as you're paying off debt. But what's great about these, is there all recommendations within every dollar. If you have not checked out every dollar, it is our budgeting app,

Starting point is 00:06:24 but now it's looking over your entire financial picture. So you're able to plug your numbers in and you're able to get some personalized recommendations of what to do to get through the baby steps as fast as possible. So make sure to check that out. Now for some instant help with tip number one from today, you can check out my episode seven creative side hustles

Starting point is 00:06:44 for an extra thousand dollars a month. I will put a link down if you are listening to you. at podcast or you can just click right here. All right, you guys, remember to take control of your money and create a life you love.

The Rachel Cruze Show - 5 Underrated Tips to Help You Pay Off Debt FAST

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