People think that big purchases are the reason for keeping them in debt. I thought the same way. The truth of the matter, it’s not that at all. This is very far from the truth. Most of us are aware of the damage that we create when making big purchases. This is why we seldom do it.
One Thing Killing Your Finances
The number one thing that has most people in debt are the small ankle biters. Yes, this is the one thing killing your finances and you don’t even realize it. These are the small purchases that we don’t keep track of. We eat out, visit grocery stores, and take advantage of sales. Our mind tells us, this is only $20 or $40. What’s the big deal?The number one thing that has most people in debt are the small ankle biters. Click To Tweet
The big deal is when you are constantly spending $20s, they add up. When I put our family on a budget, I was more shocked at our small purchases than anything. In the past, I purchased a lot of sale items, thinking I was winning…not at all!! Look at me spending when I didn’t need it at all. If you’ve been following me on Youtube, you know that my past videos were mostly shopping hauls. At the time, you could guarantee that once a week, you’ll find me in Ross, Target, TJMaxx or Burlington. Let’s do some math. If I’m spending $60 a week at these stores, that would be $240 a month. This is extra money that could have went to my car note that I had at the time. (The car note that no longer exist because I woke up!) Dave Ramsey calls these small purchases ankle biters.
In Order To Win…
In order to win in finance, you need to get a hold onto your ankle biters and use that money wisely. Use them to pay off your debt or invest in your retirement. I know, that doesn’t sound exciting, but doing this will set you free in the future.
By attacking our ankle biters, I was able to pay off $30,000 in debt in 10 months (which was the balance of my car when I started my journey.) I would have never imagined this to be possible! A blogpost is coming on specifically what I did, but this is it in a nutshell. Get rid of those ankle biters! Increase your income without even getting a raise. It’s possible. Get on the other side of money!Get on the other side of money! Click To Tweet
Getting out of debt and planning for your future isn’t just about money. When it comes down to it, it’s about being able to live a life that you want to live, rather than getting by to pay for stuff.