Do you need a spending fast to get rid of debt? Well, Anna Newell Jones says so.
Who the hell is this Anna Newell?
She is the woman who paid off $18,000 credit card debt in just 15 months with the ‘spending fast’ approach.
Before we talk about ‘spending fast’ approach in detail, let me tell you the success story of Anna Newell in brief.
Anna Newell Jones got into credit card debt before her wedding due to frivolous and mindless spending. She bought what she wanted. She spent without caring about her savings. She was happy and had no worries about her debt. May be, secretly she hoped that her husband Aaron Jones would bail her out. But fate had something else planned for her.
Aaron Jones refused to even share his bank details with Anna Newell. It was a big shock for Anna. But what could she do? She couldn’t force her husband to share his bank or credit card details with her, especially at a time when many couples choose to keep their finances separate.
Anna was all alone and she had to think about a way to get out of debt. Her life changed after honeymoon when her debt problems troubled her too much. Anna took an approach called ‘spending fast’ in September 2012 and eliminated her debt totalling $18,000 in just 15 months.
The brief story of Anna ends here and the main part of the story begins now. If you’re interested to know what spending fast is all about, go along with the flow.
What is a spending fast?
A spending fast is a method or an approach where you spend only on your needs. You live on a bare-bone budget. Your goal is to cut all your necessary expenses, pay your bills on time, have meals at home, and that’s it. There is no place in your heart for your ‘wants’.
Steps to do a spending fast
Here are a few steps you should take to get out of debt with a spending fast.
(i) Follow a reverse budget:
Look at your bank statements, credit card statements, utility bills, and other financial papers carefully. Take a pen and paper. Note down your expenses on different categories like food, clothes, shelter, and exercise. This will give you an idea about your real spending habit.
Find out the areas where you spend a lot of money unnecessarily. Cut down your expenses and use that money to pay back your creditors as soon as possible.
(ii) Create a list of your debts:
Make a list of your debts in the descending order. This means list your debts from highest-interest rate to lowest interest-rate. Your maximum efforts should go towards the ones that have very high-interest rates. These are the ones you should get rid of first.
(iii) Create a list of your needs:
The two main parts of a spending fast are reverse budgeting and spending on your needs only. Once you get into the ‘spending fast’ process, stop spending on your wants. Stop spending on branded clothes, bags, and shoes. Cook food at home instead of eating out. Browse different financial blogs to know how you can lead a frugal lifestyle. Reduce your expenses on your wants to generate cash for paying your bills.
(iv) Think before buying anything:
Don’t purchase anything just because you like it. Leave the store or the online shopping portal and ask yourself, ‘do I need it badly?’ If the answer is ‘no’, then don’t purchase the item.
(v) Be committed:
Mistakes will happen since you’re changing your lifestyle. Don’t be too strict with yourself. Don’t get demotivated with minor setbacks. Try to mitigate the damage as smoothly as possible. Continue on with your spending fast with full vigour and enthusiasm.
(vi) Enjoy your small wins:
It’s the little mistakes that pushed you towards debts and it will be little steps that will help you get out of debt. Every small step and win are important. Enjoy and celebrate them.
(vii) Join debt communities:
Join and participate in get out of debt communities where people encourage each other. It sounds easy when I tell you ‘do this’ or ‘do that’ to get out of debt, but it’s tough to go through the process. You need a lot of motivation and encouragement. People in the debt communities will support you, give you interesting suggestions, share their experiences, and help you get success.
When you’re on a spending fast, wait for your next paycheck excitedly. Think about the ways to throw more money towards your debts. It’s tough but if you can do it, you can eradicate your debt and inspire many people to become debt free. Just think, you can effect so many people’s lives in a positive way. It’s a great feeling.
A word of wisdom
Being in debt is a very bad experience. It’s a panic-triggering experience. No matter what is the total amount of your debt, it can wreak havoc on your life. It can lead to irritation, shame, itchiness, nervous breakdown, ugly disputes, and even divorces. The only good news is you’re not alone.
Don’t feel like a victim when you’re in debt. Be a leader. When you’re in massive debt, it’s your responsibility to take control of the situation. Anna has come a long way after getting out of debt. Today, she is a successful entrepreneur. She runs 3 businesses, has written a book, launched her personal blog, and is a happy mom now. She has also bought a new home with her husband. Life has completely changed for her.
Conclusion
Spending fast is a good way to get rid of debt. But it needs self-discipline, patience, and discipline. If you lack all these 3 qualities, then a spending fast won’t help you to be debt free. In a situation like this, you can call our Toll Free number 800-530-OVLG to know your options. Our Financial Coach will give you the professional guidance for paying off your unsecured debts.
Best of luck!
