Ways we found money in our budget to make additional payments:
1) STOPPED OVERPAYING – One of the first changes we made was to bring all loan payments to the minimum payment set in the loan agreement with our financial institutions. We then used that extra money to tackle our smallest debt. I’m sure you remember the snowball debt reduction method we spoke about previously. If the answer is no, click HERE
2) SUPERMARKET MONEY – Over a year ago we were spending up to $1200 a month in the supermarket but barely cooked. We just purchase groceries with little to no thought. The real issue was that although we had $1200 in food, the pantry and fridge were poor after a few weeks. Don’t get me wrong, we still had groceries but putting them together didn’t actually make a meal. Meal planning was the solution to this problem. We have reduced this category by approximately $400 a month.
3) PERSONAL SPEND – Let’s rewind to early 2018. Once our budget was done, personal spend was every dollar remaining. If you recall our post on zero budgeting (which is apart of our ‘budgeting‘ blog post) you will remember that every cent of our budget is allotted to a category with a limit. It is no longer a free for all party.
4) SELLING STUFF – Although we freed up money, our reality was that a baby was on the way and he would practically use up the majority of money we found, so to avoid this, we sold a LOT of our unused stuff to cover his expenses and we had some left to pay to debt.
5) UNEXPECTED INCOME – This was a big one. We made a commitment that any unplanned money received would immediately go to debt e.g. found $10 → debt, last minute gig or overtime → debt, surepay bill lower than expected → debt. The rationale was simple, we didn’t expect it so act like it never existed.
6) CREATE A BUDGET – We saved this one for last just in case you stupse because it sounds dumb lol… but it’s important. Writing a budget showed us that we were broke…. Yup… BROKE ON PURPOSE! You would be amazed at the amount of money that passes through our hands. Writing a budget and tracking every cent helped us to identify poor spending habits and make lifestyle changes.
Trust that we did not immediately find a pancart of money to put towards debt.
Trust it is not easy being grown and having to say no to ourself.
Trust that we had to get the hang of these changes.
We had to go through ALL expenses with a fine tooth comb and find little bits of money to get our snowball rolling. If you start and only happen to find $10 …. OK! That’s a snowflake ❄ that will eventually become a snowball ☃️