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Working Off Debt and Working Hard: How to Prioritize the Essentials of Living Modest

There are two universal rules of financial management. The first is to have emergency savings. The second is to pay off debt and live responsibly while doing so. All other aspects are just extra credit.

How does anyone get there? It can be challenging to accommodate these two aspects of financial management when a wall is hit. This means that no other hours can be picked up from work. It is what it is, and the budget is tight enough as it is. What do moms and families altogether do to meet the concern of tight budgeting and debt repayment.

Get the Savings, Now

Everything else can take a back burner. A savings is the breathing room all families need if they come across a major speed bump on the path of life. It will allow everyone to have a buffer in place if the car breaks down, a medical emergency pops up, the air-conditioner breaks during July, and anything else in between.

To get to the spot of having solid savings, commit to thinking outside the box. Sell some extra items from the garage. Use the money from the sold items and put them right in the savings account. That money exists for that sole purpose. Do whatever it takes to make it happen in a timely fashion, and make sure it stays in the count and liquid. This means it can be received quickly, typically within a day.

Cut Out Unreasonable Expenses, within Reason

It is easy to say “don’t spend money on anything that isn’t necessary.” In reality, this only leaves a few possible items on the table, including rent and electric. It is okay to purchase a few definitively unnecessary things if they bring happiness and quality of life. But, it should always be in moderation and rarely.

Make a budget out for extra expenses, such as a night out to eat or a new movie. Make these items a special and rare treat. There’s more to budgeting out for extra non-essentials, and readers can find out here what it takes to get out of debt and live a modest life during it.