You’ve had a week to think about your BIG dream of quitting your job to stay home. But as much as you try to manipulate them, the numbers still aren’t adding up. Don’t let this frustrate you – it’s to be expected.
We have been manipulated to live a lifestyle of consumerism. We are told we can be beautiful, rich, happier, more fulfilled – but to do that, we have to buy this product, drive this car, or wear these clothes. To try and keep up, we go deeply into debt. Debt is a pit that is very difficult to come out of – literally, physically, emotionally, mentally, and socially.
But if Debt is another D word, it can be overcome by applying the other 5 – Dream, Desire, Determination, Dedication and Drive. And we can take control of our own lives, rather than be manipulated by the Man Behind the Curtain – which would be advertising companies and society as a whole.
If your numbers aren’t adding up, then it’s time to take a closer look at your debt and find ways to dissolve it. Let’s talk about just exactly how to start reducing or eliminating debt.
Simple Life Home Budget
Simple Life Home Income & Expense Spreadsheet
Simple Life Home Finance Bundle (Home Budget/IEW/Simple Life Dollars & Sense eBook)
The Farm Wife (website)
Let's Visit! (email)
Amazon Shop Page
You’ve had a week to think about your BIG dream of quitting your job to stay home. But as much as you try to manipulate them, the numbers still aren’t adding up. Don’t let this frustrate you – it’s to be expected.
We have been manipulated to live a lifestyle of consumerism. We are told we can be beautiful, rich, happier, more fulfilled – but to do that, we have to buy this product, drive this car, or wear these clothes. To try and keep up, we go deeply into debt. Debt is a pit that is very difficult to come out of – literally, physically, emotionally, mentally, and socially.
But if Debt is another D word, it can be overcome by applying the other 5 – Dream, Desire, Determination, Dedication and Drive. And we can take control of our own lives, rather than be manipulated by the Man Behind the Curtain – which would be advertising companies and society as a whole.
If your numbers aren’t adding up, then it’s time to take a closer look at your debt and find ways to dissolve it. Let’s talk about just exactly how to start reducing or eliminating debt.
Simple Life Home Budget
Simple Life Home Income & Expense Spreadsheet
Simple Life Home Finance Bundle (Home Budget/IEW/Simple Life Dollars & Sense eBook)
The Farm Wife (website)
Let's Visit! (email)
Amazon Shop Page
Welcome back to the porch. You’ve had a week to think about your BIG dream of quitting your job to stay home, or about any other BIG dream you may have. But as much as you try to manipulate them, the numbers still aren’t adding up. Don’t let this frustrate you – it’s to be expected.
We have been manipulated to live a lifestyle of consumerism. We are told life can be so much easier, or we can be beautiful, rich, happier, more fulfilled – but to do that, we have to buy this product, drive this car, or wear these clothes. To try and keep up, we go deeply into debt. Debt is a pit that is very difficult to come out of – literally, physically, emotionally, mentally, and socially.
But if Debt is another D word, it can be overcome by applying the other 5 – Dream, Desire, Determination, Dedication and Drive. And we can take control of our own lives, rather than be manipulated by the Man Behind the Curtain – which would be advertising companies and society as a whole.
If your numbers aren’t adding up, then it’s time to take a closer look at your debt and find ways to dissolve it.
Let’s talk about how to reduce or eliminate that debt.
One of the biggest expenses on our Budgets and Income & Expense sheet are in the form of loans and credit card debt. Once you can reduce – or eliminate – these, the chances you have to quit your job to stay home greatly increase.
On your trial Budget that we talked about last week, subtract the amount of money you currently pay on loans and credit cards. Check to see if you will have enough income to live, yet still allow you to quit your job to stay home. If it is, then your next goal is to pay them off.
Make a list of the loans and credit card debt with the current balance. Then find the one that has the least amount owed and apply the Snowball Method. This method is simply taking the loan that has the smallest balance and paying it off first. From there, apply the payment you would normally pay on that loan to the next lowest balance, until it is also paid off. Continue in this method until all of your loans are paid in full.
If your money allows, pay more than the minimum amount owed. If possible, make at least an additional 1/2 payment each month, or if not, an extra payment or two a year.
The largest loan you may have will be your mortgage. If your goal is to pay this one off early, you can continue with the Snowball Method, and apply the payments you were making on smaller loans to this one. Or you may opt to pay extra each month, or an additional payment once or twice a year. How much you pay on a monthly basis will determine how quickly you can pay it off.
However, trying to eliminate your mortgage payment before you quit your job to stay home may take years, and possibly create added frustration. It will make you feel as if your dream is unreachable. Instead, it may be better to determine if you can meet your mortgage payment on a single income.
When it comes to credit card debt, most of us only pay the minimum amount due. A few tips to start paying down your balance are:
· Pay more than the minimum amount
· Pay twice a month – one payment needs to be at least, or slightly higher than the minimum, the second payment should be as much as you can comfortably afford
· Refrain from using the card as much as possible until the balance is paid
· Once it’s paid, don’t charge any more than you can comfortably pay off each month
If you are already stretched to the max with your finances, you may want to apply the Snowball Method to your credit card debt as well. Once you get at least one loan paid off, choose between paying off the next loan or reducing your credit card debt until it is eliminated. But even if you choose the Snowball method, try to at least pay more than the minimum each month on your credit cards, and use them as little as possible.
You may also have what I consider ‘other’ income, which includes royalties, dividends, gifts, or something else. Be easy when depending on this as regular income.
If you receive Royalty or dividend checks, you already know the amount of the check will fluctuate with each payment. Because of the varying amounts, most of this type of income should NOT be counted on as steady income. But they are a great way to reduce debt. Instead of counting on them as income, use the money to pay down debt, or put them in savings to increase your balance.
But just paying off your loans, and possibly your mortgage is just the beginning. We still spend more than we should. Cutting out some of these expenses will be your next step.
Some of our expenses aren’t truly necessary or can be reduced. These are things like gym memberships, a higher than necessary clothing allowance, or entertainment in the form of restaurants, movies, and expensive vacations. Although you don’t have to completely give these things up, they could be drastically reduced.
Take the gym membership for example. The average cost for a gym membership is approximately $50. That’s $600 a year that could help you pay off a loan or credit card bill. Instead of going to the gym, do your exercise at home. Walking is free. An aerobics or other exercise video is relatively inexpensive, and you can use it on a daily or weekly basis without additional costs.
As for restaurants and movies, you can reduce the frequency of these and instead, use them for special occasions. The rest of the time, you can cook meals at home and set up a movie night once a week.
For more tips on cutting expenses, it helps to adopt a Frugal mentality. Rather than cover the same ground I already have, let me refer you back to Episode 12. It covers quite a few tips and ideas on Frugal Living.
And now that I’ve said all of that, let me add one piece of advice, which may sound counterproductive – but in the long run, it isn’t.
Don’t cut yourself so short you can’t enjoy your life. Yes, there are many ways you can have fun by spending little to nothing. And yes, your dream is important. But scraping down to the bare dirt, refusing to treat yourself to something special, and giving up everything you love to do is a good way to sabotage your hard work. It won’t take long before you start becoming miserable and thinking this is too hard, and you’ll give up.
Instead, take it slow. It’s okay if it pinches a little – it’s not okay to shoot yourself in the foot, so to speak.
So. Now we’re back to trying to live on a single income. Once you have a handle on your income and expenses, it’s time to give it that test run.
Try to live on the primary income and use the second one to begin paying off debt. At first, you may only be able to take baby steps. That’s okay. It takes time and dedication to shift your spending habits. And as you adjust to your new Budget, you may find it easier than you first thought.
But once the debt has been paid, don’t be so quick to turn in your resignation. You still need some time to adjust to the new spending habits. And there is one more thing you need to do – build your savings.
It doesn’t matter if you live on a single income or three. There are times when unexpected expenses rear their ugly heads. This can be through medical expenses, having to replace a large appliance, or even buying a new-to-you car. If you have children, you will want to plan ahead for education, weddings, and other expenses.
For at least one year, continue living on a single income. Place the second income in savings. This allows you to build up a financial cushion in case of emergencies.
And once you do quit your job, make sure you KEEP adding at least a small amount to your savings account. You may reduce the amount you put in savings, but never eliminate it completely. Regardless of the amount of income you have, you still need to have some tucked back.
When your dream is to quit your job and become a full-time homemaker, keep in mind that making it a reality will take time, along with the 5-D Mentality. Take the time to truly think things through. Begin with the Dream. What does it look like to you? How far do you want to take it?
Next, you need to measure your level of desire to do this. If it only warrants a passing thought every once in a while, then that desire level is going to be pretty low. If it is all you can think about, then the level is high, and it will take the next three D’s – dedication, determination, and drive to make it happen.
Be sure to set realistic goals. Do the math. Take your current income and balance it against how long it will realistically take you to pay down your debt and reduce or eliminate some of your other expenses. Depending on how deeply in debt you are, this could take 1 to 5 years. But just hang on to the dream and apply those 5 D’s. And have faith. You’ll get there!
And one day you’ll wake up and realize it is the day you get to turn in your resignation. From there, you get to design a new plan for the future. But keep in mind, just because you aren’t leaving the house to go to a job, you still have a ‘profession’.
Homemaking and caring for a family are very high callings. They take dedication, time, organization, and careful thought to do it well.
But it is also a beautiful profession to have. It is fulfilling, heart-lifting, and can fill your days with deep-seated joy and contentment. And due to your hard work and dedication to reaching your goal, you are on your way to a new and beautiful life!
If you want to learn more about living a Simple Life, just visit my website at www.thefarmwife.com/ . If you’re enjoying listening to these podcasts, you can support the show by clicking the SUPPORT button in the show notes. When you do, you’ll be helping me continue bringing you fun and helpful ideas for living the Simple Life you love!
If you have questions or just want to stop in for a visit, you can do that through email at thevirtualporch@gmail.com. And be sure to subscribe – you don’t want to miss a single conversation. I'll be sitting on the porch every Monday morning waiting for your visit!
Thanks again for stopping in. I will see you next week on Living a Simple Life with a Back Porch View. And while you are waiting for the next episode, grab that glass of refreshment, pull up a rocker, and sit back for a while. It’s time to relax and enjoy.
Simple Life Home Income & Expense Spreadsheet
Simple Life Home Finance Bundle (Home Budget/IEW/Simple Life Dollars & Sense eBook)