Unf*ck Your Debt:
By: Vanja Us
Tags: Budgeting, Money Saving, Debt, Finances, Money

When it comes to being an entrepreneur and running your own business, one of the cornerstones towards advancing yourself to the next level is financial freedom. The key to being able to use tools like credit and loans to your advantage all starts with a good credit score.

Unfortunately, our modern education system does not teach us how credit and debt works. We may make bad financial choices in our youth, and as we go through our twenties, have to stumble through the pitfalls of high interest rates and credit card debt before anyone has had the opportunity to guide us.

Below is a comprehensive list of all the things you can do to help eliminate your debt and work towards improving your credit score.

Hint: It all starts with how you think.

FIRST — Adjusting your mindset: Eliminate the P, B, & C terms from your vocabulary.

(Poor, Broke, or “Can’t Afford.” )

Instead, put emphasis on the newfound responsibility you are placing on every dollar you do make.

Why does this matter?

Being “poor” or “broke” blames conditions outside of oneself.

Saying you “can’t afford something” implies a condition you do not have control over.

By using the suggested alternatives, you are taking personal responsibility and putting the emphasis on your own behavior, and your reaction to what’s happening in your life.

Poor or broke is a permanent mindset that affects all areas of your life.

By eliminating this mind set, you will start to open up opportunities that bring more cash into your life.

Alternatives to the “Bad Money Words”:

Say, “I am closely watching my finances”

“I am being extra careful with my spending”

“I’m trying to put my money towards other things for a while.”

“I’m choosing to be more responsible with my spending”

“I’m being very cautious about my finances.”

“Trying to be extra frugal this week/month, maybe next time.”

How to start applying this advice — Get Vocal — Financial Cautiousness is your new religion.

Start practicing how you’ll start turning down invitations with the above terms.

Share it on social media — be open about your personal situation changing and share with people that you’re taking proactive steps to be more cautious in your spending habits from now on.

Great Book to read: https://www.amazon.com/Magic-Money-Books-3-Book/dp/B071JVVVMS

“Take inventory” of your financially draining friendships and social scenes.

Practice saying no to those people and those situations. Stop enabling them.

We’ve all been there — have had the friend or family member that can never quite get financially ahead that we have to bail out.

The friend who always seems “bad at math” when it comes to their share of the bill at group outings

The friend who never tips enough so you tip more

The friend who may guilt or shame you if you can’t “be cool” and spend money on something or go to an expensive event.

Bought something for a roommate to “Be nice”

Covered the restaurant bill when someone forgets their wallet

NEWS FLASH: If your friends aren’t willing to support you in finding free/inexpensive entertainment, or ways to keep a friendship going without constantly spending money….THEY ARE NOT YOUR FRIENDS.

NEXT STEPS: Adopt some new ways to stretch the money you do make.

Master List of Money Saving Tips:

THE HEAVY HITTERS:

Ali Express — your ticket to saving a shitload of money over time.

Stuff I buy via Ali-Express: Lip color, blush, hair brushes, tweezers, underwear, slipper socks, kitchen gadgets, hair clips, fashion accessories, toys for kids, bookmarks, workout leggings, art supplies, storage containers, travel containers, Sterling silver jewelry, electric toothbrush refills, scarves, gifts, etc.

Just remember to plan 1–2 months ahead from when you’ll need the item.

Q uit Expensive Grocery Stores — They Aren’t Helping in the Long run.

Start to value money over convenience — plan your day around how to make essentials as inexpensive as possible (shop in suburban areas, foreign grocery stores, multiple stores, gas stations off the beaten path.)

The Money Saving Mega List:

Stop buying stuff you don’t need. Rule of thumb: Not in the budget, don’t need it. Shop alternative grocery stores. (Don’t go to Target ever. They design the stores to maximize your desire to impulse buy. Go to Walmart instead. Try Asian Markets like 99 Ranch, Grocery Outlet, etc.) Stop buying expensive weed. Make friends with a local pot farmer instead or better yet, try to create a lifestyle that you can enjoy without a substance to aid you. (on occasion is cool — all the time? expensive!) Join local “Buy nothing” groups on facebook to borrow things you may temporarily need. Gardening tools, etc. Quit drinking soda and other flavored beverages. Make coffee at home. Budget the time to make coffee ahead. Quit eating in restaurants (I did no restaurants for a year one year and socked away over 10k this way) Buy frozen meals for your workweek instead Quit Smoking (Habitrol Nicotine Lozenges) Report your Autopay cards “stolen” to cancel any unnecessary monthly memberships Switch to generics of everything Avoid the “lady tax” — use men’s razors/shave cream/etc — they are cheaper. Ladies — Switch to Diva Cups instead of tampons (Purchase via Ali Express. The planet will thank you.) Switch to a credit union to do your banking (I prefer navy federal) Buy small essentials from AliExpress instead Get your eyeglasses from Zenni Optical, Contacts from EZcontacts — you’ll save hundreds. Stop drinking alcohol — especially away from home. If you must drink, gather with friends and and an under $10.00 bottle of wine. Same enjoyment, fraction of the price. Switch to cheaper Birth Control (Planned Parenthood, Nurx.com) Meal Prep at home, Meal prep with a friend. Choose foods that freeze and reheat well, that don’t spoil easily. ALWAYS keep meal replacement shakes and pre-packaged healthy snacks (nuts, string cheese, etc.) on hand. By having “grab and go” options always in your fridge/cupboard, This eliminates the urge to “convenience buy” because you “ran out of food.” You didn’t run out of time — you’re just making excuses for poor planning. No more excuses. Buy fruits and veggies that are in season. If a food doesn’t make you feel full and it’s expensive, maybe seek out foods that are more satisfying. Get toilet paper via mail order — not the expensive corner store. Switch your medications to generic — buy from Walmart Pharmacy, which is significantly cheaper Get on someone else’s insurance (get married if you have to, I’ve seen it done..mediocre-ly happily ever after!) Use money saving apps like Gas Buddy, Ibotta, etc. Combine Netflix/Hulu/Disney plus with your partner or roommate Do your own nails. You do NOT need a $50.00 mani/pedi. Simple filed nails and clear polish will do. Nail night with girlfriends will be just as fun. Color & Cut your own hair (Use haircutting device from sharktank = $8.00. Split end trimmer: $24.00) Eat eggs and other cheap sources of protein (Meat from Asian markets tends to be cheaper.) Shop more often/don’t buy excess that you throw away (PLAN your meals, STICK to your shopping list. If it’s not on the list, don’t buy it.) Avoid stores where you may have impulse control issues Get in the habit of saving money, even if it’s only a few dollars a week. Tighten your budget with a weekly allowance. I recommend the cash envelope budgeting system. (Dave Ramsey’s books are a great place to start, or google “cash envelope budgeting” to learn. ) Get a Pandemic Loan if you have to (Navy Federal has a great one.) Switch your credit cards to 0% balance transfers. Pay down your highest balances and highest interest cards first. Know when to walk away from paying certain bills entirely. Yes you will tank your score, but eventually things will turn around. Sell your newer car for a cheaper used one with lower monthly payments. There’s a massive car shortage right now so you’ll get top dollar. Switch to a car insurance company that gets you better rates Get renter’s insurance and Pet insurance if necessary. If things get stolen from your car or house, or even a hotel — you’ll be reimbursed. If you get pet insurance while your pet is young, you can be covered for cost of surgery Consider pet care in mexico for expensive procedures. I take my friends dogs to vets in tijuana often. You can save thousands. Switch cell phone providers — Google Fi is great, Cricket is also a good inexpensive choice. Ditch the iphone. Nobody needs to spend 1200 on a phone. Mine cost 300 and works great. Come to think of it — you might not need a MAC either. This computer I’m typing on cost $400.00 and gets the job done. Switch to bar soap — it lasts SIGNIFICANTLY longer than liquid, stretching those dollars Buy larger refills of soap/cleaners instead of tiny bottles. Generics and store brands will come in handy here. Ditch the pricey makeup and skincare if you can. (The ORDINARY is a great brand. Use reddit to find inexpensive but quality versions for everything.) Use CASH for purchases. Studies show that when you pay in cash, the psychological effects of physical money make you spend less. Try money saving apps like QAPITAL, that transfer a certain amount to a different account every week. Use multiple accounts for different types of spending, which is completely FREE to do with a credit union Live somewhere that’s cheaper. How’s your commute? Do you need to live somewhere trendy? Can you get a better bank for your buck living somewhere farther from the city? If your car is a gas guzzler, how much will you save trading your vehicle for a smaller one? Don’t get sentimental just because your car is old. America is the only country that’s obsessed with big cars. The rest of the world prefers modest and fuel efficient ones. Don’t buy everything on Amazon — sometimes you’ll save money, other times you’ll pay 2–3 times more than you would at Walmart. Avoid stores like CVS, even if they are convenient. Don’t be fooled by coupons — saving money with a coupon is pointless if you spend more by shopping at a store that’s ridiculously overpriced. Don’t use a coupon if it’s not something you would have used anyway. Even if you “save money” — you’re still spending if it’s a purchase you didn’t need to make. Consider moving into a house with multiple roommates (Houses can be cheaper than condos and apartments, especially the farther away from a city you get.) Consider the commute to your job. If your commute is ridiculous, maybe you need a job that’s more convenient, or to live somewhere more convenient.

Well — that’s the end of my list.

I have ideas on improving credit score too — but to do that, you gotta get the spending habits under control. I’ll be here if you need me. :)