Hello friends, and welcome!
I don’t know about you, but inflation has tightened our budget quite a bit over the last couple of years. I am definitely feeling the pinch, and am trying to find ways to stretch our money further.
In 2017 my family decided to follow Dave Ramsey’s plan to get out of debt, and in 2021 we met our goal to pay it all off, including the mortgage. It took a lot of sacrifice and dedication. I’m so glad we did it, though. I know money would be even tighter if we hadn’t.
Lately I’ve been revisiting some of the principles that got us out of debt, and I’d like to share some of them with you today. I think all of these things are great ways to improve our family’s financial situation.
Follow a Budget
First things, first. It is so important to follow a budget! We will have no idea where our money is going if we don’t follow a budget. When I first started budgeting, I was shocked to see how much money we spent on unnecessary things. At first it will feel strange to place restrictions on yourself, but it will be worth it in the long run.
Once your budget is in place, you can find ways to reduce your spending. Eating out is usually an easy category to make cuts from. For us, we’ve realized that we spend much more than we would like on animal feed on our small homestead, especially since several of us eat plant based. We would like to downsize the amount of animals we keep on our property.
Avoid Impulse Purchases
Next, do whatever you can to avoid impulse purchases. Your budget is important, and you likely will feel disappointed in yourself if you don’t stick to it. Believe me, I’ve been there. It might be wise to avoid certain stores or websites.
Set Savings Goals and Automate Them
Once you are living within your means and have money left over, it is a good idea to set a savings goal or two. If you know a car purchase is in your future, it is wise to save for it. The same is true for a home down payment. It’s even better to automate your savings. Many banks allow you to transfer a set amount of money to your savings account on a regular basis.
Debt can totally wipe out your money in a hurry. It is much better to send your money to things of value instead of to interest payments. When you can, avoid debt like the plague. If you’d like to learn more about our story, click here.
Right now I am also trying to increase our income streams by reopening my Etsy shop. Selling a small amount of items on Etsy is a way that I can supplement my family’s income from my own home. As a home school mom, I’m so grateful for this opportunity.
If you have anything to add to this conversation, please comment below. I’d love to hear from you!