How to pay off your debt when you earn peanuts
It's one thing to pay off your student loan or credit card debt when you're a lawyer or doctor earning over $100,000 a year -- but it's a whole different ballgame when you make $30,000, with bonuses! I was one of those crazy starry-eyed kids who racked up thousands of dollars in college debt. I earned almost useless psychology and literature degrees that don't translate to big bucks (or even medium-sized ones).
So, how did I pay off my massive student loans debt? Not by earning 100K a year, that's for sure. Here are a few tips that worked for me; they're less financial (you won't get the "carry cash, don't use credit cards" advice here) -- and more psychological. And maybe a little spiritual, too.
1. Find your tribe -- tell three supportive people. Ask one person to be your accountability partner -- to keep reminding you of your goals and intentions. Ask the second person to be your cheerleader, to be proud of you no matter what. Ask the third person to keep your life and money goals in their prayers or meditation -- to keep lifting you up in thoughts and spirit. Stay in touch with all three people, and remind them of your intentions.
2. Relate paying off your debt to your overall life purpose. What do you want to do with your life -- where do you see yourself in 5 years, 10 years, 20 years? Your thoughts become things, so stay focused on the positive things you want to achieve in your life. Relate your debt to other life goals. Say, for instance, that your life goal is to live in a home with a view of the ocean. Use that vision as motivation to pay off your current debt. Remember that people with low incomes can achieve big life and money goals!
3. Write your goal in the present tense. Don't say "I will pay off my debt with a low income" -- it's too future-oriented and uncertain. Instead, repeat your goal as if it already exists. Say, "I am paying off my debt with my low income" -- or even "I have paid off my debt with a low income." Your logical mind knows it's fiction, but your spirit listens to the truth in the words. Your spirit dictates your actions, which will help you attract more money into your life even when you earn peanuts!
4. Write a press release that announces you've paid off your debt. Create a press release that describes your accomplishment in detail: the ways you paid off your debt, the low income you were earning, how this money goal fits into your life purpose, and how you overcame all obstacles by setting immediate, mid-range, and long-term goals. This press release emphasizes the benefits of paying off your debt, and will help make achieving your financial goals more real. Read your press release at least once a week until it becomes reality!
5. Savor the benefits of paying off your debt. Paying off my student debt was one of the best days of my life! The freedom and sense of accomplishment was amazing. If you want to pay off your debt, stay focused on how great it'll be to be debt-free. Remind yourself several times a day that you are paying off your debt and you won't be burdened with money problems any more.
For more money encouragement, read Setting Financial Goals - 5 Tips for Finances and Goal Planning.
Laurie Pawlik-Kienlen a full-time writer and blogger; she created the "Quips and Tips" blogs:
