How do you motivate yourself to save and pay off debt?

[coas93]

@homohabilis117 TBH reading more extreme/frugal subreddits, like the Dave Ramsey and FIRE ones, helped me. It was jaw-dropping and motivating to see how intensely other people are able to save… or how much worse of a financial hole they’re in, or how much better off they are than me. Gives me motivational to be better at saving.

 

[shan123]

@homohabilis117 I do a lot of side hustling to keep me busy. Once you start putting money toward whatever goal you have (mine is student loans) it becomes a little addicting to see the number going down and my fire gets lit to keep going. When I think of wanting to buy things; I think about it like I am erasing part of my effort. I make sure I actually do allow myself some spending money so I don’t feel like I am depriving myself too much which will make me spend more whenever I crack. I have read somewhere basically saying to look at buying something by how long it’ll take you to buy it. Ex: if you want to buy something for $100 and you make $20/hour; is this item worth working for 5+ hours for?

 

[homohabilis117]

@shan123 That's a great idea, about watching the number go down. I know roughly what I owe, but I don't keep tabs on it every month.

Midway through high school, my school introduced a system called "Pinnacle" where you could see your grades online, and the mathematical breakdown. My grades went from A's and B's to straight A+'s because I LOVED watching the numbers go up. It was like a game. I should definitely implement the same idea to my debt! Put the exact numbers on a whiteboard in my room that I can see all the time and, each month, keep tabs on how far they go down.

I think I might increase all my minimum payments by like $20 - $30, and focus on one to put like $500 towards each month until it's $0, then move onto the next one.

Thank you for that excellent idea!

 

[blueyedlion]

@homohabilis117 Yes!! That’s basically what I do. It’s like a side quest in a video game. I love using Mint to manage my money because of all the pretty graphs and stuff, and visually seeing the debt number go down as my net worth increases is extremely satisfying.

 

[christlovrrrr]

@homohabilis117 How is your ADHD being managed?

 

[christlovrrrr]

@homohabilis117 Do you use a monthly budget?

 

[homohabilis117]

@christlovrrrr I mean, I MAKE a monthly budget, but I don't exactly follow it. If I run out of money, I check my credit cards to see how much my last minimum payment brought them down and use that money. So my minimum payments don't actually get me anywhere at the moment. Vicious cycle.

 

[christlovrrrr]

@homohabilis117 Gotcha. Yeah, making the monthly budget but not following it/checking it throughout the month/tracking transactions is like making a study plan but then never sitting down to study. It’s useless without transaction-tracking.

I recommend using an app like EveryDollar, Mint, or YNAB to create the budget and track transactions every day/every week. Or even switch to a cash envelope system.

I would absolutely stop using credit cards until you have this under control, seems like they’re only contributing to the problem rn. That’s not worth the points or perceived benefits they give you.

 

[zanna]

@homohabilis117 How much CC debt are you in? We’re actually in the same boat, 3k after taxes, 1k left as “spending” money. How realistic is it for you to pay off the debt in a year? What’s your plan/budget?

 

[tosee2know]

@homohabilis117 ADHD is 100000% a factor in impulsive buying. Are you being treated/do you see a therapist? This might be where you want to start.

 

[homohabilis117]

@tosee2know I do have a therapist and I take Adderall (as well as antidepressants and stuff of that nature). Helps me focus, doesn't seem to help with my spending, though! But I AM working with a therapist on the spending. It helps to talk to someone about my financial choices, come to think of it. I got into a big-ish argument with my brother that I DO need a car even though I can hardly afford it, but I eventually came to realize he was right, I don't strictly need one and I can't really afford it. My therapist convinced me to return a $300 aquarium set I bought impulsively. Maybe I'll post on Reddit trying to find a buddy to discuss all my potential purchases with!

 

[uzezi]

@homohabilis117 You don't need motivation. You just need to f#&@ing do it. If you are searching, waiting for motivation to strike, you're going to be doing a lot of waiting. You don't need motivation. You just need to make it a habit. You just need to be consistent in doing the right thing. Don't focus on motivation. Focus on consistency, and you'll get it done.

 

[rosecloud]

@uzezi This is what discipline is all about. I know Nancy Reagan got into all kinds of hot water for her “just say no” campaign, but it is important to say no to the mind. It builds up our will power.

 

[neodude]

@homohabilis117 Well it takes some self control, but t heat is hard yo do sometimes. Instead of eating out daily, do it once a week as a reward for cooking at home. Make it a game. If it’s a big purchase, sleep on it and write why you need it and let someone read that, to see if makes sense.

Me, I want to be prepared. If something happens where you have no job the next day or you couldn’t work for awhile, do you want debt trailing you around or do you want something in savings to live off of? And debt is not free money, it is a loan you have agreed to pay back.

 

[elzappozah]

@homohabilis117 Why do you want to live on the ragged edge like that? Do you get some sort of jolt knowing you are one emergency away from complete disaster? So….there is no magic tip. You either look at your emergency fund as something that is non negotiable or you wait for the bad luck hammer to crush your life. You are in charge of this. Make a auto withdrawal from your paycheck to a HYSA and don’t touch it. Also (hopefully) you are putting money away for retirement. If not…please start. If you see the shiny thing then put a thirty day hold on it…..if in thirty days you still want the thing…, and you have money (that isn’t your emergency fund or retirement) then you can buy it.

 

[anita5050]

@homohabilis117 It took until I calculated how much my interest was coating me. So I got a pretty new journal, yay! But I had so much interest I could have afforded 3 journals already.

I also had to cut the card. Once I had paid off the debt and retrained my habits to only buy what I could afford, I allowed myself a credit card.

 

[naka90hara]

@homohabilis117 You gotta make it harder to purchase things on Amazon or online. Remove your saved credit cards. Add item to your cart but let it sit there for a day or two. Still want or need it? Then go physically get your credit card and enter the payment information.

 

[guymcpherson]

@naka90hara Love this, set up SYSTEMS so that when you have the impulse to buy you can’t or it’s hard to do it impulsively. Don’t rely on motivation!

 

[dre360]

@homohabilis117 Automatic payments/transfers are a godsend. I have my direct deposit hitting 3 accounts other than retirement.

1) Bills. marginally over my expenses so they all get automatically paid and it accrues over time

2) Blowing money. I have a portion of my check go to a checking account just for dumping on frivolous purchases. Out shopping, instruments, buying games/dlc/cosmetics, ordering doordash etc. It may sound counterproductive but this is to set a firm spending limit, as I previously would spend till I have nothing left. I still do, but it’s only a portion of my income.

3) Short term savings/checking. The remainder is about 250/week of which I have 100/week auto transfer to savings, the change I use for household expenses, groceries, and credit card payments

Id also like to touch on the power of habit. If you’re strict on yourself and spend 0 money for a week or 2 straight, you will be a lot less inclined to make frivolous purchases thereafter. If you get in the habit of doing extra work or a side gig several hours a day it will soon become natural. Some people work 12 hour days 6-7 days a week, and theres not much reason you can’t either, just need to try it out.

I’m a gamer nerd who spent hours a day playing video games, now I go out and doordash several hours a day for an extra 300 a week, and still dump hours a day on gaming. It’s hard to spend money while you’re working

Last but not least, talk about your goals with your friends and if you don’t have any likeminded friends, add a few more who are. Most of my friend group is lazy gamers and/or stoners, but I also talk to a buddy who works 12 hour days nearly every day and already owns several rental homes who inspires me to push myself harder just by talking regularly. There’s a saying, “look at your friend group, and that’s where you’ll be in 5 years” and there’s truth in it.

TL;DR set your bank up to auto transfer money to savings then forget about it, and work so much you don’t have time to spend money

 

[ref7]

@homohabilis117 Just do it.