By Melody C. Kerr, Founder, Centsible Finance

Last time, we talked about what I like to call, “the plague.” The burden that 80% of us are facing right now. Debt.

We also went over how to get rid of it, starting with a plan that includes the debt snowball. It’s the method the best financial experts teach.

But if you read that letter, you know starting the debt snowball–or your rainy-day savings–means you first need to have some money left over after your bills for the month are paid.

So, if you started with the plan I mentioned (listing your debts from smallest to largest, writing down how much you earn, and doing the math) and found that every dollar is accounted for, or that you’re spending more than you earn, today, we’ll go over some things you can do to get from in the red to in the green.

Even if you did the math and you found you were in the green (leftovers to start your rainy-day savings or debt snowball), still read on. What you read could help you pay down your debt even faster.

Review the Plan

So, let me go back over the plan briefly. Remember, your plan is like your guide.

Right now, you should still have your debt list written down. This is where you list your debts (credit cards, car note, personal loans, etc.) from smallest to largest. We’ll put it aside for now, but keep it handy. We always need to know what our situation is, even if we’re not quite ready to tackle it.

Now, write down how much you spend every month on your bills, like utilities (electricity, water, etc.), food (groceries, dining out, etc.), rent/mortgage, transportation (gas, highway tolls, etc.), and whatever else.

Then, write down how much you take home every month (including any interest you may earn from your bank accounts).

Last thing you do is the math. Subtract what you spend from what you earn.

If you’re in the red, meaning you’re spending more than you earn, the first thing I think you should do is take a deep breath.

Just like I mentioned before with debt, you’re not the only one. Although it’s usually how debt enters our lives, a lot of us spend more than we earn and don’t realize it. So, whether you knew this was the case or today’s the first day you’re realizing it, just take a deep breath.

What Are the Positives?

I believe in celebrating the positives. One thing I’ve learned in life is: No matter how bad things are… there’s always someone out there who has it worse than you. So, the next thing you should do is reflect on the things you can be thankful for.

If your situation is so bad that you can’t even think of anything positive, think: “If I woke up tomorrow morning with everything I thanked God for today, what would I have?”

So, don’t beat yourself up for what you could have done… what you should have done… what you would have done. It’s wasted energy. Celebrate the things you have done right lately… whether that’s a smart money decision or something else.

Now, the next thing is to start thinking about what you can change and what you should change.

Prepare to Change

We all have our weaknesses. And they’re so much easier to spot by looking at the plan you wrote down. (This “plan” I’ve been talking about is, essentially, your budget.)

For some of us, our weakness is food. Yes, we have to eat. But do we have to eat that? Let me be specific…

For me, I eat to live, but I also eat to enjoy. Don’t get me wrong. I believe in consistent, healthy eating. And while I do enjoy the healthy foods I eat, there are times I indulge… in things like cheesecake.

Most of the time, cheesecake is a temptation I can ignore. But sometimes, I just have to have it. Now, do I have to? Actually (despite what my mind tells me), the answer is no.

Some of us love to eat out. But we don’t have to. We can save a lot by buying groceries and cooking. If you go out during your lunch break from work and spend $8, that adds up to over $2,000 every year.

For some of us, our weakness is shopping. And for others, our downfall is not shopping around for a better price for the services we actually do need. Well, that could be your car insurance. So, yes, “I just saved 15% on my car insurance by switching to GEICO,” could actually be a real thing for you. (No, I’m not endorsing GEICO.) And 15% savings on a $1,000 annual premium means $850/year, instead–$150 saved.

Even your utilities are fair game. You can set your AC to a higher temperature; plug your electronics into a surge protector with a timer, so it doesn’t draw a current 24/7; or put larger loads in the washing machine with cold water.

These are all ways to cut back but there are several others. You just might have to prepare to change and think a little harder and a little more creatively.

Not Easy… But Worth It

But remember, this isn’t going to be easy. Nothing worth having is ever easy.

There are going to be sacrifices. There are going to be changes we won’t like. There are going to be times of discomfort.

But there are also going to be rewards that simply can’t be bought, like less stress, more happiness, (eventually) no debt, and freedom. Freedom to really live like no other, freedom to love one another, and freedom to give to each other.

P.S. If you find that being thrifty still isn’t enough to get you on the positive side, I have some other ideas I’ll share with you next time.