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By Striving For Fire, I Will Be Able To Pay Off My Student Debt
By Striving For Fire, I Will Be Able To Pay Off My Student Debt
Because I want to achieve FIRE (Financial independent and Retire early) in a few years time and want to get rid of my student debt as soon as possible, I participated in the financial course of PorteRenee (Sorry, only Dutch & not on Instagram anymore). In this one week Instagram course I learned the following 7 things. (UPDATE: Sept 2024: student debt €0 euro).
Demotivator
Demotivator
The first assignment was to keep track of all my expenses for a month and how I felt about spending. The idea behind this is that there is an emotion behind a certain purchase that makes me buy things that are not necessary. When I was a student, I kept track of exactly what I spent and on what. Now I am starting to track my expenses again, even the smallest expenses. A nice tool for this is the Demotivator. In this tool I enter the amount for a purchase and my income and then the tool calculates for me how many hours I have worked for this purchase. If I do this before I buy something, I will probable leave it in the store. Better for the minimalist I am already.
Weekly Allowance
Weekly Allowance
Work with weekly money instead of monthly money for Groceries and fun things jar. As a result, I cannot spend everything at once at the beginning of the month. If I spend it 1 time immediately, after I have transferred my weekly money, I have another chance the following week to budget more. After trying this I now buy groceries once a month or twice a month depending on the month.
Open Different Accounts Or Jars
Open Different Accounts Or Jars
At banks such as MoneyYou and Knab I can open jars or different (savings) accounts without it costing me more. As a result, as soon as I receive my money, I divide my money over these jars and then my money has a destination and then I can no longer spend it on things I don't need.
Pay Myself First
Pay Myself First
I already apply this principle in my company, but now it must also happen on my private accounts. So every incoming money I will allocate a percentage to nice things jar and to investment jar in addition to a percentage of course for fixed costs and other jars.
Patience, Don't Buy Immediately
Patience, Don't Buy Immediately
I put together a list of things I want and then I can budget to buy them. But even more importantly, if they are on that list, it becomes clear whether I really want them or not. Maybe after 30 days I think leave it I don't want it anymore and then I have saved again money.
Make It Harder For Myself To Make Purchases
Make It Harder For Myself To Make Purchases
For example, remove my payment details from online webshops, so that I have to enter them again with every purchase and therefore think about whether I really want them, because I have to do something for it and then I do it less quickly.
Make A Mood Board
Make A Mood Board
I Made a mood board with my big dream on it and hang it somewhere insight, so that I am constantly reminded of my dream and save money for it instead of spending it on things I don't need. Get rid of all those fixed costs and choose freedom in buying the things I really want like the site of Porterenee is advising and I support!
Related blogs on my website
Related blogs on my website
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