Tortoise & Hare Get Out of Debt |
By Stewart Pelto on August 10, 2010
.jpg.aspx?width=75&height=75) You want to get out of debt for good but are unclear on how to go about it. Your first move is to draw up your current budget to see where your money is going and then decide where you WANT it to go. Cut back on luxuries and be creative when finding ways to save money each month. Then choose to be either the tortoise or the hare.
TORTOISE: You sentence your debt monster to a slow but sure destruction because to you, it’s better to win the race eventually than not at all. It’s not about drastic measures that are unsustainable; it’s about a life of frugality and patience. You make tuna casserole for the week’s lunches instead of eating out. You keep the house warmer in the summer and colder in the winter. If you take the tortoise approach, you commit to a lifestyle that slowly squeezes cash from luxuries and pours them over debts in the form of increased monthly payments.
HARE: Forget that gradual stuff – you are tired of your debt right now! Sure, your debt is larger than the tortoise’s, but that’s only because you treat yourself to nice things even though you aren’t rich! To make amends, you put yourself on the fast track: no more movies, no more eating out, no more nothing until you are debt free!! The Captain Skipper boat, the secret agent car, and the country club subscription are all up for sale and will be used as fuel to boost your speed to the finish line. It’s not about increased monthly payments, it’s about MAXIMUM monthly payments.
This story doesn’t end like the other one does, though. It could be the tortoise who tires of his steady approach to debt freedom and naps by the side of the lane with his lifestyle unchanged! The hare’s extreme approach could help him cross the finish line… only to find himself back in the starting blocks some months down the road. Whatever you do, pick your style, stick to it, & know that debt freedom is so much better than anything you own.
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