2894: Dealing with Debt In A Healthy Way by Andrea Joy of Saving Joyfully on How to Reduce Money Stress

[00:00:00] Have you ever noticed how a calm mind can really set the stage for a good night's sleep? That's the idea behind our new podcast, Good Sleep. Greg, our host from Optimal Relationships Daily, is here to help ease you into a peaceful night's rest with some positive affirmations. And these affirmations aren't just comforting, they can help ease anxiety and nurture positive thoughts, setting you up for true good sleep.

[00:00:24] So, press play on Good Sleep Tonight because a good tomorrow starts with a good night's sleep. Just search for Good Sleep in your podcast app and be sure to pick the one from Optimal Living Daily. This is Optimal Health Daily, Dealing With Debt In A Healthy Way by Andrea Joy of SavingJoyfully.com and I'm Dr. Neal.

[00:00:47] Hey there and welcome back to our weekly bonus episode. Remember, this is where I share an episode from another podcast in our network. And today's comes from Optimal Finance Daily. So, with that, here's Diana reading to you and her commentary as we optimize your life. Dealing With Debt In A Healthy Way by Andrea Joy of SavingJoyfully.com

[00:01:15] Many of us have accumulated debt and have grown to rely on debt in many ways as we moved into our adult lives. Debt can seem necessary at times and almost normal, but that does not have to become the normal way of life. What you need when it comes to working towards your goal of financial freedom is to develop a plan that works for you. There's no magic formula for dealing with debt and no easy way out. The best things in life do not come easily, but they are always worth the struggle.

[00:01:44] These are some key things to remember in developing your plan and actually making it work. Sacrifice, consistency, hard work, make a plan and lay out your budget. You must be willing to finally make some changes in the way you live your life day to day. You also must determine what you'll choose to prioritize and what you can let go. Certain things may need to be removed from your daily life, at least temporarily.

[00:02:11] Whether that's your Starbucks Frappuccino, consistently eating out, your bi-weekly mani-pedi, or your spending habits of chasing the best deals. Getting a great deal can be an awesome feeling, but sometimes chasing a good deal can become toxic in our financial lives. That weekly trip, even to budget-friendly places like Big Lots, Dollar Tree, TJ Maxx, etc. can lead to unnecessary spending that can cripple your financial efforts. Why we must sacrifice.

[00:02:42] Sacrifice must be made in our lives to begin to see results in many situations. When you go on a diet, you must begin to find areas that you sacrifice different food and beverage items you once loved. This may not have to be forever, but these changes have to happen to be able to achieve different results. If you continue to live the same way you are now, you'll most likely see the same results you're seeing now. You can earn more money, but when you earn more, many tend to spend more money also.

[00:03:13] Becoming more consistent. Consistency must become something you strive for in your finances as you begin to move forward. Consistency in paying your bills, saving money, and your purchasing habits. Realize that the long-term consistency involved in how you manage your finances is where long-term changes and real results begin. Hard work is necessary. Hard work must happen to see financial results.

[00:03:40] You may need to work more hours, do more services yourself that you once paid others for, or even pick up a second job. Something as simple as packing your own lunch for work every day may seem like a lot of work, but it can save you significantly over a year's time. This might be some of the sacrifice and hard work that's required to get your finances where they should be again. You need a plan and a budget. Making a plan and developing a budget are crucial steps to starting to get your finances in order.

[00:04:10] You need to see the whole picture in front of you. Every dime coming in and every dime going out should be accounted for and used wisely. This can help you determine the ways that you're failing every day to see your money slipping. Often your money can be slipping away silently in ways that can be prevented. Making and following a budget can help hold both you and your spouse or partner accountable to your financial goals.

[00:04:36] Once you've established these guidelines and began your journey, you're on your way to a far better place. This is when the hard work, sacrifice, consistency, and your plan can really begin. This is when you see the full picture of your financial situation as scary as it might be, and you can begin to work on your financial future. Each situation is different, and each person requires different things to get where they need to be financially. These are some basic things to aim for and to begin to help you get on track.

[00:05:05] I'm not a financial advisor, but I can tell you that many times seeing a financial advisor is important. We can make a lot of mistakes with our finances if we don't seek guidance from professionals. Many credit unions offer debt and financial counselors that you can see for guidance. You can look for one of those in your area or seek advice from a trusted financial advisor. Beware, however, of debt consolidation companies that may not have your best interests at heart.

[00:05:32] Sadly, many companies make a business out of taking advantage of people in debt. Credit card companies, debt consolidation, and payday loan companies are some of the worst offenders. Always weigh all of your options and carefully consider these things before getting involved. Getting out from under the debt they place you in to supposedly help you is often worse than the debt you are already struggling with.

[00:05:59] You just listened to the post titled, Dealing with Debt in a Healthy Way by Andrea Joy of SavingJoyfully.com. Thanks to Andrea on these ideas around handling debt. As someone who got out of 30 grand of debt in 11 months, this topic is very close to my heart. One thing I'd like to offer up here is that our internal dialogue about our debt and spending has a powerful effect on our actions.

[00:06:26] So if we're telling ourselves that we have to make great sacrifices, that it's going to be a struggle to get out of debt, that it's going to be a ton of hard work, there's a tone of negativity there that might thwart our efforts. What worked well for me was staying engaged with the excitement of paying off my debt by focusing more on what I'm gaining versus what I'm losing.

[00:06:50] I think framing things in a positive way and genuinely having a real preference for my frugal habits versus seeing them as a sacrifice or burden made the process so much more enjoyable. So for example, I started cooking nearly every meal I ate and really enjoyed my experiments in the kitchen. When I would order in or go to a restaurant, oftentimes I didn't feel the food was worth the cost.

[00:07:18] This might sound conceited, but I often feel that I can make something better than what I can buy from a restaurant. Or when it comes to clothing, for years, most of my clothing came from clothing exchanges with my friends. They were so much fun and totally free. I actually much prefer hosting a clothing exchange to going shopping or buying new clothing. With every challenge comes incredible opportunity to learn about ourselves and grow into our full potential.

[00:07:46] Yes, debt reduction is a challenge, but it doesn't necessarily have to be a struggle. And that's a wrap for the Sunday show. Have a great rest of your day and I'll be back for the Monday show tomorrow where your optimal life awaits.