Do monthly payments drive you nuts? Have you been meaning to cut your expenses, or get out of debt? This year I am almost 100% payment free except for my cell phone, electricity, gas, and water. How in the world is that possible, you ask?
Here’s how I eliminated almost all of my monthly bills.
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I know, money can be all-around overwhelming.
Money can seem totally unpredictable and completely out of your control, but it shouldn’t be. Most of what you spend is entirely known, literally fixed, and completely in your control. Each month, it isn’t a shocker how much your rent or mortgage is, you signed up for that, right?! No one forced you to get cable with a gazillion stations either.
When it comes to cutting expenses there are two main types of expenses.
You have your fixed expenses that are the same each month and flex expenses that vary from month to month.
No one likes bills, so I actively choose to have as few bills, or fixed expenses, as humanly possible.
How to eliminate monthly bills- especially debt.
It’s awesome being almost 100% payment free.
I wasn’t always payment free, right outta college I bought a really nice car, with a not-so-nice monthly payment of $560 and my student loan payments where $135 per month. Not bad, considering the average student loan payment is $351, but still, I was spending almost $700 total towards debt monthly.
Realizing quickly there are a lot better uses of $700 per month, I got rid of the debt as fast as possible.
And as Albert Einstein said, “Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.”
I didn’t want to waste any time paying interest, I wanted to earn interest, and each month free up as much cash flow as possible for my money to work for me versus against me.
Now, along with being debt-free I don’t have subscriptions (except for my phone).
I don’t have cable, a gym membership, or even online subscriptions to stream music or shows. I don’t miss cable- I happily will read a book, or watch free videos online. And just because I don’t pay for a gym doesn’t mean I don’t value exercise. In just two weeks I will be running a half marathon, wish me luck! I’m training and running outside for free:)
This year, I have internet paid for as a company perk, and my car and health insurance are deducted from paychecks.
I live in a tiny rent house (more on that later) and received a cash discount for paying the year’s rent upfront.
With my take-home pay, the only monthly obligation is for a cell phone and utilities.
During the fall and spring, you’ll often find my thermostat off completely, so the electricity is pretty minimal.
Crazy isn’t it?! Life doesn’t have to be expensive.