8 Strategic Steps for Staying Out of Debt

If you have been following The Paleo Mama for a while you have probably read my blog post about how we paid off more than $27,000 of debt in just 6 months! It’s been one of my most-followed posts, and I know it’s because so many people feel buried in a pit of debt and just don’t know how to get out of the debt. We have now paid off more than $50,000 worth of debt and are proud to say that we are DEBT-FREE! 

We started the journey to financial freedom nearly 2 years ago, and we have realized that staying out of debt is just as important as getting out of debt. We believe that everyone can do this, but it takes real effort, and not everyone will be able to use the same principles as everyone else. We have different lifestyles, different sources of income, different family needs, and different dreams and goals for our lives.

However, in this blog post I want to give you 8 strategic steps for staying out of debt that we think will work for just about everyone. 

1. Make an honest assessment of your spending and develop a budget that supports your family on the income you have available.

A lot of people dread the idea of living on a budget that tells them when and how to spend every penny they make. But that’s not really what a budget does. A budget is your fastest way to take control of your money, get out of debt, and begin moving toward your goals and dreams for your future.

When we became debt-free and were ready to create a realistic budget for our debt-free life, we followed Dave Ramsey’s principles in his book The Total Money Makeover.  He has a great “Guide to Budgeting” Tool available online that you can use to set up your budget. There are others available, but this is the one that works best for us.

2. Use the “envelope” system for your weekly cash needs.

Every week we put the budgeted amount we have for weekly needs in envelopes—one envelope for each need. There is an envelope for my personal needs, my husband’s personal needs, groceries, entertainment, and dining out. When the money runs out…it’s out.

3. Carefully plan your grocery spending and meal planning for each week.

As you know, we are an 80 percent “Paleo Family.” It is important to me to provide my family with whole foods that are nutritious, as natural as possible, and free of preservatives and other junk. I’ve developed some secrets to saving money while eating Paleo. Some of these include: 

1. Doing an online meal plan service where they send me recipes each week and a grocery list! 
2. Raising our own meat chickens and egg-laying chickens. Before we raised chickens, I bought only whole chickens. I use every part—even the bones, which makes delicious, healthy broth.
3. We buy our beef in bulk, purchasing 1/4th-half of a grassfed cow at a time.
4. I shop local and in season, using coupons wherever possible.
5. We grow as many of our own fruits and veggies as possible, and if we don’t have them in our garden, we pick our own produce. 
6. I save money in other areas of our life so that I have money to splurge on healthy food.

4. Find economical ways to meet your family’s wardrobe and home decorating desires.

Frank and I are very frugal with our money, and we both come from homes who felt the same. My mother dragged my sister and me with her nearly every Saturday as she made the garage sale circuit. Most of our play clothes, toys, and home decorating items came from garage sales. No, they weren’t old hand-me-downs—many of them were originally high-priced items that had barely been used. 

Even today, when it is much more possible for us to shop at first-rate stores, I buy much of what we purchase USED from consignment shops, outlets, local thrift stores, and online websites.

5.  Learn to make many of your personal care products and your home cleaning products. 

I make as many home products as possible. This is such an important money-saving step, and will free up your budget money for some of those saving and dreaming goals you need to have. Some of the products I make myself include: 

• Mouthwash and coconut oil bites for oil pulling
• Toothpaste
• Wool dryer balls
• Body lotions, rubs and salves
• Facial lotions and beauty products
• Shaving cream
• Deodorant
• Soap
• Floor cleaner and other Household cleaners
• Laundry detergent

6. Establish a regular method for having an emergency fund and savings plan

Frank and I are not only concerned with having enough money to meet our needs today—we are so determined that we will have a plan for emergencies big and small, and savings for important things like paying off our house, investing for our kid’s college expenses, and preparing for our own retirement. 

We have learned that we will only save money when it becomes an emotional priority. It doesn’t matter what you make—you can save money! We were motivated to start saving by studying Dave Ramsey’s Financial Peace University. Here is one online lesson to whet your appetite for saving.

7.Find an additional source of income that is home-based and potentially income-producing.

Think about finding a creative way to bring more income into your life. When I first considered this, I began blogging, not sure how profitable it would be, but wanting to do it not only to earn income, but because I was passionate about the things I wanted to blog about. This is something you may want to try also.

When I was introduced to essential oils I became just as passionate about their value to my life, and their potential for providing me with more income. It’s important for you know that it is their health-giving potential that fuels my passion to this day. They have indeed provided me with income far beyond what I anticipated, but it only comes with determination, passion, and hard work! Working with this company has helped retire my husband from his job and come home and join the business. If you are ready to take on a new potentially financially rewarding venture, I can help you get started.

8. Get rid of your credit cards.

Credit card usage has become a way of life in America. Debt is the most aggressively market product in the history of the world. We are not suggesting that you get rid of every single credit card you have, but we are advising you to get rid of most of them and set boundaries on the 1-3 that you hang on to. That includes:

• Only buy on credit when you have the cash to pay for it.
• Pay off your credit card debt in full each month
• Consider only using a credit card for recurring payments like utility bills, cell phones, and other similar expenses.

By doing that, you will not get imprisoned in credit card debt and the high interest rates that steal your money.

I want to close this blog with Dave Ramsey’s “7 Characteristics of Debt-Free people.” This describes who Frank and I want to be, and I hope you will want to have these characteristics also.

1. They are wise.
2. They are patient.
3. They are confident.
4. They are goal-driven.
5. They are responsible.
6. They are not materialistic.
7. They are willing to make sacrifices