➡️Stop Beating Yourself Up by Letting Debt Weigh You Down!🏋️
Have you ever experienced moments where your financial goals seemed unattainable?
Do you have a trusted inner circle of friends with whom you feel comfortable discussing struggles with debt or your aspirations for achieving financial freedom?
Navigating the complexities of money management and striving for financial security can feel isolating. It’s difficult to be vulnerable with family and friends discussing such personal topics as your financial dreams and challenges.
But did you know that Financial Self-Care is one of the seven pillars of holistic health? If you haven’t considered this aspect of self-care before, you’re not alone. However, it’s crucial because struggles with debt and financial uncertainty can impact your financial well-being and your emotional, physical, and social health.
Emotional Relief
Debt can feel like a heavy burden that never lifts, causing stress and anxiety that seep into every part of your life. But imagine the emotional relief that comes with seeing your debt decrease month by month. The weight lifts off your shoulders, replaced by a sense of control and hope for your future. Prioritizing your financial well-being can transform feelings of helplessness into empowerment and confidence. 💫
When I was in my 20’s I began ‘adulting’ with a transition to Huntington Beach, CA, I felt overwhelmed by the cost of renting a one-bedroom apartment and not having furniture - other than a bed and dresser drawers. Going out to eat or getting some fast food was out of the question on my tight budget. I had a new career in a starting accountant's salary and I needed an additional solution to save for some furniture. Sitting on a tri-folding lawn chair meant for sunbathing wasn’t the comfort I imagined for relaxing in the evening.
It was tough starting in this adult world. At first, I barely scraped by, and the constant worry affected my sleep and overall happiness. Then, I decided to take control. I created a budget, tracked every expense, and picked up a side hustle. I found a side gig selling holiday decorations with Christmas Around the World, which brought in extra money and was even a lot of fun. It was a terrific way for me to meet new friends, too. Gradually, I saved enough money to buy a few furniture items to relax in and eventually a dinette set. The sense of accomplishment and peace of mind is indescribable. If I can do it, so can you.
As you focus on the benefits of financial self-care, remember to pay attention to each pillar of holistic health to cultivate a balanced and fulfilling life. Can you picture yourself feeling financially solid and creating the life of your dreams?
7 Pillars of Holistic Health
Physical
Nutrition
Emotional
Social
Spiritual
Intellectual
Financial
Environmental
Prioritizing your financial well-being can alleviate stress, anxiety, and hopelessness, replacing them with feelings of joy, freedom, and hope for your future.
Are you tired of feeling weighed down by debt and constantly beating yourself up for financial missteps? If you nodded with a ‘yes’, it's time to break free from this cycle.
I’m here to empower you on your journey to financial freedom. Say goodbye to self-criticism and welcome a bright future filled with confidence and freedom around your finances.
Demystifying Consumer Debt
Having debt and feeling shame around this issue is common. The antidote to the depression and heaviness debt can bring is to start believing in yourself and your ability to do hard things - and take control of your financial burden.
Demographics of Debt in the United States
If you are curious about the demographics of debt in the United States, here’s some interesting data from Debt.Org as of December 2023:
Average Non-Mortgage American Debt by Age
18-29-year-olds: $12,871
30-39-year-olds: $26,532
40-49-year-olds: $27,838
50-59-year-olds: $23,719
60-69-year-olds: $16,661
70 and older: $ 9,827
Understandably, younger groups have debt as they establish their careers and homes. However, understanding where your money is going is key to gaining control over spending.
Gaining a Better Understanding of Your Spending
To better understand your spending, start by budgeting and analyzing your monthly credit card statements - this step is crucial to reducing debt. To cut down on spending, you must first recognize patterns. Once you identify these patterns, you can set goals and intentionally change your spending habits.
Credit Card Balances by Age:
Credit card debt is spread across all generations, with younger Americans having the smallest share of the total:
18-29 years old: $80 billion
30-39 years old: $1.9 trillion
40-49 years old: $2.2 trillion
50-59 years old: $2.2 trillion
60-69 years old: $1.7 trillion
70 and older:: $1.2 trillion
It is concerning that the retirement-age demographic holds significant credit card debt despite having the greatest earning potential time behind them. Adopting a debt-free goal earlier in life will pave the way for your brightest future.
One thing in life is certain - there’s no certainty in life. We will all face times when we are blind-sided by unforeseeable expenses. Most of us will not escape some debt, but positioning ourselves to control what we can and save for the future is crucial. Even if you have to convert a designated savings account to cover an unforeseen expense, having a financial cushion can make a significant difference.
Auto Loan Debt
Here’s the percentage of drivers in each age group with auto loans, along with the average monthly payment for auto debt, according to Experian:
Gen Z (up to age 26): 20.8% have no loan, 72.4% have one loan, 6.3% have two loans; average monthly payment is $429
Millennials (27-42): 36.8% have no auto loan, 52.9% have one, and 9.3% have two; the average monthly payment is $547
Gen X (43-58): 38.8% have no auto loans, 45.9% have one, and 12.6% have two; the average monthly payment is $637
Baby Boomers (59-77): 49.9% have no auto loan, 40.3% have one, and 8.3% have two; the average monthly payment, is $570
Silent Generation (age 78 and up): 65.7% no auto loan, 30.6% one loan, 3.3% two loans; average monthly payment, $477
Consider purchasing a well-maintained used car for your next vehicle to lessen the debt. The key is to find a reliable trusted source to help you weigh the options and a mechanic to check the used vehicle's condition. There are pros and cons so do your homework!
Check your mindset around your vehicle purchases. Some people purchase a car every few years or when the mileage reaches a certain number, believing it’s normal to have a monthly car payment. But what if they’re wrong?
The last two vehicles I purchased were barely a year old. They were great purchases, and I kept the prior car for 13 years and currently am driving a 12-year-old car. I maintain them well, and they have been reliable. Both were paid off quickly with extra payments when possible, allowing me many years without car payments.
I share this not to brag, but to show that you don’t have to be like the masses with car debt. Dave Ramsey says “Live like no one else so you can live like no one else.” If you need to take on a side job and cut back on discretionary spending, take action and do it. Pay off your debt and enjoy the financial freedom you create for yourself.
This is how you create YOUR Superhero memories.
3 Tips To To Start Reducing Your Debt
Track Your Debt Monthly:
Begin by using a monthly tracking sheet to monitor your debt. This step is non-negotiable if you are serious about tackling debt and experiencing financial self-care.
Review and Adjust Your Budget:
Examine your monthly spending to identify areas you can trim or eliminate, such as unused subscriptions to TV streaming platforms or automatic online store subscriptions.
Boost Your Income:
If you have extra time, consider picking up a side hustle and direct your additional earnings toward paying down your debt.
Start a Savings Habit
In addition to these tips, if you don’t already have a savings habit, start this month by putting a small amount into a savings account. This can grow to help cover unexpected expenses like medical co-pays and car maintenance, reducing the likelihood of incurring new debt. Building an emergency fund can prevent future financial stress and provide a safety net.
There isn’t any magic in getting control of your finances. While it’s not easy, the remedy is simple: spend less than you earn.
As you diligently track your debt, adjust your budget, and find ways to boost your income, you will notice a transformation in your finances and yourself. By building healthy habits, learning to say ‘no’ to things that no longer bring you joy, and continuing to build wealth for your future, you will pave the way to financial freedom and a brighter future.
Remember, every small step you take today brings you closer to the financial security and peace of mind you deserve. Stay committed, stay focused, and watch as you create a debt-free life filled with opportunities and joy.⚡️
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To Your Financial Health! 💰
Wendy