Hey all! I have given my self a huge goal to work towards and am looking to you guys for help and encouragement. I want to be debt free (pay off $18,000 AND save up an addition $9000 to take my family to Disneyland as a reward for all the hard work they did.

Think I can do it? Our yearly income is about $26,000 a year so for us this is HUGE!!

Any tips, ideas, or thoughts on how to save money, cut back "find" money to put towards my goal??

Thanks!!

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That is a huge goal!!! I do see that you have given yourself a long time though so that is good. I am sure you can do it. You may want to break it down into smaller sub-goals though to help keep you motivated.

Good luck!

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~Happiness is a large family~

can I ask what you mean buy smaller sub goals?

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If you haven't already, I would suggest reading Dave Ramsey's "The Total Money Makeover"! I heard about his book on this site and after reading it decided to start working MUCH harder than I had been to pay off my debt. Basically he suggests baby steps and I'm on baby step #2 which is paying off all your debt (except your house). Our debt is mostly on 1 credit card, but also in the form of our car payment, and a student loan, plus a couple of little credit cards. He suggests paying off the smallest balance first so that you see the progress! To make myself feel better I have labeled each debt 2a, 2b, 2c, etc. In the past 3 months we've paid off 2a & 2b! They were little mini-accomplishments that helped us continue on with the little sacrifices! I'm assuming this is what Happymom meant by breaking it down into sub-goals.

Is your debt one big debt to something (i.e. credit card)? Or is yours like mine (credit card, student loans, car pmt, medical, etc)? If it's like mine, Dave Ramsey & I would suggest listing them from smallest payoff amount to largest. Pay minimum payments on all the debts and pay as much as you can extra toward the smallest debt first. Once that smallest amount is paid off take all the extra (the minimum pmt + the extra amt) from the first debt and apply it to the 2nd, and so on!

You can do it - it might take a while - but it can be done! As for suggestions? You'll find a TON of money saving ideas on this site. Dave might suggest taking on an extra job if possible, sell off anything you don't need (like if you have a boat or motercycle sitting around), have a garage sale, etc! Anything you can do to make money! And of course there's the other side too. Do anything you can to save money! Eat every meal at home and plan out those meals, etc. Turn off cable & internet, get rid of cell phones, etc! Just depends how "gazelle intense" you are (a term from his book).

Anyway, I could go on and on!
Good luck!!

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Stay at home mom to my 3 boys... ages 5, 3 & 1!

I can do all things through CHRIST who strengthens me. Philippians 4:13

Pretty much what the previous poster said. If you have several small debt, make a goal to pay off one at a time. For saving, maybe a small celebration for each $1000 you save. Just so you can see that you are meeting your goals, it will keep you motivated!

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~Happiness is a large family~

Well definitely get DH on board - you won't be battling alone and you can offer each other support and encouragement when the tough times come (believe me, they come). Also, keep a tracker, and reward yourself for the steps you take (such as every $1000 saved), even if it's something small like going out for ice cream or something. Like my mom said to me when I was younger, "how do you eat an elephant? one bite at a time." Put extra money you have over your budgeted expenses (even if it's $20) into savings right when the paycheck comes and then do everything you can NOT to go back and dip into it. Good luck!

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If the longer term goal is having money, then the shorter goals should be reducing spending. It doesn't help to say that you want to pay off a hundred extra dollars next month, if you don't know where it is coming from.

List every cost saving change you can think of and estimate how much it really saves. Which ones can you really do? That gives you an idea of how fast you can reasonable attain the long term goal.

Big ones to consider are moving to a cheaper place or downsizing if you own your own home. Move closer to work. Sometimes quitting work is a cost saver if commuting and daycare and dry cleaning and such could be saved. Going to one vehicle can save a load on registration and upkeep.

All the other things suggested can make a big difference too. Maybe intead of internet surfing, a really productive activity could replace it. Make a hobby pay. Get with your friends and family to share rather than purchase tools, layndry facilities, produce. Take in a boarder.

There are endless ways. Good luck.

Cathleen

Another recommendation for Dave Ramsey.

BS#2 here, plugging away. Have paid off $18K in debt this year so far. It takes a creating a plan, working that plan and focus.

Good luck!

i think you can do it!!! if you put your mind to it anything is achievable you go!!! i like the idea of smaller goals along the way so you don't loose sight of the big picture!!

can anyone give me an example of what you mean by smaller goals?

I know i'm dense!!!

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