First 30 Days of Debt Payoff | ADHD Money Management | 97

0:00 All right, So most people don't fail at paying off their debt in year 1. They fail in month one because we are not trying to fix everything. We're trying to build some traction so that we can eliminate the debt that's burdening us, but we need to start with First things first. So today I'm going to walk you through what to do in your first 30 days and what it actually looks like. And it is simple, boring, but it's effective. Hey there. I'm Jules the budget nerd, and welcome to the Debt Rebel show.

0:31 This is the place where working families like yours learn how to stop living paycheck to paycheck. Crush. Debt for good and build a life where money actually works for your family. In about 15 minutes, I'll share practical family budgeting tips, tough love strategies, and actionable steps to move. Toward debt free living without. The fluff, the shame or the confusion. And I know a thing or two about this. My family and I have eliminated over $107,000 in consumer debt and that was after I got my degree in economics.

1:03 So stay tuned. This is going to be a great. Episode So grab that coffee your planner. Whatever you need to make this a great experience. Maybe a snack if you're like me. And let's make your money work for your family. Chaos can feel productive, but that is a lie. So we're going to talk today about how do you set up the 1st 30 days and so that you can make progress towards your financial goals. Okay, So what does month one, What are the 1st 30 days when you start a debt, your debt elimination journey?

1:38 The last episode we talked about the different ways that you can that you can pay off your debt, whether it's the debt snowball, the debt avalanche or the less encouraged, which is the wing it method. And so I want to talk today specifically about those first 30 days because this is not a time to wing it. The first 30 days is kind of like building your foundation of your house. So you're building the foundation of your debt elimination plan. And the first thing is we're not going to focus on paying off a debt.

2:09 And you're probably like, what are you talking about? This is the worst advice ever, but stick with me. I have, I'll explain. So we're not going to focus on paying off a debt or being perfect. We are going to focus on getting stability, consistency, and then proving to yourself that you can do this. Because if month one works, then month 12 will definitely take care of itself. So thank you for, I'm so excited that you're here because on this show this year we are paying off $1,000,000 in debt. So it starts with that first step.

2:45 So you have made the decision to pay off your debt, which is huge. You've got clear on your numbers. And if you haven't, go back and listen to episode 90, 95 or 96. And then you're here because, you know, all right, I need to know what to do in those first 30 days. So this is going to be the practical breakdown of what to do in those week by week. So week 1 and one thing that I highly encourage is it doesn't take a lot of time to do this. It's going to take some effort. So you want to schedule it, but also know that it's these, these tasks are broken down into smaller bites so that you don't have to sit down for hours at a time to figure this out.

3:34 Because we, I know as busy parents, sometimes we only have 15 minutes, right? Or maybe we're waiting in the pickup line or maybe we're getting rid, you know, our kids getting done with practice or something like that. And we have 15 minutes. So first thing in week 1 is to lock in on that plan. So choose that pay off method. And now the hard part here is don't switch. So once you've decided on the plan is stick with it because when we go back and forth switching up our plans, that's when we can burn ourselves out.

4:06 But also we're not going to be making any kind of progress. So you're going to pick that that first, first debt to work on and then set up minimums on all of the others and set those up on auto pay if that's something that you're comfortable with. So this is about reducing decisions and not creating new ones. Now, first thing first, if you do not have $1000 emergency fund set up, that is like week 0. So focus in on that before you pay minimums on all of your auto pays or excuse me, pay minimums on all of your debts unless, unless you have that $1000 emergency fund set up.

4:46 Once you have that set up, then that's when you can get into your debt, your debt elimination claim. Whichever 1 you choose, highly encourage that. At Snowball, that's what we used very first. Part of the debt elimination process is creating that starter emergency fund. It's a little one, it's only $1000, but it's going to help you keep from going to credit cards and making the situation worse. So week 1 is to get that in place. If you don't have that in place, then maybe you're going to delay the rest of your plan by a few weeks.

5:19 But getting started with a emergency fund is going to be vital. So check out episode 82 if you want some more, some more guidance around that. But The thing is very important. Do not skip this step because this is going to be the thing that's going to keep you from digging that hole a little bit deeper and where it'll feel a little less like quicksand because you can, if you things happen and you need to go to it, then it's available. Like growing up, so I grew up in the Pacific Northwest and if we had an umbrella, if you brought an umbrella with you, it wasn't going to rain.

5:54 And so that's what this emergency fund is for too, is things become less urgent when you have the money available. So do not skip this step. And then you're going to identify some expenses within your budget that are something that you can pause for right now. It's not necessarily that you're going to cut them out forever. And if you have the Debt Rebel Starter Kit, there is a list of things that you can do to help get this $1000 saved up quickly. Because if you need some, some quick tips, that's the best place to go to get those.

6:26 And then we want to prepare for real life. So making sure that your your budget has groceries and gas and you know your utilities, those types of things are set up in there. And we have to feed our kids. We have to feed ourselves. We have to put gas in our car if we are going to, you know, if we need to get our kids to school or transportation for us to get to and from work, that type of stuff. So you want to set that up in week 1 because when we try and pay off debt without a buffer, it's just anxiety with a spreadsheet or a budgeting app, whatever you'll use, whichever one.

7:02 And then the next is we're going to lock in your debt payoff plan method. Now, in the last episode we talked about the three different options and so pick one and stick with it. I personally used the debt snowball and that's what I teach inside the membership. So if you're if that's the method that you're choosing is once you've got all of those listed out based on the minimum balance from smallest to largest, you're going to set minimums on everything except for that top one. And then you're going to get to work paying that off.

7:35 So this is about reducing decisions and not creating more. So, you know, what is your next, what debt you're working on, and then what is the next debt that you're going to be moving on to when that first one's paid off? So what happens after that? Right. OK, so this is going to be week 3, depending on how long it takes you to get these things set up and in place. And you're going to build a habit loop for yourself. So that is scheduling a weekly check in, whether it's, you know, 10 minutes up to 15 minutes, maybe it's while you sit and have your coffee on Friday morning or Monday morning, whatever you want is figuring out a time that is going to be consistent.

8:17 So same day, same time every single week and just check in on your money. So this is good because it creates it creates a habit, a routine for yourself. It helps you adjust without judgment and it also helps you track your progress. And so I have a debt payoff tracker that you can download and you can find that on my website, jewelsthebudgetnerd.com. And it will help you keep track of where your where your debts are and how how much progress you're making on those so that you can celebrate those wins.

8:53 And that's one of the things that we love doing inside the alliance, because the rest of the world's not going to celebrate those things with you. But I know how big of a deal it. Is to. Make an extra payment. Maybe they weren't expecting in the past, you weren't expecting to be able to pay an extra $100 on your credit card. But now you have looked at your things, you've gone through the debt rebel, Sir. And it's only like 10 or 15 minutes. It doesn't have to be a lot of time. And then the next is to week 4 is this one, this one seems a little bit different, but expect resistance and plan for it.

9:26 So just like I said with the umbrella, if I have the umbrella, I'm not going to need it. So this is the part of the journey where your motivation might dip a little bit and that's absolutely normal. And so that's why having a community of people that are also doing it with you and maybe they're a step or two ahead of you. They can encourage you and remind you like this is what it's, this is what it's about. And so because life happens, we know life is going to happen. We just don't know when. And so that's if we kind of expect that, then it's a little bit easier to navigate it.

9:59 And then making sure, like I said, having that support because this is when you're going to need it is in week 4. And so if you're like me and you're someone that's like, I really want to just do this myself. I was on a call earlier today and with some other business owners and we're just talking about how hard sometimes it is to ask for help, help. And I think that that's also the same case when we're in the situations where maybe we might have felt like we should know better or, you know, maybe we're burdening someone else, that kind of stuff, that those are all lies.

10:27 So remember that needing help doesn't mean that you're failing. It just means that you need some extra support. And asking for help is absolutely not a weakness, it is a strength. So, OK, so let's talk about what usually derails people in month 1. So this is trying to overhaul everything. This is maybe not talking to your partner about, you know, what you're working on, your goals, there's no accountability or you haven't given yourself margin to make mistakes. Now, this one for myself is very challenging.

11:04 It's a little bit easier now, but if we make a plan that only works for perfect months, then no plan is ever going to work at all. So it's important to give yourself some grace and go, you know what, sometimes we're going to overspend in a category. Sometimes we're going to go to the drive through because we forgot to, you know, pull out the chicken to make dinner or something like that. So let's let's create some space for ourselves to make mistakes and then continue on with our plan because life happens.

11:36 So why is having support so vital in this process? Because it will change the timeline for you. So for myself, for my husband and I, it took us six years to eliminate that $107,000 in debt. Now, if I had support, that would have been so much less. So because support is going to provide for opportunities to adjust faster, we're going to be able to see things a little bit faster because we're not operating in a vacuum. We're going to have fewer restarts. And so those become speed bumps instead of walls that we run into sometimes.

12:16 When it comes to starting something, there's going to be less emotional fatigue because we're not just sitting with our own stuff. We're going to be able to reach out and say, hey, I overspent at Target this week. And I think This is why. Let's let's talk it through. So there are people that are going to be walking the same journey with you and it's about progress and not perfection. And so that's why having support is so vitally important because we don't need more willpower. If we had more willpower, we wouldn't be debt free, right?

12:49 Or if we had more willpower, we wouldn't have this debt, right? So we need a place to be able to show up, show up consistently and show up often. So if all of this sounds like something you're like, hey, I don't want to do month one alone, then join us inside the membership and you're going to get the support that you need to eliminate this debt. Create this plan for yourself and move forward so that debt can be a thing of the past for you and that you can show up differently for your friends, family and loved ones.

13:23 So remember, we do not need to be more intense. We just need to get some more reps in and and progress compounds quietly. So this is where, you know, we talked about, you know, the beginning of the year. It's like, OK, you know, don't miss a Monday going to the gym and that kind of stuff. Momentum isn't loud, it's just consistent. So let's work on this together and I'll see you inside the membership. Thank you for tuning into the Debt Rebel show today. Ready to take your family budgeting to the next level?

13:55 Stop that paycheck to paycheck grind and start living debt free. Head over to my website debtrebelpodcast.com that's. DEBTREDEL. Podcast.com to grab resources, tools and tips to make it happen and don't. Forget subscribe. Leave a review and if you know another family that will love hearing today's episode, it would be such a gift for both of us, your friend and me, if you share this episode and remember your debt free life starts with one brave step and I'm cheering you on every step of the way.

14:31 We'll talk soon. Debt Rebel.