Do you ever feel like you’re losing your commitment to get out of debt? Try this on for size: create your dream budget, the one you could live on if you weren’t in debt.
Without a car payment and credit card bills, you could have several hundred dollars more per month—thousands every year. Save it, spend it—it’ll be your choice when you’re free of debt!
Here’s your mission:
- List all your debts. Don’t forget the credit cards, student loans, car payments, etc.
- Add up how much you’re currently paying on those debts every month (hopefully more than the minimum).
- Create a new budget that shows how you’ll be able to spend and save once you’re out of debt. Some of the extra money could go to fun things, but most should go into savings.
- Use this calculator to add up how much money you’ll have in your accounts after using your post-debt budget for a few years. For example, if you put $400 in the bank every month instead of spending it on a car payment, you could easily have $26,000(!) in cash by the end of five years.
- Daydream! Imagine the freedom you’ll enjoy with all that money in the bank. How you’ll have fewer worries, knowing you have a sizable nest egg. Instead of paying interest, you’ll be earning it, and your savings will continue to grow!
- Record what you learned about your future in your Adventure Journal. Remember, these aren’t merely hopes and dreams: this vision of a glorious, debt-free future will happen if you just stick to your plan.
You’ll gain Frugality Tokens for completing this quest, and you’ll also gain motivation. Anytime you’re feeling discouraged, go back and reread what you wrote in your Adventure Journal, and you’ll catch the vision again!
When you’re finished, play another round of Match for Money to pick your next quest.
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