Budget Calculator

These will automatically show if we see any areas for improvement

Look into ways to decrease this expense such as moving or getting a roommate. Or look into ways to increase your income.

The average cost of a fast-food meal has soared to nearly $12 per person. For a family of four eating out twice a week, that would cost $96 per week. That’s more than $400 per month. Now imagine throwing an extra $400+ toward your credit card debt each month. You would have your debt paid off in probably half the time. Obviously, you will need to buy groceries and cook at home. But the savings will be significant. Pack a lunch everyday to work. It’s one of the easiest lifestyle changes that can make a big financial impact.

If you’re struggling to pay back credit card debt, you need to pause all contributions to retirement. Credit cards often carry interest rates in the 20-30% range. While your 401 (k) might return 6-8% per year on average. Expedite your debt free date as quickly as possible. Then once you become debt free, you can resume contributions. Never borrow from your 401K or cash it out early. The penalties are severe and will cost you thousands of dollars. Paying off high-interest debt is often a guaranteed “return” that beats the market. Focus intensely and solely on this one goal. Trying to accomplish two goals at the same time can be a struggle. You might have better success juggling bowling pins while on a unicycle. Too often we hear people trying to build savings while possessing thousands in credit card debt. When it comes to financial goals, it’s imperative to focus on one goal at a time. Understand your priority. And priority is defined as a thing that is regarded as more important than another. If paying off debt is your priority, then all excess cash needs to go toward the debt. It’s ok to have some savings while in debt, but no more than $1,000.

We all love a good vacation. Especially to escape stress from working long hours. However, when you are significantly burdened by credit card debt, vacations should be eliminated. Dave Ramsey has a quote he repeats over and over with his audience when facing a financial hardship. “Live like no one else so later you live like no one else.” He implies that living a frugal lifestyle while paying off debt will allow you to enjoy the freedom later in life. Today’s sacrifices will lead to tomorrow’s fortune. Instead of spending money on lodging and airfare, discover cost-friendly activities within a 30-mile radius from home. For example, watch a sunset by a lake. Have a picnic in the park. Refrain from spending money vacations until your credit card balance reaches $0.

Perhaps the most “common sense” category to cut out of them all. Entertainment needs to be zero right away when experiencing a hardship. This includes movies, concerts, sporting events, golf and any other hobbies deemed unnecessary to survive. It doesn’t mean you need to be miserable. Alternatively, you need to find free fun things to do. Find free events in your neighborhood. Host game nights with friends. Temporary sacrifice gives you more control, stability, and confidence. Once you’re debt-free, you can spend on entertainment without worry.

We all need new clothes at some point. Otherwise, we would eventually be walking around naked. But do we have to purchase trendy, high-end clothing? Absolutely not. Take a glance at your closet. And then ask yourself is it worth staying in debt or getting into more debt to replace these clothes? Maybe what you have is good enough. Many people forget what they already have. Wear something you forgot about. Try new outfit combos with existing pieces instead of buying something new. Children constantly outgrow shoes, shirts and shorts. And they need to move up to the next size. Swap clothes with family and friends. Send your child’s hand me downs to one family and receive some from another family. Reducing clothing expenses is about being intentional – buying less, avoiding impulse purchases, and getting the most out of what you already own. It’s one of the easiest ways to free up extra money for goals like paying off debt.

Gifts are typically listed as a discretionary expense category. This means they’re not essential but are common and expected. Perhaps the majority of the spending on gifts occurs during Christmas. Additionally, you have birthdays, weddings, baby showers and graduations. Spending less on gifts doesn’t mean being less thoughtful. It means being intentional and creative. Communicate with everyone that you have credit card debt you intend to pay off. And let them know you can’t afford gifts right now. Hopefully, in a couple of years though.

Have a conversation with your church leader. Tell them you feel like a slave to your lenders. Many will support your decision to focus on becoming debt-free while still honoring your faith. Instead of cash donations, offer other ways to help. Volunteer a couple hours each month. Donate some unwanted items to your church. But most importantly, maintain your values and your faith while becoming debt free.

Exercise offers a wide range of physical, mental, and emotional benefits. Many of which kick in quickly and build over time. The relief from your financial hardship might be a requirement for some people. However, there are other ways to exercise without the monthly expense. As an alternate solution, consider exercising from home or in the park. Do some research on exercises that do not requirement. Push ups, planks, jumping jacks and sit ups are prime examples of equipment free workouts.

Consider cancelling multiple streaming services to escape from your financial hardship. Anything you haven’t used in a couple weeks should be cancelled. Also, look into free ad-supported platforms such as Tubi, Pluto TV and Crackle.