I get that. But I have a couple of strategies that help me when I’m slogging through my debt payoff. And they’re both about mindset.
When you owe a debt, you pay interest to your lender. When you repay that debt, it is exactly the same as earning whatever percent interest you’re paying. So, in my case, I’m earning five percent on one loan and two percent on another. Could I get better rates investing elsewhere? Probably. But not definitely. The only guaranteed return is the rates on my loans.
Taking a Pay Cut
Or, conversely, getting a huge raise once the debt is paid off. Think about it. What would you do with an extra $1000 a month? I’m putting at least $1000/month toward these debts, so when they’re gone, that means I’m getting a HUGE RAISE, right? Because I’ll have that much more income to do with what I please. Which I’m sure will be exciting stuff like investing more toward retirement goals. I know myself, so I know I’ll need to put that money into something rather non-liquid so that I don’t see my bank statement and loosen up on my frugal living.
Because it’s a slippery slope. Every frugal action begets another, and every splurge begets another. I have to remind myself that I’m in this for the long haul, that living in an uncluttered home will always be important, and that saving money will never go out of style.
Those are my strategies. What are yours?