(NerdWallet) – My story of giving up over $53,046 in salary Debt to two teachers is one of pain, perseverance, and cooperation. But it's also very much about love. My husband and I started paying off our debt shortly after we got married in 2016, and three years later, just before our son was born, we made our final payment.

I insist that we will not start a family until we pay off our debts. Rumor has it that kids are expensive, so I want to make room in our Budget for unavoidable medical bills, child care, and college funds.

That rumor later turned into ironclad fact.

Our four main strategies provide a road map for others working toward financial independence.

1. Make a battle plan

Debt is an adversary, a monster that needs to be slain before you can move on to the next level. It requires a well thought out plan of attack.

First, we evaluate our opponents by identifying our liabilities and organizing them in Google Sheets. We have seven debts including student loans, two car loans, a home improvement loan and the balance on my engagement ring. As each debt is paid off, I cross it off the spreadsheet and, oh, the satisfaction.

We have chosen the debt snowball payment method where you can focus all of your extra payment funds on the smallest debt while continuing to make minimum payments on other debts. I needed some quick wins to keep my momentum going before I tackled the bigger, more intimidating scales. We paid off our smallest debt, $926, in the first three months.

If you prefer the avalanche method, then no worries, it settles the largest debts first. The simple act of choosing one that fits your lifestyle and personality is more important than the method. Snowballs and avalanches are just two different paths to the same outcome.

2. Budget alignment

We write a budget every month after we list our debts and determine our strategy. First, we figure out our total income. When we started our debt-free journey in August 2016, my husband and I were bringing home $4,694 a month. By subtracting the mortgage and mandatory expenses like utilities, groceries, and minimum debt payments, we know how much money we have to cover the extra debt.

For a few months, we paid the minimum debt and that was it. Then, when money was more abundant, we made additional payments, some months as high as $3,500. In both cases, the budget dictates how we spend every dollar and keeps us disciplined. Are we sticking to our budget every month? Absolutely not. But every month, we try. When that month is over, we start again with the goal of doing better than the last one.

Many budgeting strategies, tools, and apps can help you draft and stick to a budget. Pen and paper also work well. (My budget is on sticky notes and dry erase boards.) Whether you prefer a 50/30/20 budget or stuffed cash envelopes, it's better to know any budget than nothing. Without it, you risk forgetting bills, running out of money before payday and delaying debt repayment dates.

3. Earn or find extra money to pay off debt faster

Send extra money to pay off debt

Most of the influx of cash leaves our bank accounts before we're tempted to spend it: tax refunds, job bonuses, and income from second jobs. For example, my husband gets a stipend for being a basketball coach and I teach at summer school. We all sacrifice time to make more money, but in a way, I'm interested in getting it back: Now, I can be with my son at the end of the workday instead of going elsewhere. a job. The time spent with him was truly priceless.

” more: How to Make Money Online, Offline and at Home

increase income

It took me two years to get professionally certified, which resulted in a 12% increase in my salary and a $250 increase in take-home pay. At the time, my car loan was costing $223 a month, so it was like an extra car loan.

Many jobs reward employees for adding certifications or certificates. If you haven't, consider negotiating a raise or finding another job that pays more.

Adjust withholding tax if necessary

If you receive a refund after you file your taxes, it means most of your paycheck will go to the IRS interest-free. Of course, the money eventually comes back as a lump sum, but you receive less paycheck throughout the year.

After getting married, I filed a new W-4, changing my filing status from “Single” to “Married Filing Jointly.” Also, I adjusted my withholding after using the IRS Withholding Estimator tool. That added $269 to my take home pay.

” study: How to fill out the W-4 form

4. Cut expenses

“Just skip the daily trip to Starbucks.” That advice has become a cliché. But paying off thousands of dollars in debt will require a bolder move — and a more painful sacrifice — than ditching your latte. So here's what I do.

Suspension of charitable giving

Some people will disagree with my decision to cancel the donation while the debt is being paid. When to give, how much to give, and whom to give are highly personal choices. For my husband and I, a temporary moratorium on charitable giving has worked. You decide if it's right for you.

living a lean life

Reducing or eliminating expenses is inevitable if you want to pay off your debt. Good news: There are many ways to do this. Review your bank and credit card statements and look for opportunities to make cuts. Here are a few ways we can reduce the cost of living:

• My husband found a job closer to home, reduced his commute from 31 miles to 6 miles, and saved gas.
• We waited a year for our honeymoon, which was mostly paid for with cash wedding gifts.
• We save as much as possible: I started shopping at cheap supermarkets. My husband, an avid bowler, has suspended league play to save about $20 a week in fees. He even switched to a cheaper brand of razor.

5. Save strategically

I've been building an emergency fund for my family, beyond the $1,000 that some people think is enough to help those who are paying off debt.

This decision did delay our debt-free date, but on the other hand, a healthy emergency fund has given me a financial buffer and invaluable peace of mind. I know I can pay in a financial emergency without going back into debt.

” more: Emergency Fund Calculator: How Much Will Protect You?

imagine your life after debt

Fuel yourself on your debt repayment journey by imagining life afterward.

When I filed my last debt payment in 2019, I felt a sense of relief and a deep sense of accomplishment. For three years, I was so focused on our journey. I alternate between regretting financial mistakes and moping about things I couldn't afford. After paying off $53,000 in debt, I set my sights outside and got back to donating to causes and giving to others. Most importantly, I have the freedom to start a family.