Can you believe it? This is the 4th and final week of April and the final week for our #Make1Change Money Challenge.
For the week 3 challenge we only paid with cash. I must confess there were only a few times I paid with cash this past week. I wasn’t resistant to it. My husband was out of town all week for week and I had my hands full. Adding a trip to the bank to take out cash wasn’t gonna happen. I did take out cash during the weekend. I was much more aware of how much I was spending when I paid with cash. Paying with cash is a habit that I am going to put more effort toward this year, so I will keep working towards it beyond this month’s challenge.
What about you? Which one of the money challenges leading up to this week will you stick with?
I don’t know when you joined the challenge, but to help you move past any resistance to changing this area of your life, I recorded a 2 part podcast interview with my favorite budget coach Ericka Young. In this month’s podcast Ericka shares tips and strategies for making small incremental changes in our spending to reach our ultimate money goals.
Here’s the link to both conversations:
Because she’s so passionate about forming better money habits, Ericka’s also coaching us through our weekly challenges. You can find her insights in each weekly challenge blog post.
Let’s get started on this week’s challenge!
Here’s a little insight from Ericka about the Week 4 challenge:
Add up what you’re spending on debt payments. Ok… Ok… you may need some chocolate, Barry White music in the background and a stress-relieving back massage when we’re done with this one but trust me it will be worth it. I want you to gather all your debt payments including, cars, credit cards, student loans, personal loans, etc and add up how much you pay out each month. You might be sick to your stomach. You might be mad at me right now. You may want to cry. I understand. I had to do it too. Now I ask… what could that monthly amount grow to if you invested it until you retire? Go to Fool.com, get a financial calculator on your phone, or just multiply it by the number of months until you retire. What is the result? It is probably an obscene number right? You want that money don’t you? Getting out of debt will give you the freedom to have that money and more. So eat your chocolate and then get to work. Start paying off that debt and then you can invest it for the long haul. Get free!
In case you missed any of the other challenges here they are again:
- Challenge 1 (week of 4/4) : Fast from spending. Don’t spend any money this week. The only exception to this rule is gas or kid’s lunch money. Everything else has to wait.
- Challenge 2 (week of 4/11) : No dining out this week. Pack your lunch for work. Get in the kitchen and cook at home instead of going out to eat.
- Challenge 3 (week of 4/18) : You spend more when you don’t pay with cash. This week we only pay with cash. This includes only shopping. No online shopping this week.
- Challenge 4 (week of 4/25) : Figure out what debt is costing you, long term. This exercise will inspire you to turn up the intensity for getting out of debt.
Join this week’s challenge: Count the cost of debt. Leave a question or comment about the challenge below. Chat with us on Instagram (@kendratillman) or Twitter (@kendratillman). Use hashtag #make1change. We can’t wait to hear your success stories.
P.S. If debt has been holding you back from reaching your goals, schedule a 30 minute complimentary budget session with Ericka: I’m Ready!