On today’s episode, Kathi chats with Deborah Smith Pegues, author of The One-Minute Money Mentor for Women. Kathi and Deborah discuss the importance of women being financially literate. And Deborah shares practical tips for women who might feel overwhelmed by money issues.
On today’s informative show you’ll learn:
- Why people who struggle with clutter often also struggle with money
- What to do if you’ve been ignoring money and find yourself in a tough place
- Deborah’s biggest money tip for the Christmas holiday
Enter to Win!
Grand prize- Win $50 in cash to go towards an outstanding bill, plus Deborah’s book The One-Minute Money Mentor for Women!
Plus, FIVE lucky runner-ups will win a copy of The One-Minute Money Mentor for Women!
Enter by answering in the comments:
“Share your best tip for getting out of debt?”
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Buy the book here.
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Meet Our Guest
Deborah Smith Pegues
Deborah Smith Pegues is a certified public accountant, behavioral consultant, TV host, and global speaker with an MBA in finance. She has written seventeen transformational books, including the bestselling 30 Days to Taming Your Tongue (over one million sold worldwide) and Emergency Prayers. She and her husband, Darnell, have been married nearly 40 years. Learn more.
My best tip for getting out of debt is to create a budget, have a budget committee meeting with your spouse, and stick to your budget. Make getting out of debt the priority over stuff. Sell all of the stuff that you really don’t need. The key is really being on the same page with your spouse.
One of my best money-saving tips is to go to the store with a list. That way, you aren’t buying things you don’t really need right now and you don’t forget anything. It limits the amount of trips to the store I need to take and the amount of items in my shopping cart.
One top is to make a budget and stick to it. If you don’t tell your money what to do, you will never prosper. A budget isn’t a restriction, it’s a plan. Every dollar gets a job and it keeps you on track.
I read recently that families who have money problems usually either have an income problem or a spending problem. My husband and I have absolutely had an income problem for most of our marriage (we have chosen for me to stay home with our children and live on one income). We have cut expenses as much as possible but couldn’t really get ahead on our debt until my husband got a raise at work and we were able to keep our expenses constant while really making some headway on paying off debt. So thankful that God has allowed us to begin feeling some freedom in this way.
Write down all expenses for the day and share it with my spouse. No hidden purchases.
The best tip I have heard is using envelopes with cash in them – one envelope for each category of spending. Communication about finances with your spouse is key too.
Also, doing a balance transfer can give more time to pay down a balance, but only if you are actively working toward paying it down even during the promotional period.
We started saving for projects (like new furniture or windows) so no further debt. We pay extra on debt, even if we only have a few dollars left over in budget as it adds up. We have started living below our means so we have a little more leftover in our budget to pay more on debt and closing accounts as they are paid off.
Live within your means.
One small way to save money (which will help reduce debt) is this: if you have to go to a store w/ someone else, for instance as their caregiver, leave your wallet in your vehicle’s trunk. Usually you can do without anything that sparks your interest, and you can’t spend if you have no means to spend 🙂
Always pay double or triple the minimum balance…. or, if possible, pay your card off each month!
If you need to buy something anyways, see if there’s a sale or a discount on it.
I have used Upromise, Swagbucks, Ibotta, and Kohl’s consumer surveys to earn extra cash. I use that money to buy gifts and to buy things for myself. I can budget for my kids shoes because I get them from Target for $10. But Mom’s shoes, the ones that make my feet happy, are a bit more than $10. I don’t worry about it, because I know that I’ve earned money in various other areas that are sitting in my PayPal account.
My best tip is before buying something, really determine if that item will really bring value to your life. Most of the time, you can do without it.
I loved hearing Deborah’s practical wisdom and ideas! My best idea for getting out of debt is to join a local Facebook group (and I am NOT a fan of social media in general, so that says a lot!!). Figure out what you no longer need that still has value and sell it to a specialized audience (i.e. sell kids clothes to a moms group, etc.). Kids’ toys and name brand clothes (because with four kids someone outgrows something about every ten minutes at my house!!) can be listed and sold within minutes. If you do a closed group, it is safer and easier. I joined Facebook, but refused to use it for anything other than selling purposes. I made a couple thousand dollars between selling things and using it to promote a 3 hour garage sale (I was clear on specific brands and sizes, so the people who really could benefit from what I offered knew to come). I donate at least 2-3 boxes a month of things, but items in great condition can be sold, and the money can be used to help move the ball forward financially (and declutter at the same time!).
First of all, I loved hearing your interview with Deborah today!
I’m still in the process of getting out of debt. I’m trying to do small steps…I’ve stopped getting “takeaway” coffee and I’m trying to stay out of the mall unless I have to be there. I’m gonna give myself some grace during Christmas, though! I also listen to audiobooks about saving money/not spending money, and that keeps me inspired. I’d love to have a copy of Deborah’s book and win the giveaway. Thank you!
My best tip for getting out of debt is to live within your means.
Getting out of debt for me begins with small changes. Over time small changes make huge differences. My one tip would be to become a DIY er. In our technology filled society, there is access to videos, books, webinars to to almost anything. I recently read a story of a single mother who worked full time and built a house with the help of her small kids. She went online and researched every aspect of home building. Instead of outsourcing many tasks or repairs, I research how to do it myself. I have saved hundreds of dollars in minor car repairs by purchasing the parts and viewing videos. It increases my skill set and gives me sense of pride knowing I did it myself. Get your family involved on a project. You will save money while creating family bonding and priceless memories.
Two tips:
1) I have started paying with cash. I don’t carry much at all ($20 or less), so I really have to think about/prepare if I need/want to buy something that costs more than that.
2) I have also started staying home more. Going to the stores makes it so easy to buy something, or just grab a quick snack while out.
We only use cash/debit cards to pay for things. My husband has a credit card that he uses for his work expenses only and I don’t have a credit card.
One of the best tips I know for getting out of debt is putting yourself on a spending freeze for a certain time period, like 3 months for example, where you don’t buy anything unneccessary….no fancy coffee drinks, makeup, books, etc. Use what you have, be imaginative and innovated. Change up your wardrobe. Instead of buying new clothes, even if they are on sale, shop your own closet and come up with different combinations of outfits you haven’t worn before. Use upg your moisturizers and bath gels and soaps before buying new. Darn your socks that have a hole in the toe before buying new. Eat leftovers. Bring your lunch to work instead of eating out. Make gifts for Christmas instead of buying them. Use the library instead of buying books and CD’s. Use the extra savings to pay off your debt. Commit to not using credit cards anymore, go cash only.
Send as much as you can, as often as you can. There’s no law against making more than one credit card payment per statement cycle, and there’s no law against paying more than the agreed upon amount on a car loan or mortgage. The sooner the debt is paid, the less you’ll be paying in interest–which is a death spiral for people in debt.
Count your blessings! There is so much to be thankful for no matter where you are in the journey:)
Just a few things we’ve done on our path to becoming debt free: (sorry, more than one tip)
First, don’t get into further debt. For example, don’t take out college loans. Go to school part time, even though it takes longer, and use the Federal Work Study Program if you qualify, or work part time. Apply for scholarships and grants. Second, downsize to one car. I thought I could never do this, but we’ve been a one car family for eight years now, and it’s very freeing.
Don’t “despise small things” – in other words even small savings count. If buying coffee out is your thing, treat yourself only 2-3 times a week as opposed to 7 days a week. It adds up monthly, i.e. even a small coffee that “America runs on” is over two dollars, so that can add up to sixty bucks a month. I cringed at the thought of making my own coffee and not experiencing the paper cup, steam, warmth, taking it to my desk, etc. But after experimenting, I made my own tasty coffee and only buy out about once a week now. Also, if planning a menu for a whole week makes your mind crazy, just plan for three or even two evening meals ahead and buy only for those meals. Lastly, I didn’t realize how much silver change was going through my fingers, which now goes into a glass coffee jar (not the pennies, just the silver). It actually adds up. We also stopped buying bottled water.
USE CASH!
Make a list of all of your debts and the total outstanding debt. Each month update the totals and watch the your progress as your balances decrease. This will discourage you from continuing to use credit cards and make unnecessary purchases.
My best advice is to stop spending more than you have, and that can be tough once you have debt! A cash envelope system can be really helpful for this!
Start with small steps- like writing down where your money is going and commit to not spending more than you make. When you try to do too much too fast, it can easily derail you.
Get out of debt tip: knock off small stuff first, then call and ask the credit card companies to lock in a lower rate, usually closes that account. But if you were like me, it was maxed anyway.
Best tip for getting out of debt is to have a budget and to work at it slow and steady.