7 Practical Ways To Minimize Debt In This Current Economic State

I am sure that we all have to deal with this economic reality, and the financial squeeze we are in. To make things worse, those of us who are self-employed don’t get paid when we’re not working; while our expenses keep going up. Unfortunately, there’s no easy way out of this dilemma. But I found a few methods that will help you lower your debt as much as possible right now.

Re-evaluate your goals.

• One thing that the pandemic has taught us is that sometimes plans we make ahead of time are bound to take another turn of events. Personally, I set monthly goals for myself often but at times I still need to go back to the drawing board and re-evaluate these goals. As a business owner, content creator and small business consultant at my day job, I have to prioritize tasks in order of importance to evaluate which ones align with my budget goals for that period.

Know the difference between a need and a want.

• Some people may not want to hear this but it’s the truth. There are certain things we may want but is not something needed at that point in time, It may be easy to confuse both things but being able to prioritize your needs from wants can better help you make more intentional decisions with your spending and buying habits. Click here to learn more.

Track your spending habits.

• Tracking my spending habits is something I have really prioritized in 2022. Mainly because my business – E’s Element has forced me to take further charge of how much money comes in and goes out of my business. Not saying, prior to my business I wasn’t tracking my spending habits. But setting up spending trackers with your online banking and notification alerts has really helped me be more aware of how much money goes towards certain spending categories.

Prepare for income changes.

• Leading back to my initial point about re-evaluating your goals, preparing for income changes is another step towards managing your debt properly. When a drastic decrease in your income comes, it’s important to remember that having multiple streams of income is key to managing your finances. At least you know that you are not putting all my eggs in one basket.

Cut down on living expenses.

• No one ever really wants to hear this but cutting down on certain expenses can really go a long way when it comes to making better spending decisions

Get creative about making money.

• Personally, I believe there is no one way to make money which is why here are few ways I can recommend to people in the creative industry of content creation. Especially if you are looking to make passive income. For example:
• You can publish an ebook on Amazon KDP Publishing
• You can create a blog (speaking from experience)
• You can start a Youtube Channel
• You can create designs on Canva and sell them to people online (Personally, I have created media kit templates, ebooks, business cards etc)
• You can launch an eCommerce store using Shopify to sell your products online
• You can join an affiliate program & many more

Shot by Tru Creates

Jewelry from E’s Element

Start a side hustle or start freelancing.

• Leading back to my point about creative ways of making money, you can also become a freelancer by honing in on your greatest skill sets. Personally, I’ve been embracing my business consultation skills and have decided to offer coaching calls over here: to other small business owners looking for more clarity in the eCommerce world. You can even go as far as listing your services on platforms like LinkedIn, Fiverr or Upwork to put yourself out there to potential clients. In the long run, this is an effective way to bring in some form of money to manage your finances and it can all be done online without having to meet people in person.

We can eliminate our debt despite the current economic reality of the world by being intentional and taking the necessary steps to improve our finances.

*ps: I am not a financial expert. These are my opinions based on personal experiences*