Author Topic: How are people clearing their debt without taking on an extra job ?  (Read 3440 times)

Hudson

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I have read numerous threads where the OP anihilates 10's of $1000's in short time spans (1 year , 2 years etc). I am endeavourign to do simialr but whne I read these threads no one mentions how they go their extra income to clear the debt so fast.

I live paycheck to paycheck and each dont really splash out on things.  Approx 19% of take  pay  goes to debt , the rest covers living expenses. To start paying off the debt quicker I see my only option as taking on a second job.

Am I missing something here or is taking a second job viewed a one of the fastest ways to clear debt ?

Eric

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Re: How are people clearing their debt without taking on an extra job ?
« Reply #1 on: August 21, 2014, 06:33:17 PM »
Approx 19% of take  pay  goes to debt , the rest covers living expenses. To start paying off the debt quicker I see my only option as taking on a second job.

Am I missing something here or is taking a second job viewed a one of the fastest ways to clear debt ?

Sure getting a second job would help.  Same with getting a raise at your current job.  So too would cutting your living expenses.  You're currently spending 80% of your take home.  How can you slash that to 50% or better?

Where exactly does that 81% go?  Figure that out and we'll help you cut it down.

swick

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Re: How are people clearing their debt without taking on an extra job ?
« Reply #2 on: August 21, 2014, 06:41:39 PM »
Welcome to the forums!

Most people knocking down debt fast do indeed either get a second job or makes changes to make more at their primary job. 

The two fastest ways to knock out debt are making more money and spending less. You say everything other then the 19% goes to "living expenses" what does that include? It depends on what your debt actually is, but if you have any significant amount (some would argue any amount) then your "living expenses" should be bare bones until your debt is paid off.

Without actual information of your numbers, it makes it really hard to give you any useful advice. You might want to consider writing a Case Study.
http://forum.mrmoneymustache.com/ask-a-mustachian/how-to-write-a-%27case-study%27-topic/msg147056/#msg147056

lizzzi

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Re: How are people clearing their debt without taking on an extra job ?
« Reply #3 on: August 21, 2014, 06:43:12 PM »
The first step is to eliminate all discretionary spending…and I do mean all. You have to be really firm about spending only on food (at Aldi's), medicine, and gas. Entertainment is the library, or long walks--anything free.  Clothing: you just wear what you have.  Stop buying wine and beer. No vacations that cost money. In terms of the monthly bills, read the MMM blogs about not using your dryer or air conditioner, keeping the heat turned down in winter, turning lights off, taking quick showers, doing the laundry with cold water--you have to develop that Depression-era mentality like our grandparents. It is astonishing how cheaply you can live if you put your mind to it and can get the family on board. You may be able to avoid a second job. There were times when I considered moonlighting, but usually could get by by going into what I called "austerity mode." My friends knew that if I was on "austerity" they shouldn't ask me to go with them to restaurants or concerts or any of that.

sheepstache

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Re: How are people clearing their debt without taking on an extra job ?
« Reply #4 on: August 21, 2014, 06:56:56 PM »
I replied to your other thread a while back but I was thinking the context was you were a student hoping to cut down on the student loan debt you graduated with.  This makes it sound like you have a more pressing debt issue?  Have you read the blog?  I don't mean that in a sarcastic way.  If you found the forum directly that's cool but people often post here thinking everyone knows the basic reference material of the blog, so that might explain why you feel confused.  A 19% savings rate is very low by "mustachian" standards.
http://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/
http://www.mrmoneymustache.com/2012/04/18/news-flash-your-debt-is-an-emergency/
http://www.mrmoneymustache.com/2012/10/08/how-to-go-from-middle-class-to-kickass/
If the issue is that you're having a hard time figuring out how to get your living expenses down and how to know whether to focus on that or a second job, agree with Swick that a case study would probably be the best way.  If you don't mind a bunch of random strangers judging your choices :)


darkadams00

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Re: How are people clearing their debt without taking on an extra job ?
« Reply #5 on: August 21, 2014, 07:13:36 PM »
All discretionary spending? If you have a spouse and kids older than a toddler, you might have a problem with that. A new convert to M&M&Manism who's willing to shave his head, wear a hair shirt, and walk the uber-austere path to the Kingdom of FIRE is unlikely to have a spouse who had the same conversion experience at the same moment. This forum has a post from such people almost weekly. Even if a person is single, an amount of debt that will take more than 12 months will likely exhaust all patience with the constant "No's" to him/herself, friends, and family.

Cleanliness is not the absence of all stuff. Healthy eating is not the absence of every vain calorie. Financial freedom is about the purposeful use of resources to achieve specific (and usually quantifiable) goals. Happiness in the New Life might only require 1.5% of your income instead of 9% or 14% that you might have spent in the past. Quickly reduce the expenses for items you care nothing about (who wants to send a bigger check to the electric company this month?) and be purposeful in the discretionary items you do choose--that $40 basket that will look amazing on your bike and serve a distinct purpose on a daily basis while you tootle around town running errands instead of two weeks of $5 coffee that will be gone forever in exactly that much time.

Hudson

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Re: How are people clearing their debt without taking on an extra job ?
« Reply #6 on: August 21, 2014, 07:30:51 PM »
Great, thanks for all the replies. I have put up an attempt at a case study, well at least an isngught into the fidures I am workign with. Hopefully that may shjed some light on where I'm at or others may see some glaring holes in my lifestyle

lizzzi

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Re: How are people clearing their debt without taking on an extra job ?
« Reply #7 on: August 21, 2014, 07:39:21 PM »
Good points, darkadams00. I did say, "…if you can get the family onboard." Some people may be willing to live very austerely to eliminate hair-on-fire debt, and some may still want a few amenities in their lives. And you're right, extreme frugality for six weeks or so is going to be easier than trying to do it for a year or more. I hope Hudson posts a case study--more information will help us to help him.

Hudson

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Re: How are people clearing their debt without taking on an extra job ?
« Reply #8 on: August 21, 2014, 07:48:51 PM »
I have posted the case study  here in case it helps calrify anything
http://forum.mrmoneymustache.com/ask-a-mustachian/case-studynearly-40-and-have-f-all/