• Paying Off Debt in the New Year

    January 1, 2021

    Having debt is like carrying a huge boulder on your shoulders. Each time you finance another purchase or swipe your credit card, you’re adding weight to that boulder.

    Let this year be the year of removing that boulder from your shoulders so you can live joyfully in the realm of financial freedom.

    You can pay down your debt this year, whether your debt amounts to $3,000 or even $30,000. The single most effective way to do so is by creating an income stream and dedicating all of its earnings towards paying down your debt.

    Yes, you may need to temporarily add quite a few hours to your workweek, but one year of long hours can lead to a life free of the many burdens of debt. Can you imagine what it would be like not having to make debt payments? Your paycheck would be yours to do with as you please!

    Getting a Part-Time Job

    If you have the ability to get a moderate to a well-paying part-time job, go for it! If you’re able to land a 20-hour per week part-time gig paying just $12 per hour, that’s over $1,000 each month. Granted, you’ll inevitably need to pay taxes on this income, but even so, you’re able to keep about $945 in your pocket by the end of each month.

    Over the course of a year, you’ll be able to devote over $11,300 to your debt. Surely, that’ll remove a heavy boulder from your shoulders! And if your spouse is willing to get a part-time job with the same pay, you’ll be able to pay off your debt in the following amounts.

    Total Debt Paid Off With Two Additional Part Time Incomes:

    Month         Debt Paid Off
    1                    $1,890
    3                   $5,680
    6                   $11,340
    9                   $17,010
    12                  $22,680

    How drastically would your life change if you were able to pay off over $20,000 worth of debt? Better yet, if you choose to keep the job even after you’re done paying off debt, you’ll be able to build a hefty savings account to protect yourself from ever needing to borrow money from lenders in the future.

    Capitalizing on Your Hobby

    Everyone has a hobby. Unless your hobby is habitual shopping, chances are you’ll be able to capitalize on indulging in your hobby. You can flip furniture, sell knitted items, profit with sporting gear, or even sell your homegrown vegetables.

    If you’re talented in repainting furniture, purchase used furniture for pennies on the dime at craigslist.org, yard sales, or a local thrift shop. Then, sand the piece, prime it, paint it with two coats of glossy white paint, apply a protective coat, change the hardware, and then list it back on craigslist.org for sale.

    If you purchased the piece for $25, spent an extra $20 on supplies, and are able to flip it for $150, you’ve made a $105 profit with just a few hours of work! When you become accustomed to the process, you may be able to flip 3 pieces of furniture per week and end up with a nice $1,260 profit. Not bad for indulging in a hobby you enjoy!

    While you may not be the Picasso of cabinet refurbishing, you may have another hobby. Below are 7 common hobbies that are easy to capitalize on.

    • Knitting/sewing
    • Cooking/baking
    • Babysitting
    • Painting
    • Flipping collectibles
    • Writing
    • Party planning

    There’s no need to downsize, or even adjust your lifestyle in order to pay off your debt. You’ve worked hard to build everything you currently have; why give it up now? Getting a part-time job or effectively monetizing your hobby will allow you to pay down your debt considerably this year so you can start living the debt-free life you deserve!

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