When you set up a plan to pay off debt, you're probably willing to forego frivolous expenses. However, even the things that are worth buying can be on the chopping block if it helps you pay off debt.
Photo by Reed Wiedower.
As personal finance blog The Bean Counter explains, there will always be some expenses that you can justify. Living in a home without a couch while you pay off debt, for example, may not be worth it. However, if refraining from that purchase will help you stay consistent in avoiding other purchases, then abstaining helps, even if you could justify that particular item:
During our move from Miami to Orlando, we set up a separate budget of what we needed to purchase for our new place and what we were willing to sacrifice on. The sacrifice? Purchasing a couch. I bet your next question was, "Was it worth it?"
The truth: Absolutely not.
Dropping $US300 bucks for a new couch would have not had a significant impact on our willingness and ability to get out of debt. But, it was that same sacrificing mindset that allowed my wife and I to avoid additional expenses, any chance we got. Including the comfort of owning a couch.
That's not to say that you can never justify an expense. Some things you just need. If you have back issues, buying a bed isn't just an investment in a nice thing to have, it's to prevent further health issues. You can decide your own issues for yourself. However, being willing to sacrifice some comforts, even if you can justify them, to pay off your debt is what will enable you to keep going.
The Crazy Side of Paying Off $US55,000 of Debt in 14 Months [The Bean Counter via Rockstar Finance]