How to Budget and Get Out of Debt Fast (Without Hating Your Life)
You ever wake up in the middle of the night, heart pounding, wondering how on earth your bank account got so low? Like, you were just minding your business, buying a perfectly reasonable amount of groceries, and then suddenly—boom—overdraft alert.
Yeah. Been there. More times than I care to admit.
Here’s the thing: getting out of debt isn’t just about numbers. If it were, you could Google “how to pay off debt” and be debt-free by Tuesday. But debt is math wrapped in emotion. There’s shame, fear, regret—maybe a touch of avoidance sprinkled in for good measure. It’s a whole thing.
So let’s take a deep breath and do this the right way. No shame. No starvation budgets. Just real, doable advice that works.
Step 1: Ditch Traditional Budgets (Seriously, Just Don’t)
Most budgeting advice tells you to sit down, make a spreadsheet, and decide how much you should be spending in each category. But here’s why that’s nonsense: it ignores reality. It’s like writing a workout plan that assumes you love running marathons when, in reality, you get winded going up stairs.
- Instead of budgeting, just track your spending for one month.
- No judgment. No guilt. Just write down where your money goes.
By the end of the month, you’ll see your true spending habits. Only then can you build a reasonable spending plan—one that works with you, not against you.
Step 2: Prioritize Saving While You Pay Off Debt
This is where people freak out. “Shouldn’t I put every spare dollar toward my debt?”
Nope.
Because here’s what happens when you don’t save: Life throws an unexpected bill at you (and it will—because life). Suddenly, you’re putting that emergency expense on a credit card, undoing months of progress. That’s a soul-crushing cycle.
Instead, start saving now, even if it’s just a tiny bit. I don’t care if it’s $5 a week—just something to build the habit.
One of the easiest ways to do this is through Acorns. It rounds up your spare change and automatically invests it. Set it, forget it, and let time do its magic.
Step 3: Attack Your Debt the Smart Way
Now that you’ve got a spending plan and a small savings buffer, it’s time to tackle that debt.
- List out your debts. Everything. Even the $200 you owe your second cousin.
- Choose a strategy: Snowball (pay off the smallest debt first for quick wins) or Avalanche (pay off the highest interest first to save money).
- Make extra payments. Even $20 more than the minimum makes a huge difference over time.
It won’t happen overnight. But compound progress, just like compound interest, is a beautiful thing.
Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.
Step 4: Stop Pretend-Saving
You know how some people say they “budget” for things, but then when they actually need the money, it just… isn’t there? That’s pretend-saving. Looking at your bank account and thinking, “I *should* have $500 in here” is not the same as actually having $500 in a separate savings account.
Set up an automatic transfer—even if it’s just $10 a week—away from your main account. Out of sight, out of temptation.
Step 5: Keep Moving Forward
There will be bad months. You’ll overspend. You’ll slip up. The key is to not use that as an excuse to quit.
Your financial situation didn’t form overnight, and it won’t fix itself overnight, either. But if you keep making small, smart choices, you’ll wake up one day and realize you’re finally in control.
FAQ: Fast Answers to Common Debt Questions
- “Should I stop saving for retirement while paying off debt?” Nope. Even small contributions now will compound over decades. Future You will thank you.
- “What if I don’t make enough to save and pay off debt?” Start with $1. The habit matters more than the amount. Adjust as you go.
- “Is debt consolidation a scam?” Not necessarily, but it’s not a magic fix either. If you don’t change your spending habits, consolidation just rearranges your debt—it doesn’t erase it.
You Got This
You’re not broken. You’re not bad with money. You just needed a plan that actually makes sense for real life.
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Your future, debt-free self is cheering you on.
