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5 Habits You Need to Adopt After Your Personal Debt Breakup

You and your personal debt have decided to part ways. It may sting a little now, but in the long run, you know you’re better apart than you were together. You’ll probably still see reminders of your debt in commercials and in social situations, but you can rest assured that you made the right choice to end things when you did. Now, it’s time to focus on self-care and healthy habits that make you feel good about your money.

Your personal debt post-breakup checklist

No need for ice cream and sad songs. Here are some healthy habits that will get you back to feeling like yourself in no time:

  1. Keep it simple. Does the “new year, new you” messaging fill you with anxiety? No doubt! You can’t change everything overnight. Keep your approach to money simple by following a minimalist budgeting strategy. An example of this would be:
  • 50 per cent of your monthly income going toward essentials like utilities, groceries, mortgage and
  • 20 per cent of your income put toward savings. You can divide this between your emergency savings (which act as a buffer so you don’t need to rely on debt), your medium-term savings for big purchases and life goals and long-term savings such as retirement.
  • 30 per cent of your monthly earnings toward personal expenses. All those nice-to-haves fall into this category such as your gym membership, your morning latte or that weekend trip you’re planning.
  1. Automate your money. Say no to interest charges and late fees! Instead, set up automated payments on your bills, which will keep your budget running smoothly and give you less to remember each month.
  2. Boost your personal debt payments. In order to reduce debt, you must pay more than the minimums and stay consistent. Try using the debt snowball method to increase your debt repayment efforts. Put more money each month toward your smallest debt balance, but keep paying the minimum on all the rest. Once you’ve paid your smallest balance, keep that snowball rolling and move up to the larger ones.
  3. Look at the bigger picture. Is your Instagram feed filled with places you’d like to go, things you’d love to buy or concerts you’d love to see? It’s ok to save up for those things, but if they’re causing you to impulsively spend money, it’s time to edit your list. Use this goal calculator to keep you focused on what you’re working toward, and help to avoid distractions.
  4. Give yourself grace. Deciding to give up debt is a huge accomplishment! Keep working toward your goals and remember that even slow progress is progress, nonetheless. Give yourself a pat on the back and celebrate each time you reach a new milestone. Doing so will keep you motivated to tackle your bigger goals and give you enough momentum to stick with it.

Still on the fence about how you can leave your personal debt behind? Check out more debt relief options using this calculator, or schedule an info session with a Licensed Insolvency Trustee to talk about your debt goals.

Another great way to stay motivated is to follow social influencers who have gone through the same journey and have some amazing debt advice to offer. Check out Melissa’s blog, Broke Girl Rich for some stellar tips.

Ready to be free from debt? Tell us your story or just check in for daily debt inspiration. Find us on Twitter using the hashtags #LeaveDebtBehind #LoveAndMoney #DebtAdvice

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