Reducing debt is the first step to achieving financial freedom! Practice these good habits to stay motivated while paying off debt, including creating a budget and tackling one debt at a time. 

1. Be mindful of spending.

Whether you want to lower your debt or pay it off altogether, it’s crucial to be conscious of what you spend. Track your expenses to help you see where money is going.

2. Budget.

Create a realistic budget that includes all of your ritual monthly expenses. Be sure to include any additional payments you plan to make toward paying down debt.

3. Pay off one debt at a time.

Paying off debt takes time. Don't be in a hurry. Focus on one debt at a time until it is paid off completely. This will keep you motivated to stay on track and help you tackle your debt in a maintainable way.

4. Build an emergency savings.

While paying down your debt, continue to save money in an emergency fund. Make sure the amount set aside allows you to comfortably stay on track with your total spending by including it as a line item in your budget so you treat it as another expense to pay.

5. Keep contributing to your retirement.

This should be another line item in your monthly budget. If money is tight, consider only temporarily reducing your contribution and look for additional ways to make budget cuts. Make it a goal to increase your retirement funding as soon as you’re able.

*Article compiled with Buffini and Company