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How to Combat Frugal Fatigue when Being Gazelle Intense

October 26, 2020 By MelissaB 11 Comments

My husband and I recently added up our student loan and credit card debt.  Imagine our shock when we discovered we have $58,000 in debt!  What was this debt comprised of?  It is made up of nearly $38,000 in student loans, $6,500 on a business credit card for a business that failed and $13,500 of personal credit card debt spread over two cards (the smallest balance at $1,000).  The latter debt is largely due to our current low income and some not so wise purchases.  We’ve recently become gazelle intense.  However, we’re being careful to combat frugal fatigue since we know we’ll need to live this lifestyle for quite some time.

Gazelle Intense

What a Gazelle Intense Day Looks Like for Us

At the urging of everyone around us, we began to follow Dave Ramsey.  Because we do not yet own a house but would like to in the next three to five years, we decided to become gazelle intense, as Dave Ramsey says.

What does gazelle intense look like for us?  My husband works away from the house for 10 hours a day.  After spending an hour with the kids when he comes home, he works on his dissertation and articles for publication for a few hours a night.

I stay home with the kids all day and blog, do virtual assistant work and freelance writing when the kids are napping and after they go to bed.  On the weekend, I typically leave the house for about four hours on both Saturday and Sunday to get more freelance work done.  I estimate that I am working 25 hours a week from home.  My husband is putting in another 20 hours a week at home doing work that will further his career and hopefully lead to a high paying, tenure track job in a few years.

Being Gazelle Intense Works!

Our hard work is paying off.  In just two weeks, we “found” an additional $701 to apply to our debt beyond our regular debt repayment schedule.  We found this money several ways.  First, we returned a few items we bought but hadn’t used before becoming gazelle intense.  Then, we also got an unexpected check that we put toward the debt.  We just paid off our first credit card with the lowest balance.  Next on our plan is to pay off the credit card with $6,500 within the next four weeks.

Getting Used to a New Lifestyle Takes Time

Gazelle Intense
Photo by Louis Hansel @shotsoflouis on Unsplash

As anyone who has become gazelle intense knows, there is a period of adjustment when you have to get used to the austere lifestyle that is required.  Let’s be honest—most people who have credit card debt have at least some of it because of a lack of impulse control and planning.

Was all of our credit card debt due to that?  No, we had a very low income for awhile when my husband’s graduate student teaching stipend was our only income, and we relied on credit to make ends meet.  However, we also ate out more than we needed to.  (Do you ever need to eat out?)  Our debt likely would be lower if we practiced more self-control with ourselves and our finances.  Since we weren’t stringent with ourselves then, we’re having to be now.

How to Maintain Gazelle Intensity for Months (and Years)

Gazelle intensity works with no break if you have a relatively short amount of time you must be laser focused.  If you can get your debt paid off in 12 to 18 months, you shouldn’t need a break.  However, if you’re looking at several years to pay down your debt, you will likely need to give yourself an occassional break to avoid frugal fatigue.

Take a Break After Each Debt

Because there is such an adjustment, to maintain your gazelle intensity and avoid frugal fatigue, consider rewarding yourself for each debt that you pay off or at a milestone you set.  If you have one large debt to pay off, maybe you will reward yourself for every $5,000 you pay off.

For us, since we love to eat out and now no longer eat out at all, we have decided that we will have one meal out every time we pay off a debt.  To maintain your drive, pick one thing you used to enjoy spending money on in your old, less frugal lifestyle, and commit to enjoying that activity once when you achieve your assigned goal in your debt snowball.  Keep it reasonable, less than $50, so you don’t derail your snowball, but give yourself that leeway to maintain your intensity.

Gazelle Intensity Interval Training

Another option is to do gazelle intensity interval training.  If you have a lot to pay off like we do, you may need a different strategy to keep up your motivation.  For instance, maybe you can commit to three months of intensely working and paying down your debt.  Then, you will take a break for one month.  Or, maybe you decide on an amount that you’ll pay down, and then you’ll take a break.  Maybe you decide to pay down $15,000 and then slow down in intensity for a bit. As you become invigorated again, set another goal that you’ll pay down before you rest.

Final Thoughts

Being gazelle intense definitely has rewards.  You put yourself in a painful place for an intense while until the debt is paid off.  Then, you begin to reap the rewards of all your hard work.  You can live like no one else, as Dave Ramsey says.

Yet, be careful not to become so strict with yourself that you give in to frugal fatigue and derail your debt snowball.  A small, planned out treat is often all it takes to keep you motivated and ultimately debt free.  If you’re confronting a large amount of debt, consider instead to be gazelle intense for a few months and then take a break.

Read More

A Review of Dave Ramsey’s Revised Financial Peace University & New Speakers

How to Save More Money Every Month

How to Get Out and Stay Out of Debt

MelissaB
MelissaB

Melissa is a writer and virtual assistant. She earned her Master’s from Southern Illinois University, and her Bachelor’s in English from the University of Michigan. When she’s not working, you can find her homeschooling her kids, reading a good book, or cooking. She resides in New York, where she loves the natural beauty of the area.

www.momsplans.com/

Filed Under: Debt Reduction, Frugality, Married Money, Saving, ShareMe Tagged With: dave ramsey, Debt Reduction, frugal, gazelle intensity, Saving

4 Ways to Find Extra Money to Put on Debt

January 9, 2020 By MelissaB Leave a Comment

4 Ways to Find Extra Money to Put on Debt

If you’re in debt, the common advice to get out of debt as quickly as possible is to get a second job and/or sell stuff.  But for some people, getting a second job isn’t an option, and there’s only so much stuff around the house you can sell.  However, there are 4 small ways to find extra money to put on debt that aren’t labor intensive but can make an impact on your debt reduction.

4 Ways to Find Extra Money to Put on Debt

You may have more money than you realize that can be mobilized to pay down your debt:

Practice Doing Without a Bit of Money Each Week

For instance, the first four weeks that you do this, just take $1 out of your budget a week to go toward debt repayment.  That is only $4 for the first 4 weeks, which almost anyone can do.  The next four weeks, make it $2 a week, so now you have $8 for the next four weeks going on debt.  By the last four-week cycle of the year, you’re at $13 a week, or $52 extra to go on debt for those four weeks.  At the end of a full year, you will have put an additional $364 on your debt.

Save All of Your Change

4 Ways to Find Extra Money to Pay Down Debt
Photo by Josh Appel on Unsplash

If you make a habit of paying in cash, try to save the change that you receive rather than spending it.  I used to do this quite regularly, and we would have anywhere from $250 to $300 in change at the end of the year, all of which can be put on debt.

Have a No Spend Month

At least once a year, try to have a no spend month.  You can decide if you want the no spend month to be only for groceries, or also for entertainment.  Now, this doesn’t mean that you don’t spend at all but that you try to avoid any extraneous purchases.  You might “need” to spend $300 on groceries for the month so you stay stocked in produce, milk, bread, etc., but if you usually spend $600 a month on groceries, your no spend grocery month will have netted you $300 in extra money.  Some people also say no to eating out or other entertainment during the no spend month to increase their savings.

Roll Extra From Any Budget Category Onto Debt

Let’s say you budget for $700 a month for groceries, but one month, there were great deals at the grocery store, and you only spent $643.  You can take that extra $57 and roll it onto debt.  Likewise, if your internet bill is $75 a month, but you call up your provider and negotiate a deal and now only have to pay $56 a month for the next 12 months, roll the savings of $19 each month onto your debt.

If, at the end of the month, you sweep all of the extra from any budget category onto your debt, you’ll likely have anywhere from a few dollars to a few hundred dollars to put on your debt.

Windfall Money

Any time you have unexpected money come your way, put it toward your debt.  You just got $1,600 back on your tax return?  Put it on your debt.  You got back a surprise $48 from your former employer?  Put it on your debt.  You use Rakuten regularly and just got a Big Fat Check for $7.47?  Put it on your debt.  No amount is too small.

Final Thoughts

While the common advice to pay down debt faster is to get a side gig, if you can’t do that, know that there are many other ways, even on a tight budget, that you can accelerate your debt repayment process.

What other ways have you found to pay down debt more quickly without getting a second job?

Incidentally, if you’re reading this because you’re in debt, but looking to get out of it, consider surfing over to our debt free family, they have a nice set of debt reduction tools that you might find helpful, here.

MelissaB
MelissaB

Melissa is a writer and virtual assistant. She earned her Master’s from Southern Illinois University, and her Bachelor’s in English from the University of Michigan. When she’s not working, you can find her homeschooling her kids, reading a good book, or cooking. She resides in New York, where she loves the natural beauty of the area.

www.momsplans.com/

Filed Under: Debt Reduction Tagged With: debt, Debt Reduction

Should You Create Sinking Funds Before You’re Debt Free?

October 21, 2019 By MelissaB 1 Comment

You have debt. A lot of debt. And now you want to pay it off, IMMEDIATELY! You’re fired up. You’ve read financial blogs, read debt payoff gurus books, and you’re setting up your budget. Should you create sinking funds before your debt free or put all of your  money toward debt repayment?

Should You Create Sinking Funds Before You're Debt Free?

What Are Sinking Funds?

If you’re new to budgeting, sinking funds are money you put aside for irregular expenses you know will come up during the year. Let’s say you spend $1,000 each Christmas, so you decide, in January, to set aside $83 a month in your Christmas sinking fund. When December rolls around, you have all of the money you need to pay for your Christmas gifts debt free.

Create Sinking Funds Before You Pay Off Debt?
Photo by Eugene Zhyvchik on Unsplash

The Argument Against Sinking Funds

Some argue that you shouldn’t set up sinking funds until you’re debt free. What is the point of putting $83 aside for Christmas when you’re paying 15% interest on your credit card? That $83 each month would be better served if you applied it to your credit card and reduced the balance and therefore the amount you’re paying in interest. You’ll get out of debt more quickly this way.

The Flaw With This Kind of Thinking

There is one major flaw with this kind of thinking. What will you do when you need to actually pay one of these irregular expenses?

I live in Arizona, and six months of the year, my air conditioner runs night and day. During those months, my electric bill ranges from $225 to $275, depending on how warm it is outside. Then there are about two months a year in flux when the electric is $125 to $175, and, in the winter, for four months, my electric settles down to $80 a month.

My budget can’t handle such big fluctuations in our electric bill, so every month, I set aside $150 for electric. When summer comes, I have a large sinking fund to help me pay for those hot months when the electric bill will be much higher than $150. 

If I didn’t have a sinking fund, how would I pay for the high electric bill in July?

A Happy Compromise

I encourage everyone to set up sinking funds, even if you do have lots of debt. Part of getting out of debt (and staying out of debt) is changing your attitude toward money. What’s the use of putting all of your money on your debt if you have a $1,500 car repair, no money set aside, and you have to charge it and go further back in debt again? That’s not a budget roller coaster I want to be on.

But there is a compromise; if you have extra in the sinking fund after the event is over, apply that money to debt. For instance, let’s go back to the sinking fund of $1,000 at Christmas. Let’s say you’re conservative, shop the deals, and only end up spending $750 on Christmas presents. Great! Take that leftover $250 and apply it to debt. Then, in January start saving for the sinking fund again.

Sinking Funds Before Paying Off Debt?

If you’re paying down debt, make sure to create and fund sinking funds. You won’t be sorry, and you’ll be changing your attitude toward money so when you get out of debt, you stay out of debt.

Do you create and fund sinking funds each month? If not, how do you handle it when large, unplanned or irregular expenses come up?

MelissaB
MelissaB

Melissa is a writer and virtual assistant. She earned her Master’s from Southern Illinois University, and her Bachelor’s in English from the University of Michigan. When she’s not working, you can find her homeschooling her kids, reading a good book, or cooking. She resides in New York, where she loves the natural beauty of the area.

www.momsplans.com/

Filed Under: Debt Reduction, Emergency Fund, Frugality, Saving Tagged With: debt, Debt Reduction, emergency fund, Saving, sinking funds

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