Finding Hidden Money

Last evening Ross and I had the awesome opportunity to speak with a group about how we got out of consumer debt.  In just under two years, we were able to pay off over $44,000 worth of money owed to creditors.  The reactions expressed last evening when we shared the amount of debt and the timeline until it was paid off, served as a reminder to me that our story is truly a miracle of God.  In the same way, because it is a miracle, He can do it in anyone's life.  Including yours.

One of the topics of discussion was how to find hidden money.  Once found, this money can be put away into savings--a savings of $1000 to be exact.  This cash reserve provides a relief fund for the unexpected expenses that arise in life.  Having this money helps to prevent one from taking on more debt and continuing the vicious cycle of funding expenses with credit.

I thought it would be handy to list some sources of hidden money for you to consider if you, too, are in a season of wanting to demolish the debts that you owe.  If this is helpful to you, or if you have additional suggestions, please feel free to comment.  Thanks for reading!

• Spare change--Lots of people let loose change accumulate in their car, on their counter tops, and in other places.  Take this found money to your bank's coin counting machine and cash in!
• Late fees--Avoid them by paying your bills on time.  Our late fees would set us back $35 a pop.  My guess is that they are a lot more hefty nowadays.
• Add money to your monthly budget by taking as many exemptions as possible.  You can do this by working with your employer's HR personnel.  Your goal should be to not owe income taxes and to receive a smaller income tax return because more of that money is staying in your paycheck.
• Buy term insurance instead of whole life.  Term is cheap.  Whole life tends to be more expensive because it serves as an insurance and an investment.  When you are in debt, your immediate goal is not to invest--it is to get out of debt.
• Decrease your car travel.  Living in Harrisburg, I know many people who have ties to Philadelphia and will go there regularly to visit loved ones and to shop at places they like.  I'm proposing that unnecessary trips be eliminated so as to minimize gas expenses.
• Sell your stuff!  The new dress that's been in your closet for five years, the old baseball cards, the framed art from your Aunt Martha gathering dust in the basement...there are people out there willing to pay for your it.  Craigslist, eBay, and even a site on Facebook allow you to sell your items without having to arrange for a yard sale.
• Don't buy fundraisers (temporarily at least).  Remember you are in debt--you need to be the fund raiser :-)
• Work to minimize your utility costs.  Our utility's website provided a breakdown of our home's energy allocations and suggestions for decreasing our bill by making simple changes in our house.