A BUDGETING expert has revealed the three steps she took to turn $20,000 in debt into $10,000 in savings.
The financial transformation is so easy that you won’t even notice you are saving money.
That Budget Babe is a budgeting pro who shares her best tips on TikTok (@thatbudgetbabe).
In a recent video, she revealed how she transformed her own situation from a financial nightmare to an inspiring success.
“A few years ago, I was $20,000 in debt, had absolutely no savings, and was struggling to manage my money every month,” she said.
“To say that I was living paycheck to paycheck is a total understatement.”
The situation was so bad, That Budget Babe was only “one serious event away” from “losing everything.”
But she managed to pay off her $20,000 debt in less than a year and build up a nest egg of $10,000.
THE THREE STEPS
She revealed the three steps that were vital to her financial transformation.
“First and foremost, it’s all about consistency,” she said.
“The success that you’re looking for is right on the other side of consistency.”
The second step is to regulate your emotions about money.
“How you feel about your money has everything to do with the actions that you take with your money,” said That Budget Babe.
She admits that she used to go and spend excessively when she felt down about not having money, to try and get that feel-good hit of dopamine.
But she sees now that it created “a self-perpetuating cycle of failure,” and led her further into debt.
The third step is to implement some kind of budgeting system.
“For me, that meant writing everything down with a pen and paper and figuring out exactly what my numbers were,” said That Budget Babe.
Every three to six months, she would take her bank and credit card statements and audit where she was spending her money.
See how another woman paid off $234,000 of debt in 31 months with her “beast” schedule.
Or try the “rainy day” savings challenge that could save you $1,700 with just $10 at a time.