Give Yourself a Gift: a Little Less Debt

LAST WEEK'S CHALLENGE

Last week I asked that we challenge ourselves to build up someone else's house...to take the time to place value in someone else by giving from our possessions something we love or even feel we need. I accepted this challenge and fulfilled my commitment to it by investing in a start-up business. A friend who has recently established her own company approached me about becoming one of her first customers by placing an order for her product. Instead, I placed two orders.

Having my own start-up company, I not only know what it's like to be excited about a new venture, but to be anxious to acquire a list of loyal customers. And as much as I want to see my business continue to grow, I chose to focus my attention on spending money to get my friend's business off the ground. I took time away from marketing my services to potential clients and invested time into referring customers to purchase her product.

What about you? How did you meet last week's challenge?

THIS WEEK'S CHALLENGE

We began this week by taking a look at how interest rates affect our financial lives. So, I thought it would be fitting to use today to focus on deliberately reducing our debt by making an extra payment on an expense account. I don't care if it's an extra $5.00, $20.00, or $100.00. Let's make the sacrifice and give ourselves the gift of having a little less debt than we had last week, last month, and perhaps even last year by making an extra payment on a debt.

Sometimes we make the assessment that paying a few more dollars won't make a significant difference in reducing the balance on our debt, but those few extra dollars can translate into fewer days spent being indebted to someone else. Paying ten extra dollars on any loan will mean an additional annual investment of $120.00 into achieving financial freedom, and that $120.00 can end up making all the difference in the world. But relax. I'm not asking you to make extra payments every month (at least not today).

Today's challenge asks you to choose one of your loans to make an extra payment on. Now, for some of you this may require you to pull cash from something else. For example, you may have to take it from the money you set aside for movie night. You don't necessarily have to forfeit going to the movies; perhaps you can forgo buying popcorn and use that money to pay on an expense. Either way, give yourself the gift of having a little less debt.

I'm going to do it. Will you?