Money – it’s the bane of many people’s existence. We are often stuck wondering how can I get out of debt without earning more money, or marrying rich.  We have the answer for you – the 60-minute money challenge!

The 60-minute money challenge isn’t hard, in fact it is only 4 simple steps to help you get out of debt and working towards the things you want in life.

Step 1: Work out how much you owe and where (10 minutes)
In order to undertake any challenge you have to know where you are currently at. Take 10 minutes to sit down at your computer with all of your credit cards statements, personal loan statements, all your bills, everything! Work through this information and input into a spreadsheet how much you owe and where.

In this spreadsheet also make sure to write down how much income you have coming in, as well as any expenses you have. This may be accompanied by making a budget – you can get a free budget spreadsheet here. If you need some help using it, check out our article on setting up a budget.

Tip: By writing this down in a single location you are able to keep track of your finances much easier.

Step 2: Work out what it is you want from your money (10 minutes)
For any challenge, any change in behaviour to happen, you have to set a goal. With this money challenge sit down with your partner and develop the financial goals you want to reach together. Your goals should be broken up in the following way:

3 month goals
6 month goals
1 year goals
2+ year goals

Set yourself one or two goals for each category, but make sure this can all snowball into a larger goal. For example:

3 month goals
– Pay an additional $1000 off of credit card
– Save at least $500 into an emergency saving fund

6 month goals
– Pay an additional $3000 off of credit card
– Stop using credit cards to make purchases
– Pay an additional $20 a week off of personal loan

1-year goals
– Have paid off $8000 credit card
– Paid an additional $1000 off of personal loan
– Begin saving $50 a week into emergency fund

2+ year goals
– Be free from debt
– Go on a cruise (remember: you would have to have saved the money to achieve this goal!)
– Begin saving $500 a month towards a house deposit

Step 3: Work out how to reach your goals and make a plan (20 minutes)
So you now have an idea of what it is you want to do with your money, and what your goals are. Now is the time to think about how you are going to make that change. Sit down and make a plan, this may include:

  • Cutting expenses
  • Talking to a licenced debt negotiator about what solutions they have available to help you get out of debt
  • Seeking assistance from a budgeting provider who is able to help with debt strategies and payments, making your life easier

Step 4:  Put the plan into place (20 minutes)
You know how to get out of debt, and what steps you have to take. The last step is actually doing it, it is making the call and making the changes to make your debt free dreams your reality.

What’s 60 minutes’ worth to you?

If you have decided to take up this challenge, let us know how you are going and if you would have any tips to those looking to get out of debt.

Here at Debt Cutter we have previously challenged people to undertake money transformations, check out some of our previous articles below:

The 52-week money challenge

Manage your money challenge

The debt challenge
We should put a disclaimer on this article by saying that 60 minutes is all you will have to put in at the beginning of the challenge, and there will be ongoing maintenance to ensure you continue to achieve your financial goals. Rome wasn’t built in a day!

 

Elise Headshot

Elise Bentley
Brand & Communications Manager

Elise is passionate about finance, and is on a mission to explore and share different tactics for tackling the everyday financial challenges in realistic and achievable ways. With a background in communications, digital marketing, and public relations, Elise uses her skills to generate new ideas and content to help make finance fun.