Debt repayment can be hard. Maybe all you see is the looming number of debt to pay or maybe you don't know how much the amount of debt is because you've avoided looking at the total amount owed. Whichever the case, being able to afford what you need while paying off debt CAN be simple if we focus on simplifying the process. This blog post highlights the steps I used in the past to be able to afford the things I needed while paying off debt, and you guessed it, it starts with a Budget!
All my friends know how much I love budgeting, but this doesn't have to be the case for you. It can be as easy as choosing a budget and working from there. In respect of this blog post, I will not be focusing on the types of budgets to choose, instead, you can find this information on the post "6 Ways to Pay Off Massive Amounts of Debt".
Now here it is: within your budget, allocate a set number of dollars that cover the expenses you need. The categories I've used in the past were Food, Fun, Gifts, and Miscellaneous. Within each of these categories, I realistically set an amount that would make my partner and I (slightly) comfortable for each two week pay cheque and I would take this budget out in cash.
Taking the Needs Budget out in cash ensured I didn't spend more than I had allocated. This Needs Budget also ensured I had some money to spend on what I needed (and in some cases, what I "wanted" if I had any money leftover).
While you're on a journey of paying off debt, this Needs Budget is critical to successfully paying off debt because it ensures some fun can be had on a set budget and that there is money for emergencies (from the category titled Miscellaneous). I also recommend always having a $1000.00 Emergency Fund but we'll cover that in another blog post another day.
So in summary, have a Needs Budget allocated within your overall budget so that you can spend it on the things you need (and sometimes, want, if there is money leftover). All remaining money goes towards paying off that debt. This makes the debt repayment journey so much more enjoyable and doable.
Try this out for a month and let me know how the process is going. Good luck!