Nothing holds us back like bills. We can easily see our money committed to expenses before we even earn it. Many times we do it to ourselves. The system we live in facilitates debt. This was a major reason for the Great Recession but unfortunately many of us have not yet learned that debt can enslave us and if not used with care can keep us enslaved and prevent us from becoming financially independent.

Credit cards and loans can easily become a large part of our monthly expenses and since so much of our money goes to pay these debts we have less money left over (if anything at all) to put towards constructive things for our future and financial well-being. One thing many do not consider is that interest is being added to this debt which automatically makes things more expensive that what we would be willing to pay if we were using cash!

So what can we do? For starters, we need to have pride in ourselves and that pride says we will buy our OWN things and pay our OWN way. Lets keep in mind that when we use loans and credit cards, we are using someone else’s money. If we want to be financially independent, lets start thinking that way. At the same time, we will not be spending on anything we do not truly need. The main goal is to bring our expenses down as low as possible and eliminate unnecessary bills and debt so that we keep as much of our income as possible. We need to be strong enough to sacrifice some comforts and conveniences. Do we want financial independence bad enough to make the necessary moves? If we do, then we have the right mentality. The Money Rebel has come up with some basic ways we can start liberating ourselves financially.

Make a list of all of our bills
Ask what is essential and what is optional. In other words, what are our needs and what are our wants. Some we can do little about – such as housing, food, healthcare, etc. Others we create for ourselves.

What can we eliminate immediately?
There are things we pay for and do not need. From services to subscriptions, most of us can find little things that separates us from our money. Lets be cold and heartless when we turn our backs on them because we do not need them – we need our money.

What can we replace with lower cost versions?
There are things we need but might be able to pay less for. Can we pay cheaper rent down the street? Can we give up the lease and buy an inexpensive car outright? Is there a better insurance rate for our car or home? Cheaper gym membership? Lower cell phone plan? How much TV do we watch – do we really need that cable bill? Are we buying a new shirt because we absolutely need it or are we just bored with our current selection? Question every expense and every purchase! We allow many expenses because they are so small – but they add up. Even if they total up to a hundred dollars in one month it is worth considering. How many hours would I have to work to make up that same amount?

After eliminating everything we can, lets use our left over money to pay off credit cards!
We have a sense of security when we have cash. However, if we have a similar amount in credit card debt, we don’t really have anything! We need to understand that we are in a better financial condition by having little cash and little credit card debt than having more cash and more credit card debt. We are going to have to face this debt at some point. The longer we put it off, the more it is going to cost us. We tend to prefer to keep the cash in our pocket and put off the debt by paying the minimum. We also tend to forget that if we use the cash to pay the credit card, we keep the same buying power (via the credit card) while eliminating the interest-rate. Remember, the card will always be available for emergencies!

When we start paying down our debt, the related bills start to go away and we will feel better about ourselves. There will come a time where the money we were using to pay down our debt now has nowhere to go but our pockets! Now we can start thinking about saving money. We also open ourselves up to opportunities such as investments and a realistic path to owning our own businesses or owning our own homes – Wouldn’t it be great to eliminate THAT bill?!

Where we are in 5, 10, 15 or 20 years depends on what we do right now. Lets create a better financial future. Let’s start by eliminating our excess bills, reducing how much we spend on the ones we need to keep, and paying off our debt. These are the things that hold us back – so why allow it? Lets rebel!