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5 Easy Debt Elimination Tactics for Millennials

5 Easy Debt Elimination Tactics for MillennialsThe generation often referred to as ‘millennials’ is facing many of the same problems seen by previous generations.

It is easy to fall into debt as a young adult, as your expenses will often outweigh the salary you are earning in your young career. If you aren’t careful, those debts can quickly mount, and you may find yourself in a bad financial position, even as your adult life is just getting started.

So what can you do about this? There are a couple of options. You can find a way to make more money, or you can find a way to cut your expenses. The five tactics below will include tips on both sides of this equation.

Pick Up a Side Hustle

This is an emerging option which is becoming more and more popular with the millennial set.

Since you are just getting started in your full-time career, you probably don’t have many options for increasing your income in that setting. As a newcomer, it would be pretty tough to walk in and ask for a raise. What you can do, however, is make some money while you are away from the office.

There are many different side hustle options available these days, from doing freelance work online to driving for a service like Uber or Lyft. Even if you only have enough time to make a little money from these ventures, that money could make all the difference in terms of paying down your debts.

Learn to Cook

Sadly, many young adults these days don’t know how to cook their own food. This is a problem for a number of reasons. For one thing, eating out all the time is rather unhealthy. Also, it is expensive.

You may be surprised to find just how much money you can waste by dining out for the majority of your meals. Learn how to cook and you will be doing something positive for your waistline as well as your pocketbook.

Find a Roommate

If you are not married, you would do well to find a roommate in order to split your living expenses. Living with someone else who is paying half of the rent is one of the best things you can do for your budget.

In addition to splitting the rent, you can divide up a number of other costs as well, such as the cable bill, internet expense, and more.

Set a Short-Term Goal

Since you are young, it is likely that your debts are not yet too far out of control.

Maybe you owe something like a few thousand dollars on a credit card account. That might seem like a big hill, but you can actually get over that hump with some hard work and sacrifice.

Cut out some of your other spending in the short-term in order to pay down the debt as fast as you can.

Craft a Careful Budget

While you are working on getting rid of your current debt, another beneficial thing you can do is create a budget for your life moving forward. This will help you to stay out of debt once you have caught up.

Staying out of debt is painfully simple – you just need to earn more than you spend. Make sure that is the case through the use of a budget and you will be off and running.

 

What have you done to eliminate debt? Do you have any other suggestions for millennials?

 

Photo courtesy of: 5688709

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John Schmoll is a Dad, husband and veteran of the financial services industry. He's passionate about helping people learn from his mistakes so that they can live lives free from the shackles of debt and empowered to make their money work for them. You can check out his other sites: Frugal Rules, for ways to improve your financial literacy; and Sprout Wealth for tips on different ways to make more money. John has been featured on Forbes, Lifehacker, Yahoo Finance and US News & World Report and more. If you're wanting to grow your blog, check out my blog coaching services to see how I can help you take your site to the next level.

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