This article is authored by Amy Nickson and is submitted to Career Money Life.
Can you pay off debt and pursue a dream at the same time? Yes you can…
It is said that if you don’t pursue your dream, someone else might hire you to build their dream. It is only ‘you’ who’s responsible to achieve your dream. There is nothing wrong with pursuing your dream. Rather, pursuing a dream gives you meaning in life.
However, it might be a little difficult to pursue your dream if you have debts to pay off.
Let us discuss how you can pay off debt while pursuing a big dream.
Realize and decide what dream you want to achieve
Many of us have multiple dreams. If you also have multiple dreams, sit quietly and decide on a dream for which you can go to any extent, come what may.
While deciding on your dream, make sure it’s not an impossible one.
Your dream might be to go on a world tour. However, it might not be possible at this moment if you have a huge debt to pay off. But, you can select one destination and make a plan to visit it once. Make sure you don’t incur additional debt while pursuing your dream.
A good way to get motivated to pursue your dream and pay off debt is to make a plan; divide your long-term goal into short-term achievable targets, and once you achieve one, reward yourself a bit. You can splurge a little but not much.
Plan to pursue your dream
In most cases, to pursue your dream, you will need money. Whether you want to go on a dream vacation or start a business venture, you will need to save a decent amount. So, you need a realistic budget.
Also, consider all the factors involved to pursue your dream and include that while planning a budget.
Plan a budget to save more
Without a budget, you can’t figure out where your expenses are going. So, list your income and expenses. Then, categorize your expenses and check out how much you’ll be able to save in a month. If you’re satisfied with the result, go ahead with it. Otherwise, try to cut back expenses to save more.
One of the best ways to cut back expenses is to differentiate between your needs and wants. Think carefully! Sometimes a ‘need’ may actually be a ‘want’.
Also, it is quite essential to plan a realistic budget; otherwise, you won’t be able to follow it.
It will help you if you can plan a budget without much difficulty.
You also have to consider certain factors while planning a budget. You need to include a separate category for paying back debt and pursuing your dream.
Do not forget about paying back debt
Working towards achieving a dream is passion; obviously, you’ll leave no stones unturned to attain it.
But, while doing so, you shouldn’t forget about paying back debt. You will have to maintain a balance between the two. Otherwise, you may have to experience severe debt problems and the only way out would be to file bankruptcy.
Calculate the expenses involved
Whatever dream you have, in almost all cases, you will have to bear certain expenses. So, think about it. Will you be able to save that amount along with paying back the debt?
If you think you have a shortage of funds, then you’ll have to look for alternative sources of income.
What I suggest is to have a rough draft of how you want to proceed, how to generate revenue, etc. to achieve your crazy dream.
Plan to generate money along with paying back debt
Most likely you will have to look for additional sources of income. It will help you save to pursue your dream and repay the debt at the same time.
You can look for some side gigs. Browse through the internet to look for additional income opportunities in your spare time. Make sure to stay motivated and achieve work efficiency while working remotely.
You can also start a part-time job to earn a few extra dollars at the end of the month.
Take advice from an experienced person
If you think you can’t repay the debt on your own, you can take professional help. At first, you can go for a credit counseling session, where a counselor can review your financial status and suggest ways to manage your finances in a better way.
Along with it, take the help of an experienced person, if needed, to achieve your dream.
For example, if your dream is to start a business venture, then it is advisable to take help from an experienced person in that field. By doing so, you can come to know the risks involved, expected revenue you can generate during the initial months, what to take care of, what amount to invest, and so on.
Taking help from an experienced person can help you avoid mistakes, and in turn, help you make your business successful.
Make a suitable debt relief plan
When you pay back debts, you can pursue achieving your dreams wholeheartedly. Therefore, make a suitable debt relief plan to repay annoying debts, as soon as possible.
Ask yourself, can you repay your debts in full? If yes, you can consider consolidation to repay your multiple debts through single monthly payments. However, if you can’t repay the outstanding balance in full but want to get out of debt fast, you can opt for settlement.
Another question you need to ask yourself. Do you need help paying off debt? If yes, then contact a debt relief organization and get rid of your debts with professional help.
Before ending, I would like to mention that do not be too harsh on yourself while paying back debt and pursuing your dream. Enjoy life and enjoy your journey of paying back debt and achieving your dream at the same time.