Let me share a post I've shared with others:
First let's understand the idea of a money pit. Money pits drain your accounts on a consistent basis without actually making more money. Analyze your spending, can you find any more money pits you're falling into? In fact all of your spending falls into one type of money pit or another. The first thing I suggest is to get rid of your animals and animal insurance. They're considered money pits, gyms also. Replacements: get a hamster they cost 20 bucks, food water and bedding are relatively free. Use your back yard to work out. I don't care if you have to lift logs or do calisthenics. Better yet replace the car with a bicycle! Not only do you get a workout, you save on gas, insurance, and 16000 dollars. That 16000 dollars should be put down towards your debts.
Next, Find a cell plan for 10 bucks, there are many out there. If you get rid of your car don't worry about gas that's more money in the pocket. Entertainment should be free, download movies/music and go to bars for free. Never buy drinks or eat out at restaurants. Bring your own food to work. Always cook meals. You must strip your spending to bare bones. Finally, never buy new clothes until your old clothes are spent. That takes 5-10 years before you actually need new clothes. The most dangerous money pit of them all, is your mortgage and home maintenance. Think of all the money you'd save if you rented, until your income goes up and you can afford to pay the maintenance and mortgage payments, it's best to rent small.
Now, let's understand the idea of a money hill. Money hills make you more money. On a money hill, money grows taller and taller and climbs up the hill. Let's look at an example. Renting out a room in your new house could provide 600$ of extra income per month. Putting the money you've saved on your car, could pay off your debts at the same time, send $5000 to make you more money in stocks. Selling things off that you hardly use, and never purchasing things that you only use once are money hills.
Most importantly, Start a side business outside of work, whether it's a passive income, writing, or selling products. You must go to war on your debts. If you're in debt, you must face the reality, you can't afford the things you have. As painful as it is, you must cut your spending and increase your income. If you cut the excess spending and still find yourself barely scraping by, the source of your money pit is your mortgage. It is not sustainable on a 2800/mo salary. Best of luck on your money growing journey ~
XOXO,
the finance guy.