The 5-step plan to pay off credit card debt faster and cheaper starts with this . . .

Slay Debt with Our Spending Analysis Tool

  January 1, 2018  |    #Tools

Meet our debt slaying spending analysis

Other people think you’re doing well. Your income is high and you have a good job, but you don’t feel rich. Our debt crushing tool will show you where all your money is going and how to use your money better.

The spending analysis was our first step to become debt free

After we admitted that we had $51,000 of credit card debt and felt poor, we asked ourselves how this could be. We were two financial services professionals making decent money. Where was our money going, and why did it feel like we never had any?

Being the number cruncher that David is, he grabbed all our statements and got access to all our accounts everywhere. From every single credit card account to our 401(k)s to our tiny and frequently overdrawn checking account, he got it all. Then, he put every single expense for an entire year under several headings or spending categories on an Excel spreadsheet.

Every. Single. Expense.

Other than $1,600 a month in ATM withdrawals, we identified why and how we spent every dollar that year. We could make educated guesses on how we spent our ATM withdrawals:

  • Taxies to clubs
  • Cash for door queens at clubs
  • Entrance fees to clubs
  • Partying in clubs
  • Drinks at clubs
  • Tips to bartenders at clubs
  • Gatorade at 7-11 after the clubs

See a pattern? With our spending analysis, we clearly saw a pattern. When everything single expense was itemized, we were shocked. We were making good money. We were just spending poorly or unconsciously.

All along we were blaming our employer. It was our bosses fault. It was the President of the United State’s fault. It was everyone’s fault but ours. Turns out, it wasn’t them. It was us.

For many of us, our problem is our spending and not our income. This is why a spending analysis is important.

The analysis of our spending analysis

Even though we were spending $400 a week groceries, we were spending $400 a week dining out. That’s $3,200 a month on food for two (formerly) skinny men. How does that happen?

Then, I was spending $300 to $600 a month on new clothes to wear to the clubs or when we traveled or when we went out for dinner or whenever I could find a reason to buy more clothes.

You might say we were assholes. While that’s true, we were masking our pain with spending, clothes and clubs.

If you do your own spending analysis, we bet you’ll be surprised where all your money is going. It’s easy to dismiss – even ignore – bad spending habits.

“Oh, it’s just a little here and there.” Or, “it’s just this once.” Another favorite is, “Hey, we’re on vacation!”

Sound familiar? We’re all probably due for a spending analysis.

The value of our spending analysis

Why would anyone torture themselves buried for six hours in account statements and itemizing every expense? Our goal was to see WTF all our money was going. That’s exactly what we did.

But, the real value was discovering that with a few changes in our behavior and consciousness, we could pay off our $51,000 of debt within three years. We did exactly that, too.

We first lowered our credit card interest rates to 0% through our Debt Lasso Method. So, rather than send $10,000 a year in interest payments to credit card companies, we directed that $10,000 to our debt.

Then, we because meticulous with grocery shopping, using a grocery list and menu every week built off only sale items or when we had coupons.

Next, we stopped going out as much. We didn’t stop going out. We just stopped going out as much.

Finally, we started looking for free and cheap things to do that were fun but not as costly.

We then paid off all our in two and a half years. We were 100% debt free and our lives were changed forever for the better. We credit all that to our spending analysis. So, our advice is for you to do your own spending analysis, too.

It can’t get any easier than that, and your transformation will be bigger and better than you expect.

One response to “Slay Debt with Our Spending Analysis Tool

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The 5-step plan to pay off credit card debt faster and cheaper starts with this . . .