The 2% Rule to Get Debt Free Fast
With the holidays over, many of you are probably looking at your credit card statements and second guessing all those holiday purchases. Debt can get out of control quickly. It’s hard, but not impossible, to dig yourself out of the hole if you’ve made a few financial mistakes. Alex and Cassie Michael, the couple behind the popular blog, The Thrifty Couple, learned this lesson the hard way and paid off almost $100k in debt in just over 3 years. I’m amazed every time I hear their story and they’ve shared everything in their new book, The 2% Rule to Get Debt Free Fast. They sent me a copy of their new book and I’m amazed at how many simple tricks I’m learning to pay down debt, and how engaging their story is.
In our family of 6 kids, we are always looking for ways to save money. We’ve made the mistake of falling into the credit card trap in the past and I remember vividly how much weight that put on my shoulders. When you are in credit card debt, stress follows you everywhere.
Alex and Cassie Michael knew they were in trouble when their credit card was declined on their honeymoon and they couldn’t check out of their hotel. They took out a loan to get through their honeymoon and that started off a chain of, seemingly small, decisions that ultimately put them in almost $100k in consumer debt.
Cassie tried to dig her way out of debt by joining an MLM but instead she was encouraged to invest money she couldn’t afford into it. The business that was suppoosed to save them financially actually just put them into deeper debt and made their situation feel overwhelming.
Their story is so interesting. It reads a bit like a novel and I found myself anxiously reading to see how they would solve their financial problems..
What I love the most about their story (and the way they dug their way out of debt), is that they don’t give solutions that are impossible for anyone else to copy. There are no recommendations for strict budgets, eating nothing but ramen, or living in your parent’s basement. What they offer is a REAL way to get out of debt by making small changes, every month, to create lasting change.
That’s where the 2% rule comes in.
To get out of debt (and stay that way), they recommend decreasing your spending by 2% every month and increasing your income by 2% every month.
Those small changes really add up, especially as you start to get rid of debt and can put the money you were spending on payments towards paying down your remaining debt.
If you are struggling with getting out of debt or just want a book that will give you fantastic perspective as you make money decisions daily, I highly recommend The 2% Rule to Get Debt Free Fast.
Listen to Alex and Cassie Michel talk about their financial journey on this interview from FinCon 2017:
