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6 Steps To Eliminate Debt And Enjoy Financial Freedom For New Parents

Updated on January 21, 2013
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I'm a dad, husband, and Christian first. The rest is just life's add-ons: an educator, administrator, learning & development professional.

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Debt statsistics that will blow your mind

In 2010, a consumer census showed that approximately $2.4 trillion was the total debt of Americans. This actually translates to $7,800 per person living in the United States. Moreover, it is important to mention that this is just consumer debt. This means, loans and real estate debts are not yet included here!

If you have not taken immediate control of your finances, perhaps now is the time. But the real question is how you will get out of debt without putting additional strain. Instead of waiting for the government to bail you out – which is unlikely to happen, you’d better start making changes now.

1. Have a financial goal

It’s prudent to just think of paying off your debt. But the truth is you need to deal with the matter in a more aggressive way. How much savings do you want? Yes, don’t just think off eliminating debt, rather, think of your financial emancipation.

Likewise, put a date to this goal of yours. This way, you get to see how far close or how far you are from your target. In addition, placing a date to your goal will help make it more concrete.

Furthermore, be realistic with your goal. It is always a good idea to challenge your self beyond mediocre. Put everything in the equation from your current debt, sources of income and expenses so you can determine what is feasible.

2. Determine the distance from success

Next, it is imperative to put a concrete distance between your current status and your goal. This goes beyond merely setting the date. Rather, objectively evaluate how far off you are from your target. This will give you a better inkling on what change you need to do. However, don’t be discouraged if you see you’re light years away.

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3. Plot your course

Once you have determined where you are and where you want to go, it’s time to plot your course. This is best done by looking into your current financial activities. This includes your expenditures, loans, and everything that involves money and investment. Moreover, you need to check your financial habits. Next, you have to identify all the changes that have to take place. Even the simplest things matters - from buying designer clothes versus going for functional garments to dining out or cooking at home.

You realize that some lifestyle changes are in order. You might not like it at first, but you’ll thank yourself in the future for making the right move.

4. Go do it

It’s now time for you to put your plans into actions. Of course, this will be easier with all your friends and family behind you. The changes you’ve identified will definitely be difficult at first, but your tenacity and your fear of going broke will help you through it.

Remember that surviving debt requires commitment. But this can be testing so get as much support as you can get. Surround your self with motivators from your family friends and even the thought of financial freedom can push towards success.

5. Check where you are often

Anther important step is to constantly check your bearings. Are you on track or are you drifting away from your goal. This helps put your target in constant check. Remember that reaching your financial goal is a process. As such, you need to be aware where you are at all times. It’s easy to get derailed. So always be on the look out for any changes that might hamper your success.

6. Make changes when needed

When ever needed, adjust your activities or your actions. This will help fine-tune your steps towards erasing your debt. Furthermore, this will help lessen the stresses that you will face during the journey.

I know only a few people who are without debt. They have made the transition from a mere statistic to financial freedom not over night. Rather, the journey was arduous but it ended with financial emancipation.

Families need to recognize the importance of having financial security. As a new dad, I felt the stress of having to provide for my family. What's great is that i have a wonderful wife who supports and help me every step of the way.

Quick Queries:

  1. What's the greatest hindrance to your financial freedom?
  2. What are you doing right now to get your finances on the right path?


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    • jpcmc profile image

      JP Carlos 4 years ago from Quezon CIty, Phlippines

      Hello GiblinGirl,

      Good luck on your plans of having kids. Yes, it's better to start planning fro your finances even before you have a baby. It's a lot easier this way.

    • GiblinGirl profile image

      GiblinGirl 4 years ago from New Jersey

      Great tips. My husband and I do plan on having kids so getting into good financial habits will definitely be essential.

    • jpcmc profile image

      JP Carlos 4 years ago from Quezon CIty, Phlippines

      Hi there twoseven,

      It does have more meaning to be financially secured when you have kids. It's one thing to save up of personal wants and needs, but it's another to actually provide for your kids' needs and wants. From clothes, food down to education and health, it's a serious business having kids. being financially stable is important. These tips on eliminating debt is just the basics. we can be creative in how we go about it.

    • jpcmc profile image

      JP Carlos 4 years ago from Quezon CIty, Phlippines

      Hi there stephanieb27,

      Mortgages often eat a huge part of our budget. I hope the tips here help. good luck on your road to financial freedom. Perhaps you can share with us the difficulties and of course your strategies on how to eliminate debt. I'm sure we will all learn. Thanks for dropping by.

    • jpcmc profile image

      JP Carlos 4 years ago from Quezon CIty, Phlippines


      Nice of you to drop by. I do hope more people get to experience financial freedom. Eliminating debt is a powerful step in attaining this.

    • twoseven profile image

      twoseven 4 years ago from Madison, Wisconsin

      Great ideas. It does take on a new importance as you have kids. Not only do I want to have enough money to provide for them, I also want to be a role model of good financial habits. You provide great tips on how to do just that.

    • stephanieb27 profile image

      stephanieb27 4 years ago from United States

      Working on paying off our final debt- our mortgage! Great suggestions!!!!

    • profile image 4 years ago

      Sound advice thanks for sharing it jpcmc