If you’re serious about paying off debt it means sacrificing spending in some discretionary areas, committing to not using the credit cards that have a high balance for purchases, and even taking action to reduce some required expenses. The Budget sheet helps you understand your planned cash flow and your actual spending from prior periods so you can make decisions around how to adjust your spending and free up extra cash to use toward paying off debt. 

Review your planned cash flow

Check the planned cash flow value on your Budget sheet to see how much money you're planning to have left over at the end of your budget period based on your expected income and expenses. 

Yes I have extra planned cash flow

Increase the planned budget for your Debt Payoff category and then update the Monthly Payment Goal amount on your Debt Progress sheet.

No, I don't have extra planned cash flow

Adjust the planned budget amounts for discretionary categories to free up some cash flow and move it to the Debt Payoff category so you can adjust your Monthly Payment Goal. 

Review your planned cash flow each budget period

Each time you transition to a new budget period repeat this process. The more money you can free up from discretionary spending items the more money you can put toward accelerating your debt freedom journey. 

Congratulations! You’ve taken the first few steps toward a debt free future.

Video Training

Read what's next: Categorizing Debt Payments: Non-Credit Card Debts

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