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I became debt-free in eight months and it took a lot of planning from the previous year. However, it was very simple because of the method I used.
This post is going to be the shortest you’ve ever read because I am in a hurry to go do some other things. Just being sincere, time is not my best friend and it’s not yours either so why should we waste it?
2018 was tough on me, it came with a lot of bills. And this got me into some debt. So my New Year resolution for 2019 was to clear the debts ASAP.
That was what I did, worked on it as soon as the year began, and in February I was singing Hallelujah my debts are gone.
Get comfier as I am about to tell you how I did it
I became debt-free with my cooperative society savings.
This is one of the fastest ways to save money for a short period. It is very flexible. The bad news is I am not going to tell you how it works as this post is not meant for that. The good news is I have written about it in detail here.
However, here is a sneak peek of what it’s all about. Cooperative saving needs a work environment. As it needs you to give out some percentage of your income depending on how much you earn.
The best result is when you and your colleagues( at least three of you) decide to do it. It could also be with friends out of work, but they have to be earning an income so there won’t be any disappointment.
This is how you can be debt-free with a cooperative savings
plan ahead of time. As I had said from the beginning. Every successful thing was planned no good thing happens by mistake.
You need to know how much you would need to clear your debt as it will determine the amount you save.
For instance, your debt is 5000 and you want to clear it within a year. Then you need four colleagues or friends plus five of you contributing 500 for 10 months. Since you are five in number then you go two turns. In the first 5 months, you get 2500 and in the second 5 months, you get 2500.
If you find what I just said confusing, you haven’t read the post I recommended. Read it!
The cooperative saving can be more or less than the amount stated above and for fewer months. Because our earning defers and debts vary too. It sounds easy, yes it is but you have to be mindful of some things.
A little warning about a cooperative society
Don’t be scared, It is only good of me to tell you some problems you can encounter. Everything has an advantage and disadvantages but I assure you the advantages are greater. However, here are a few things to put in mind;
- You are not going to temper your income the way you did before. For some months some percentage of your income will not be yours as you are putting it away. So you have to cut down on your spending. This is only for a short time remember so you can survive without some things. Make your budget and know what can be cut down
- If you don’t take the above-mentioned seriously, you could end up in more debt.
- Trust the people you are going to do this with or create a channel to make sure no one disappoints you.
- Don’t be too excited to do this, that you give more than you can afford. If your income can allow you to save 500 don’t give more than that. Or you suffer it and might likely go into debt again
Conclusion on how I became debt-free in eight months
We have come to the end of this post and I hope you understand that to become debt-free in a very short period is possible and needs a good amount of planning. Also, to make the cooperative society savings work for you, you must follow its guidelines. If you have any questions please leave a comment I will attend to it ASAP.