March 8, 2024

14 Effective Tips To Becoming Debt Free (Debt Management Plan)

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Picture it now (no, really, picture it): Instead of spending all your money on debt payments, you’re building up your savings and paying cash for vacations. No more using your paycheck to pay for the past—you’re enjoying the present and feeling prepared for the future.

Now, becoming debt free and achieve financial freedom sounds like a good life! And I’m here to tell you it’s not only possible— it’s inevitable if you follow the right debt management plan.

Want to get out of debt? I’ve got 14 ways to help you become debt free. I’ll be real with you: It’s going to take some hard work and determination. But it’s totally worth it!

1. Facts you’ve got to be aware of first before becoming debt free.

FACT: Monthly payments are depressing. 

FACT: Working hard just to stay in place – i.e. using your precious income to pay off debt – is depressing. 

FACT: Debt sucks! So that’s why I’ve got a plan to get you out of it. (Yes, it worked for me first, and that’s how I know it’ll work for you too.)

2. Money information is largely common sense.

This information will help you to improve your financial situation and change your life but c’mon now.

It’s been said that there is no such thing as an original idea any more and while I don’t agree wholeheartedly with that premise, I’ll give you this: When it comes to being ‘good with money’, and achieve financial freedom you sure don’t have to be a genius.

You don’t need a three-figure IQ to understand this advice. You don’t need to be a mad scientist, a smarty-pants, or an accountant.

I haven’t ‘created’ a ‘miracle cure’ for your debt and then couched it in fashionable jargon just to make it all seem that much more exciting.

Instead, I’ve taken COMMON-SENSE ideas and packaged them up in a way that ought to make sense.

3. Debt reduction is SIMPLE, but not always EASY.

If you are a spendthrift, then getting rid of your debt will be harder for you than for other people.

Remember, new skillsets take time to refine. The pilot flying the 747 didn’t learn how to manage a cockpit overnight.

Your dentist sure didn’t learn how to refine porcelain veneers in 30 minutes. And Warren Buffet, the richest man in the world, didn’t create his fortune in the time it takes to cook a casserole either.

It takes time to learn how to do new things whether it's learning to destroy debt or driving a car. And the learning process is rarely comfortable, for ANY of us.

We humans don’t like change even when it’s for our own good. Yep: you could call it a design flaw. (It’s little ‘personality quirks’ like this that make me wonder how on earth we managed to outsmart the saber-toothed tiger all those years ago!)

But whatever: life is what it is, and we are what we are. And getting control of your money is one of the most rewarding skillsets you will EVER learn because once you’ve got the knack, your life will become a VERY comfortable, easy, and you'll stay calm and relaxed.

Not only will YOU feel better, more productive and creative. Why? Simply: your lack of money worries will automatically make you a better parent, lover, spouse, friend, and colleague. Why again?

Easy: because worry makes people grouchy, tired, old, and anxious.

Such people are rarely much fun to hang out with, cohabit with, make love to, or work alongside.

But carefree people are a blast! Not only do they stop sweating the small stuff, but they’re patient, focused, creative, energetic, and willing to laugh long and loud at just about anything.

If you would like to be more like this, then this article will be of keen interest to you, because it’s going to give you the information you need to make that lifestyle a reality for you.

So just remember: skillsets take time to master, but the rewards are MORE than worth it.

Before long, you’ll be addicted to the feelings of comfort, wealth, and security you’ll receive from following my instructions.

And now, with that caveat out of the way, let’s get into how we can make your life better and your bank-account fatter!

If you want to be secure, become debt-free, and to have enough money in the bank to retire early, DO THIS BEFORE ANYTHING ELSE

4. For Debt Implosion and Wealth Explosion: TAKE TEN PERCENT AND PUT IT TO WORK FOR YOU

To be wealthy and secure, all you have to do is save 10% of your income.

That’s no joke, and I’m not exaggerating. It is the SINGLE MOST IMPORTANT THING you will EVER DO. (Of course, there are many other things you can do also – but this is, without a doubt, the most important one.)

Why ten percent? Why not eight percent, five percent, fifty percent? We’ve gotta be practical, for a start: anything more than ten percent and people generally start to feel the ‘pinch’.

If you go from saving ‘zero percent’ to saving ‘fifteen percent’, say, you’ll know that something’s different and you’ll probably complain about it.

But there’s something about TEN percent that’s like the ‘magic figure’: you can take it out of someone’s pay, and they won’t even NOTICE.

(Well … they’ll notice for the first week, and THEN they’ll forget about it.)

There’s just something magical about 10%. Not only is it a small enough figure to be subtracted from your pay without you noticing (on this, more in a moment) but it’s also a BIG enough figure to make things happen very QUICKLY.

When you’re putting ten percent of your net income to work for you – crushing the debt boulder, fattening the savings account – the numbers tend to shrink (or grow) very quickly and, instant gratification being what it is, it’s very SATISFYING to see yourself making changes so fast.

It’s a wonderful incentive. As for ‘not even missing’ that ten percent – yup. It’s really true.

Everyone notices it the first time it happens … but generally, after week two or three, it’s faded into the background and you don’t even notice it’s not there any more.

Hundreds of people around the world have documented this phenomenon – just check any other ‘wealth and finance’ self-help book and you’ll see further proof written in plain English, right in front of your face.

You won’t notice it. I promise.

So part one of step one: save ten percent. Take it from your income here’s the clincher before you pay anyone else.

This is known as ‘paying yourself first’, and - ESPECIALLY if money is a bit tight - it’s the only way to make sure that you get that all-important ten percent saved.

That means that before the rent comes out, the groceries, the car payment, whatever, your ten percent comes out first and goes somewhere safe where you can’t spend it by accident. Ten percent.

Before anything else. That’s the key to your future wealth. Complain about it if you like; but if ten percent is all it takes to be wealthy and secure inside of five years, then I’d say happiness and relief are more in order.

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5. For Debt Implosion and Wealth Explosion: TAKE THAT TEN PERCENT AND PUT IT WHERE IT’LL GROW.

Yep: the ten percent you save each paycheck is going to get invested.

That’s how you’ll get RICH: money doesn’t grow fast enough in savings accounts (unless you have so much money in there already that it doesn’t matter.)

But when you INVEST money, your nickels are going to breed with your quarters and give birth to dollars.

Don’t switch off when you hear the word ‘invest’ – I’m not kidding. It’s easy. Look, I’ve dumbed it right down – it’s hardly even boring. Just take a look.

The easiest, most idiot-proof way to get investing now – no matter how broke you are, or how little you know about money – is to speak to your bank about an Automatic Investment Plan.

This means that you choose what level of risk (the likelihood your money will vanish) versus return (free money from the investment) you get.

Usually, the faster the return, the bigger the risk.

In an Automatic Investment Plan, your investments are managed by someone else for a small fee – usually, one percent per annum. It’s highly affordable. And the best part?

Once you have your first meeting with them, where they talk you through what investments to choose from, you never have to think about it again. Your money gets fatter and your debt reduces without you even THINKING. about it.

6. You Don’t Need Much Money to Get Started. At All.

Here is what you will need to invest in an Automatic Investment Plan and become debt free slowly.

  1. Start-up capital of some kind, usually between $1000 to $2,000. If you don’t have this right now, save it up. Start today. 
  2. A regular deposit for the investment plan (usually $200 a month, minimum.)

7. With an Investment Portfolio, Your Money Is Growing QUICKLY and Debt is reducing QUICKLY too.

When your money is being invested – not just saved in an account somewhere – that means it’s growing every day.

If you re-invest the returns, you can make enough money to retire early and live off without working for the rest of your life. It’s THAT EASY.

Most people aren’t doing it because they can’t be bothered finding out how basic investments work – as soon as they hear the word ‘investment’, their eyes glaze over and they come up with a bunch of reasons why they can’t invest.

But YOU can. Save up the start-up capital now – five hundred to a thousand bucks – and when you’ve got it, talk to your bank about an Automatic Investment Plan. (You can also Google the words ‘Automatic Investment Plan’ and investigate online about who you want to use to choose and manage your investments; but most new investors are too nervous to explore on their own. It’s just too scary and boring.)

The most important thing to do is to START NOW – so if that means you go with your bank, instead of some fancy-pants brokerage firm, then go with the bank. You can change in future if you want to.

Don’t worry about the fine print right now, just GET STARTED if you really want to get out of debt and become debt free quickly and easily.

8. Don’t Worry About Market Fluctuations – You’re Investing Long Term (Which Means Your Money Will Grow No Matter What!)

Fluctuations in the market’ means your money goes up and down: sometimes you have more, sometimes you have less.

This is only dangerous if you’re investing a lot of money short-term. Since you’re not investing short-term (because it’s so risky!), the market fluctuations won’t affect you.

Quite literally, you just don’t need to worry about it. It’s that simple.

As long as you continue making regular deposits into your investment fund, you win no matter what happens: when the market is down (people are losing money), your manager will snap up new units and stocks at low prices – you win; and when the market goes up again, you’ll have more stock which is worth more than ever – again, you win.

It’s win-win. Just invest LONG-TERM, and START NOW because it indirectly a debt management plan that will work in your favor in a disguise way.

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9. Invest Long-Term: Think ‘Retirement Money’, Not ‘Holiday Cash’.

Short-term investments are risky and don’t often pay off; long-term investments are safe and will ensure your future.

Note: you will be enjoying the rewards of this investment soon (like when you retire super early and don’t have to work any more!) but this isn’t about blowing the money on impulse buys or house payments today.

This is money which one day will replace your job - which is why your investment will always be LONG-TERM - you will have financial freedom and zero debt.

So when you talk to your investment manager, explain that you want:

  1. An automatic investment plan (whereby your investments are managed by other people, so you don’t even have to think about it.) 
  2. To buy ‘units’ in that fund (the more money you invest, the more units are bought) by making regular contributions.
  3. To invest in a fund with low to medium risk, and long-term returns.
  4. To invest in a fund with exposure to more than one investment sector, to reduce your risk (all investment sectors respond differently to changing economic and market conditions, so it’s best to invest in more than one.) For example, a balanced, low to medium risk fund might include investment in cash, bonds, property, domestic and international shares, and global commodities.

10. For Debt Implosion and Wealth Explosion: TAKE TEN PERCENT TO IMPLODE YOUR DEBT.

It’s all very well to save money and be careful with credit – in fact, it’s VITALLY NECESSARY.

But if you have a debt millstone around your neck, it isn’t going to shrink away unless you pay it some cold, hard attention in the form of cold, hard cash.

Yup: you got to start chipping away at the debt boulder. And the bigger the mallet, the faster it’ll vanish.

That means that the more money you put towards that debt, the faster it’ll be gone and the less you’ll have paid in interest over time which means more money for YOU! Hooray!

Again, this is nothing but the most basic common sense. But when you’re juggling multiple debts, plus basic expenses like rent, groceries, and utilities, plus a car, plus kids, dogs, whatever it’s surprisingly easy to just pay the minimum payment ‘for now’ and worry about it tomorrow.

But guess what? This is the best way to ensure that you keep paying off that debt FOREVER! Because that’s what the credit companies WANT you to do.

They don’t want you to pay off your debt quickly with a minimum of interest payments. They want to keep their hand in your pocket forever. And if you make the minimum monthly payments on ANYTHING, then that’s exactly what you’re allowing them to do: to nickel and dime you out of your future wealth.

To avoid this cul-de-sac of a future bank account, you’ve got to take the bull by the horns and allot a significant chunk of your income towards debt implosion.

I’ve spoken of this before: you need to allocate enough money to destroy debt by attacking the principle of the debt, WITHOUT pinching yourself so badly that you can no longer enjoy your life.

Because this is your life right now. It’s not a rehearsal: this is the real deal. And if you haven’t got enough money left over for the occasional ice-cream cone or new lipstick, then something’s got to give! 

Ten percent, net, is a good place to aim for. (That’s ten percent net of your entire income, not what’s left over after you’ve paid for all the other necessaries.)

And if you can’t do ten percent right now? Do one percent. Do three percent. Do ANYTHING, as long as you – that’s right – START NOW to become debt free and attain financial freedom.

11. for Debt Implosion and Wealth Explosion: LIVE WITHIN YOUR MEANS, ALWAYS.

There are men and women earning $15,000 a year who feel broke and men and women earning $150,000 a year who feel broke.

Financially, there is NO DIFFERENCE between them. Why? Because they’re all living outside their means.

They earn their money, whether it’s $15,000 or $150,000; they spend it all; and then they rely on consumer credit to get them out of the hole (for now.)

Read my lips: It doesn’t matter what you EARN. It matters how you LIVE.

If you’re spending above your means, you could be earning three million a year and be in hot water up to your neck. It’s how you live that counts – not the income.

So unless you like being broke - WHATEVER you’re earning – you’ve got to live within your means to become debt free and enjoy financial freedom.

That means:

  1. Avoiding credit cards
  2. Avoiding consumer credit offers (instore ‘buy now, pay later’ deals)
  3. Avoiding ALL forms of expenditure unless they are CASH BASED. 

This might mean you have to make some stern adjustments to your lifestyle; or it might mean that you make a few, very small ones. Whatever your case is, let’s clarify what I mean by ‘cash’:

  1. The contents of your billfold 
  2. A debit or EFTPOS card That’s it. 

Everything else – even checks – are credit.

12. Why do checks count as credit?

Because it’s so easy to get into trouble using checks. With a debit card, your purchase is instantly declined if you lack the funds in your account. With bills and coins, it’s even easier to see if you have enough.

But a check can be written and you never know it’s bounced until three days later – by which time you’ve written five more checks, and are now in the hole for three hundred dollars.

13. To reduce debt be careful with debit cards.

Even though they’re marketed as ‘just like cash’, they’re really not. With a debit card, you can’t see how much money you’ve got left.

And unless you only JUST checked your balance, there will almost always be a faint question in the back of your mind – ‘Am I going to get declined at the till?’ - when you go up to pay with your card.

Because you can’t see how much you’ve got left, it’s easy to overspend without even knowing it.

Of course, you could always keep a running tally, but that’s boring and completely at odds with actually ENJOYING spending your money – which is what it’s there for, right?

Be careful with anything that’s not CASH. If it’s not cash, you can’t see how much is left, and that makes for uneasy spending and easy budgetary blowouts.

Plus, some debit cards are attached to a line of credit – which means you don’t get ‘declined’, but when you go over the limit of the funds available, you simply go into an overdraft you didn’t even know you had.

And then BANGO! All of a sudden, you’re in hock again. Just be careful. And remember: CASH IS THE ONLY TRULY SAFE OPTION to destroy debt and avoid it completely.

14. To live within your means, you must avoid credit in ALL FORMS.

Don’t borrow money – from banks, credit unions, your husband, anyone. Just live on what you have. If you run out, earn more.

This is the way to a wealthy, secure future – even though it might feel cold, scary, and uncomfortable right now.

If you do these 14 things – take ten percent and make it work for you; invest that ten percent (and re-invest the returns); and avoid credit – you will have paid off your debt and be living a wealthy, secure, sane lifestyle within few years.

I will stop here. If you loved reading this step-by-step guide on becoming debt free please do not forget to share and comment your thoughts.

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Manish Yadav


My name is Manish Yadav and I’m the owner of the blog "Love Finds its Way". My advice does away with the manipulations and mind games recommended by magazines and the surface level advice of TV gurus… We’ll dive DEEP to you actionable steps you can use today. Over 900,000 men & women have transformed their lives, and I've been featured in Lifehack, Return of Kings, Menimprovement, Urban Dater, and so on...
...My only intention is to help you have all of achieve your dreams and desires and live a beautiful and prosperous life.
And we’re just getting started!

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