If you’ve read any of my blog posts, you know that I’m on a $30,000 Journey to Debt Freedom. Part of that journey involves me seeking new ways to earn extra income. And, a little over two months ago, I came across Robinhood. If you haven’t heard of it, it’s an amazing app that allows you to trade stocks, stock options and cryptocurrencies for free. It works with both Android and iPhone. And, it has simplistic tutorials that can help in your decision-making.
Let me just preface the rest of this post by saying that I’m not a financial advisor and I would never tell anyone to buy this stock or that option. But, I am going to share with you what I’ve learned using Robinhood and hope that it encourages you to do your research and act accordingly.
What I Learned Using Robinhood
Options offer more leverage than stocks.
With options, you’re able to purchase contracts that allow you to effectively control 100 shares of a certain stock, at a certain price, up until a certain date for a fraction of what it would cost to actually own the shares. I know that may sound a bit confusing, but I want you to do some research on options so that you can be informed for yourself.
Hello out there everyone. I’m super excited to start this blog and a new chapter in my life. But, along with that comes a brutally honest assessment of my finances. Deep breath…
$35,379.73. Three months ago, that was my number. That’s how much I owed. $7,950 in credit card debt. $5,642.36 in student loans. And, I had just acquired a $21,787.37 auto loan. Exhale…
It was a ton of money, and my creditors had me believing it was no big deal. At least that’s the impression I got each time they increased my credit limit or offered me special interest rates. But, it was a huge deal. It was $635.84 a month worth of a huge deal. And that was me only making minimum payments, which I can’t in good conscience recommend anyone do. I needed a change.
And that’s when I came up with a plan to get rid of my debt.
$31,951.76. That’s my number now.
In a little over three months, I was able to reduce my debt by almost $3,500 and here’s some of what I’ve been doing.
How I’m Reducing My $30,000 in Debt
1. I found out where my money was going.
The first thing I did was go over my bank and credit card statements with a fine-toothed comb. It didn’t take long for me to see where my money was going. Restaurants. On average, I had been spending $20 a day on fast food and nearly $100 a week at Pappasitos and Lupe Tortilla. More than 60% of my credit card charges went to restaurants or Jamba Juice. Yikes!
My other expenses included my tithe, rent, cellphone bill, insurance premiums and minimum credit card payments. I didn’t have any lavish retail purchases or any other bad spending habits. Food was hands down my biggest expense and I needed to change that. So…