This is the last step in my pay down debt faster series.
So far I talked about cutting spending, increasing income, selling stuff, pausing saving/investing and barterting.
All of these steps have helped me get a jump start towards becoming debt free in 2012!
In part six, I’m talking about using found money.
What is found money exactly? It’s any and all money that is unexpected or “found”.
Here are some examples:
Cash back, gift cards and rebates
I get 2% cash back on all my debit card purchases from PerkStreet Financial. Last year I used $50 in rewards, towards purchasing a new laptop.
Then at the beginning of this year I cashed in another $100, which I put directly towards my loan. Rebates from products and online shopping rewards are also examples of found money.
Leftover gift cards and certificates from the holidays can add up too. Every little bit of cash rewards and rebates counts as found money.
Change from a coin jar
I use cash for all my discretionary spending, like eating out or buying coffee, so I end up with lots of change.
I keep all my coins in my digital coin jar
A tax refund
It’s hard to perfectly calculate if you’re going to owe the IRS or get a small refund each year.
Anytime I do get a small refund, I use that found money towards paying off debt or put into savings. It’s unexpected and kind of like a surprise bonus.
Yard sale profits
Yard sales can turn a good profit if you have lots of quality items and know how to maximize it.
Around Thanksgiving last year, I cheated a little and threw some of my stuff in with my sister’s yard sale. It took a good portion of a Saturday morning but I made an extra $51.
Birthday money and gifts
Anniversaries, birthdays and special events are great occasions for getting found money. My parents are the kind of people that always give us kids money instead of presents.
My birthday was in January so I got some nice gifts and money, all of which can be considered found money.
Steps to pay down debt faster
My six part plan to pay my debt down faster includes:
- Part one – Cut excessive spending
- Part two – Increase income
- Part three – Sell stuff
- Part four – Pause saving and investing
- Part five – Bartering
- Part six – Use found money
Finding extra money to throw towards debt can come from lots of places, and these are just a few examples.
Now that I’ve covered my six step plan, I should be debt free very soon. I will continue with my monthly loan updates, and sharing my progress.
What kind of money have you recently found?
Photo Credit: Magnus D
