The Ultimate

Guide to Debt
Payoff
Practical Steps
Towards Financial
Freedom
Introduction
Thank you for downloading The Ultimate Guide to Debt
Payoff!

I’m Anthony O’Neal, author, course creator, debt-free

advocate, and host, and I’m so happy to meet you!

As someone who knows what it’s like carrying crippling

amounts of debt, I’ve dedicated my life to helping others
navigate their way towards true financial freedom.

There was a point in my life when I was living in the backseat

of my car, feeling lost and helpless. I was 19 years old and
35,000 dollars in debt. But, God!

I’ve been blessed by mentors, teachers and spiritual leaders

who spoke abundance over me, taught me and guided me on
my path.

It’s only right that I pay that blessing forward.

I’m not aiming for perfection, but I want you to get your
money neat!

Consider this guide a gesture from me to you and a sign that

your debt-free journey starts now.

Let’s get to work.

AO

Anthony O’Neal
Table
of contents
I. DEBT 101 05
WHAT IS DEBT? 05

EXAMPLES OF DEBT 05

WHAT ARE THE 4 MAIN CATEGORIES OF DEBT? 05

THE MYTH: GOOD DEBT VS. BAD DEBT 06

WARNING SIGNS 07

TYPES OF DEBT 08

HOW TO GET OUT OF DEBT 11

How to create a zero-based budget 11

How to live below your means 12
Ways to get out of credit card debt step-by-step 13

DAVE RAMSEY’S 7 BABY STEPS 15

II. HOW TO BUILD WEALTH THROUGH INVESTING 17
HOW TO MAKE MONEY IN STOCKS? 17

WHAT ARE INDEX FUNDS? 18

WHAT ARE MUTUAL FUNDS? 19

Main advantages of mutual funds 19

WHAT IS A CRYPTOCURRENCY OR NON-FUNGIBLE TOKENS 19

(NFTS)?

Why I don’t recommend investing in crypto or NFTs as your primary 20

investing strategy

WHAT IS THE BEST WAY TO INVEST FOR YOUR RETIREMENT? 21

WHAT IS THE DIFFERENCE BETWEEN A 401(K) AND AN IRA? 22

WHAT IS AN HSA? 22

III. FINANCIAL FREEDOM REFLECTION QUESTIONS 24

IV. WHAT THE BIBLE SAYS ABOUT MANAGING FINANCES 27
V. BUDGET WORKBOOK & EXPENSE LIST 33
NOTES 46
THE ULTIMATE GUIDE TO DEBT PAYOFF 05

Debt 101
WHAT IS DEBT?
According to the Oxford dictionary, debt is something (typically money) that is
owed or due and must be paid off by a deadline.

EXAMPLES OF DEBT
LONG-TERM DEBT This is also known as long-term liabilities. Long-term debt
typically refers to any financial obligations that extend beyond a
12-month period, or beyond the current business year.

SHORT-TERM DEBT Commonly known as short-term liabilities, short-term debt refers

to any financial obligations that are due within a 12-month period,
or within the current business year.

WHAT ARE THE 4 MAIN CATEGORIES OF DEBT?

SECURED DEBT Secured debt is any debt backed by an asset for collateral
purposes.

Example

A car loan. The lender gives you the money to

purchase the car with the condition that if you don’t
pay it back, they can repossess the asset.

UNSECURED DEBT Unsecured debt lacks any collateral. When a lender makes a
loan with zero collateral, it puts faith in the borrower’s ability to
eventually repay the loan.

Example

Medical bills, credit cards.

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REVOLVING DEBT Revolving debt is an agreement made between a lender and

consumer that allows the consumer to borrow an amount up to a
maximum limit on a recurring basis.

Example

Home equity loan.

MORTGAGES The most common and largest consumer debt. Mortgages are
loans made to purchase homes, with the property itself serving
as collateral.

THE MYTH: GOOD DEBT VS. BAD DEBT

Today, a lot of people think there are two categories of debt: good debt and bad debt. The
general idea is good debt has the potential to increase your net worth or enhance your quality
of life.

Some folks consider a credit card as good debt if they only use it for emergencies.

Well, I don’t mean to hurt anyone’s feelings, but debt is debt.

The only type of debt I support personally is a mortgage! Why? Because it’s an asset that
increases your chances at generational wealth and can be passed down to your kids.

REFLECTION
QUESTION
How much debt
have you taken on
simply because
you were under
the impression that
it was considered
“good debt”?
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JOURNAL
PROMPT
How would your
life be different
if you had more
access to financial
literacy education
in your formative
years? Why do you
think these skills
aren’t taught to the
youth?

WARNING SIGNS
Debt, unfortunately, is extremely common and oftentimes unavoidable. I’d probably guess that
money, finances and debt are the top causes for anxiety for most American families.

Not all debt is extreme, however, and any debt, with strategy and persistence, can be
overcome.

Here are some warning signs that your debt is out of control:

• I don’t know how much money I actually owe.

• I only pay the minimum due on my credit cards.
• I miss payments or bounce checks or overdraft my account.
• I use credit card cards to pay for my basic “needs”.

If you feel that your debt is too much to carry, please seek the advice of a trained financial
advisor.
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SCARY STAT

58%
live paycheck to paycheck
150
MILLION ADULTS According to a LENDING CLUB REPORT from
May 2022, 58% of Americans — around 150
million adults — live paycheck to paycheck.

TYPES OF DEBT
01 Credit cards

In general, credit card debts are unsecured debts. Companies offering credit cards charge
high interest on unpaid amounts and require a minimum monthly payment. Sometimes debt
consolidation can be considered to manage your debt, but it’s often a ploy to get you to pay
more interest over time, so beware.

SCARY STAT

500M
credit card accounts
1X 2X
There are over 500 million open credit card
accounts in the U.S., and 191 million Americans
have at least one credit card — half of all
Americans have at least two, according to the
New York Fed.

02 Student loans

A student loan refers to an unsecured debt but is considered “good debt” because it will
hopefully help you earn a higher salary.
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REFLECTION
QUESTION
Do you have a plan
in place so that your
children won’t need
to rely on student
loans to get a
college degree?

03 Personal loans and payday advances

Personal loans may be taken to cover the costs of all kinds of things, like renovating your
home, paying bills or consolidating debt.

Depending on the circumstances, these loans can be secured or unsecured, and often have
high interest rates. Interest rates on these loans may be fixed or variable, and vary greatly
based on the lender and your credit history.

04 Mortgages

Mortgage loans are secured and backed by your home and are the only debt that I’m okay
with you having.

With these loans, you agree to pay it back in installments, for example, biweekly or monthly,
over a specific time. If you cannot pay your mortgage, your lender can foreclose on your
home.

05 Car loans

If you want to buy a vehicle but you aren’t able to afford the full amount, you may decide to
take out a car loan.

Car loans are secured debt meaning your car can be repossessed if you default on payments.

Car loans are also a massive waste of money. If you’re in the market for a car, ditch the debt
and buy a quality used car in cash.
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SCARY STAT

$20,987
$1.43T average auto loan balance

The average auto loan balance of $20,987 and it

is the first time average balances have exceeded
$20,000. Americans owe a record $1.43 trillion.

REFLECTION
QUESTION
Would you consider
buying a used car?
Why or why not?

Answer these 3 questions honestly:

1. Why do you want financial freedom? Is it so you can travel

the world?
2. Is it to relieve financial stress?
3. Is it so you can break generational poverty in your family?

ACTIVATION
TASK
Determine why you
want to get out of
debt.
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HOW TO GET OUT OF DEBT

I’ll be honest with you: if the average salary in America is $54k and most families carry a debt
of about $92k, the only way to get out of debt is to spend less than you earn.

That’s right: live below your means. Take that temporary discomfort and trade it in for financial
freedom.

How to create a zero-based budget

Creating a zero-based budget means when your income

minus your expenses equals zero.

For example, if you make $3,000 a month, anything you give,

save or spend must add up to $3,000. If it doesn’t, you need
$3,000
to assign that dollar to one of the categories in your budget.

Track your spending throughout the month. Every amount $3,000

that comes in must have a purpose, a job, and a goal.

No more mindless spending.

HOW TO ACHIEVE A ZERO BASED BUDGET:

01
List your monthly income. Try using a free budgeting app like
Everydollar, for example.

02
List your expenses. Make a list of everything you spend money on
during the month. These expenses must include giving, savings,
utilities, food, grocery, and gas.

03
Subtract your income from your expenses to equal zero. By
subtracting all the expenses from your income, it should equal
zero. That’s the goal.
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ACTIVATION
TASK
Make a detailed
list of your current
monthly expenses.

How to live below your means

Living below your means is a critical financial move that can help you to:

Have extra money to invest or save by spending less than you earn.

If you have credit card debt, the process will free up more of your money so you can
throw it at your debt.
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I know this isn’t always easy, so here are some practical ways to live below your means:

01 USE CASH. WHEN YOU RUN OUT, STOP SPENDING.

You are less likely to overspend when you use cash instead of credit. If you have no
cash, you simply can’t keep spending. This forces you to live within your means and
stick to a budget.

02 SAVE FOR BIG PURCHASES. DITCH THE PAYMENT PLANS.

Saving up for big purchases is a great way to live below your means. When you pay
cash, you know exactly how much money you have to spend, and you are not saddled
with debt.

Payment plans can be tempting, but they often end up costing you more in the long
run. Interest charges and late fees can add up quickly, so it is always best to save up
for purchases ahead of time.

03 GROW YOUR EMERGENCY FUND.

Living below your means helps you to save and weather financial emergencies. For
example, you can pay for unexpected expenses like ER visits or car repairs.

Ways to get out of credit card debt step-by-step

There are a few different methods to get out of credit card

debt. My preferred method is the Debt Snowball Method.

The debt snowball method is when you pay off your debts
from smallest to largest regardless of the interest rate.

STEP 1: List your debts from smallest to largest regardless of

interest rate.

STEP 2: Make minimum payments on all your debts except the

smallest.

STEP 3: Pay as much as possible on your smallest debt.

STEP 4: Repeat until each debt is paid in full.

Snowball! See?
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Here is an alternative to the Debt Snowball method. I can’t say I’ve tried it, but I will say that
there is more than one way to pay off your debts, so do what works best for you!

01 WHEN YOU CAN, DOUBLE THE MINIMUM PAYMENT

This is just because you want to pay off your balance faster, it’s because it’ll save you money
on interest.

You owe $2,000 on a credit card with a 20% APR and a $40 monthly minimum payment. If
you paid $80 each month, you would save $1,727 in interest and get out of debt more than 6
years faster.

$2,000 balance
20% APR
$80
$40 minimimum payment save $1,727 and get out
of debt 6 years earlier

EXTRA MONEY IN YOUR MONTHLY BUDGET? PUT IT TOWARDS YOUR

02 CREDIT CARD (INSTEAD OF CONCERT TICKETS!)

What if you owe $5,000 on a credit card with an 18% APR

and a minimum payment of $100?

You’d pay $4,311 in interest if you paid the minimum. But what
if you paid $125 each month instead? You could save $1,618
in interest charges and almost three years of payments.

Now, imagine you manage to find an extra $50 in your

monthly budget!? Then, you would save $2,328 in interest
and pay your debt off four years faster.

Every little bit helps. $50

03 DIVIDE YOUR MONTHLY PAYMENT INTO 2 AND PAY TWICE IN A MONTH

This may seem counter-intuitive, but hear me out. It’s not about whether you carry a balance
over from one month to the next. It’s about your daily average balance.

So if you make one payment on the 10th and another on the 25th, you’ll have a lower average
daily balance and accrue interest on a lower number than if you made only one payment per
month. AKA: savings!
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SCARY STAT

9.58%
of disposable income spent on debt repayment

Americans spend approximately 9.58% of their disposable income on

debt repayment according to the Federal Bank of St. Louis.

DAVE RAMSEY’S 7 BABY STEPS

01 Save $1,000 starter, emergency fund

Start by putting away $1,000 for an emergency. Your emergency fund
should be in a checking account separate from your regular account. These
savings are “for the unexpected events in life that you don’t plan for,” as my
boy Dave Ramsey says. When you save and place that money in a separate
account, you will be ready for that expense when the time comes.

02 Pay your debt with the Debt Snowball Method

List debts from smallest to largest and attack from the smallest debt first by
paying off as much of it as possible, as you make minimum payments on the
rest. Dave also says to not pay attention to the interest rates unless there are
two debts with similar payoff amounts. Only then can you pay off the higher
interest rate first.

Once the smallest debt is paid off, use the minimum payment amount for
that debt plus any extra money you have to pay off the second largest.
Continue until you’re completely debt free! When you pay off a single debt, it
is better than partially paying off several debts.

03 Save a fully funded emergency fund

Start by saving 3-6 months of expenses for emergencies. Begin by asking
yourself what it would take to live for three to six months if you lost your
income. You never know what the future will bring, so it is always a good
idea to be prepared for bad luck.
THE ULTIMATE GUIDE TO DEBT PAYOFF 16

04 Save 15% for retirement

Fifteen percent of the household income should be invested into Roth IRAs
and pre-tax retirement funds. Begin by investing more in your company’s
401(k) plan so that you will receive the full employer match. Proceed to
invest the rest into Roth IRAs by investing one for yourself and one for your
spouse if you’re married. Dave further advises that you spread the money
across four types of mutual funds: growth, aggressive growth, growth and
income, and international.

05 Save for kids’ college fund

Dave advises that if you’re saving for college, you should use Educational
Savings Accounts (ESAs) and 529 tax-advantaged savings plans, known as
qualified tuition plans.

Don’t use insurance, savings bonds, or prepaid tuition. He adds that you
should pay cash and avoid college loans as much as possible.

06 Pay off home early

Put all the extra funds based on creating a solid budget for your mortgage
and get it paid off as soon as possible. That will ensure that you pay less
interest and less interest which means you will have more money to give
to worthy causes and to fulfill your dreams. Dave advises that if you have a
30-year mortgage, you should consider refinancing to a 15-year, fixed-rate
mortgage.

07 Become wealthy and give generously

At this point, you don’t have debts, not even a mortgage. With no debt, you
can truly live and give to causes that you can be passionate about in your
community and in the world.

SCARY STAT

$11.67T
total debt of American households

American households in total hold $11.67 trillion in debt,

according to the Federal Reserve Bank of New York.
THE ULTIMATE GUIDE TO DEBT PAYOFF 17

How to build wealth

through investing
When it comes to building wealth, investing is my #1 strategy for making my money work for
me.

Think about it: What earns you money over time without you having to do hardly anything?
Not much, but investing done right will.

Basically, investing is spending money with the expectation of making a profit over time. You
can invest in a lot of different ways: stocks, funds, cryptocurrency—I can go on and on. But
investing can be confusing, and there’s a lot of bad investing advice out there. So, I’m going to
break down the basics of investing, so you can start investing your money wisely and see the
growth.

DISCLAIMER: I’m going to keep it real with you. Investing is never a guarantee. In fact,
there’s risk involved. BUT, if you do it wisely and remember to never invest money that
you can’t afford to lose, then you’ll be a much richer (and happier) investor.

HOW TO MAKE MONEY IN STOCKS?

You make money by buying stocks, selling them at a higher price than what you paid for and
pocketing the difference. There are quite a few methods to do that. Let’s take a look!

What are single stocks?

The first method is buying single stocks. Investing in single stocks is basically
purchasing stock from an individual company or companies.

If the value of stock increases you can sell it for profit. But, beware: Investing
in single stocks is by far the riskiest investment strategy. Why? Because you’re
putting a lot of eggs in one basket.

Diversification is essential to protecting your investments.

THE ULTIMATE GUIDE TO DEBT PAYOFF 18

What are dividends?

Dividends are another way to make money using stocks. It’s basically a payout
from the company for owning their stock. Not everyone does this, however,
McDonald’s is famous for paying dividends. Every year, if you own McDonald’s
stock, they pay you a percentage of profits according to how many stocks you
own: More stock = more dividends. It’s a nice perk.

What is compound interest?

Compound interest is one of my favorite ways to make money using stocks. In

fact, I use it for my retirement strategy.

Basically, certain investment accounts, like 401Ks, IRAs, etc., allow you to
invest in the stock market up to a certain amount each year. If you leave
your initial investment (also called principal) plus the interest you earn alone,
it will continue to multiply over time, giving you 5x, 8x, even 10x+ on your
investment.

To show you the power of compound interest, check out this example:

Let’s say you turn 30 years old this year and you want to retire at 67 years old.
If you contribute $200 per month for 37 years, you’d have contributed $88,800,
but your retirement will be worth almost $1.5 million!

WHAT ARE INDEX FUNDS?

While indexes simply track the top companies in the U.S.; index funds let you invest in them.

For example, if you invested in an S&P 500 index fund, you’d be using your money to buy
small shares of all 500 companies that it represents.

The main advantages of investing in index funds

Diversified investments (which lower your chances of losing money)

Investing in top companies (#win)

Expect the same profits as you see on the index reports

However, there is a downside to it:

Expect the same profits as you see on the index reports

THE ULTIMATE GUIDE TO DEBT PAYOFF 19

Index funds are, however, a step up from investing in single stocks because there’s less risk.

However, if you really want to maximize your profit, I always suggest investing in mutual funds.

WHAT ARE MUTUAL FUNDS?

With mutual funds, investors combine their money to invest. Each mutual fund has a fund
manager who oversees how the money is invested into a variety of stocks.

Main advantages of mutual funds

Diversified investment

Managed by an investment professional or a team of professionals

Opportunity to beat the market

I don’t really have any downsides to investing in mutual funds. They’re what I invest in,
personally, and have made me a lot of money from.

However, here are some downsides that critics have found with mutual funds:

Potential for unethical management

Less control over tax strategy

Not ideal for day trading or swing trading

WHAT IS A CRYPTOCURRENCY OR NON-FUNGIBLE TOKENS (NFTS)?

There’s been a ton of hype around cryptocurrency, like Bitcoin,
Ethereum, dogecoin, etc. If you’re not sure what they are,
cryptocurrencies are digital assets used as investments and
actual currency.

You can invest in cryptocurrency by purchasing coins or tokens

and holding onto them while the value increases. Later, you can
sell them for profit, much like stocks. You can also stake your
crypto, which is a lot like depositing money into a bank and
gaining interest on it.
In its simplest terms, NFTs are unique pieces of digital collectibles
or art that you can buy, sell and collect. And they’re so new to
most investors, no one knows if this is the new Bitcoin or the new
Beanie Baby, if you catch my drift.
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Why I don’t recommend investing in crypto or NFTs as your primary

investing strategy

Cryptocurrency is unstable. In November 2021, Bitcoin hit an all-

time high of $68,990 and fell to less than $48,000 in a matter of
weeks.

As for NFTs, a lot of people are questioning the long-term utility

of most of these new releases. DAUs (decentralized autonomous
organizations), private Discords and free crypto sound nice, but
can NFT creators actually deliver? Only time will tell.

If you want to invest in crypto and NFTs, make sure you’re out
of debt, with 3-6 months of your emergency fund saved, AND
you’re saving 15 percent of your income in retirement. After all of
that, if you have cash to spare, by all means, shoot your shot at
crypto investing. Just accept that you might lose some money.

ACTIVATION
TASK
What is your current
retirement plan?
Write it down.
THE ULTIMATE GUIDE TO DEBT PAYOFF 21

WHAT IS THE BEST WAY TO INVEST FOR YOUR RETIREMENT?

Here’s my plan for investing for retirement: Once you’re out of
consumer debt and have a 3-6 month emergency fund, you
should invest 15 percent of your income in solid mutual funds
in a retirement account and a Health Savings Account (if you
qualify). These accounts grow with compound interest.

That’s how someone who only invested $88,800 over 37

years can have a portfolio worth $1.5 million by 67 years old.

SCARY STAT

$92,727
$54,000 average consumer debt

According to the BUREAU OF LABOR

STATISTICS, the average salary in America is
about $54,000. However, the average consumer
debt sits at $92,727.

INVESTING IN YOUR RETIREMENT IS NON-NEGOTIABLE.

So, how do you know which retirement account to pick?

First, check with your job to find out what retirement plan options they offer. The most
common retirement plans are 401K and IRA, and these come in Traditional and Roth options.
Traditional means it’s your typical 401(k) or IRA—nothing special. Roth means that you don’t
get taxed until you withdraw your money, which is a HUGE advantage.

Here’s the catch, though: If your company offers a match—whether it’s Traditional or Roth—
always take the match. It’s free money! My friend, Dave Ramsey has a saying that I stand by:
Match beats Roth, Roth beats Traditional.

NOTE: Most retirement accounts don’t let you withdraw money until you’re 59 ½ years
old. So, you’re investing for the long-term, but your future self will thank you.
THE ULTIMATE GUIDE TO DEBT PAYOFF 22

WHAT IS THE DIFFERENCE BETWEEN A 401(K) AND AN IRA?

401(K) retirement account

Max annual contribution of $20,500 if you’re under 50

years old.

Allows you to invest your money into mutual funds.

Traditional 401(k) doesn’t require you to pay taxes

on that money until you withdraw in retirement. (This
lowers your current taxable income, so you pay less to
$20,500
Uncle Sam.) max annual
contribution under
Roth 401(K) allows you to pay taxes now, but withdraw 50 years old
money tax-free in retirement. This is a better option, because
taxes on a $200 investment are a lot lower than a $2,000
withdrawal.

What is an IRA?

Max annual contribution of $6,000 under 50 years

old.

You can do this without an employer.

Traditional IRA doesn’t require you to pay taxes on $6,000

that money until you withdraw in retirement.
max annual
contribution under
Roth IRA allows you to pay taxes now, but withdraw money 50 years old
tax-free in retirement. (A better option.)

WHAT IS AN HSA?
Don’t sleep on this one, you guys. It’s a tax-advantaged savings account that acts as an extra
emergency fund for medical expenses. And if you’ve been hospitalized recently, you know how
expensive medical bills are.

HSAs are only for individuals and families with a high-deductible insurance plan. Self-
employed people can qualify, too, but that HDHP is key.
THE ULTIMATE GUIDE TO DEBT PAYOFF 23

The max contribution for an HSA in 2022 is $3,650 for

individuals and $7,300 for families.

You can make contributions to your HSA directly

from your paycheck each month. You can spend
that money immediately with no penalties, or you
can convert it to an investment account, so it grows
$3,650
interest.

If you invest it, once you turn 65, you can withdraw money
for anything you want, without paying taxes. However, if you
make a withdrawal prior to 65, you’ll face penalties. It’s a
good option for young, healthy individuals, who don’t spend
much on medical bills.
$7,300
Investing in your HSA is not part of your initial 15%
max annual
investment toward retirement. This is an additional option
contribution for
if you want to be intentional about saving for medical
individuals and families
expenses.
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Financial Reflection
Questions

01
What aspect of my
finances do I avoid?

02
Do I have a healthy
relationship with
money?
THE ULTIMATE GUIDE TO DEBT PAYOFF 25

03
What are my long-term
money goals?

04
Which financial decision
am I most proud of?

05
When’s the last time I
asked myself: “Do I need
to make this purchase?”
THE ULTIMATE GUIDE TO DEBT PAYOFF 26

06
What’s one change I
can make today to set
myself up for a better
financial future?

07
What limiting beliefs
about money do I need
to unlearn to reach
financial freedom?
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What the Bible says

about managing
finances
“Whoever loves money never has enough; whoever loves wealth is never
satisfied with their income. This too is meaningless.”
ECCLESIASTES 5:10
THE ULTIMATE GUIDE TO DEBT PAYOFF 28

“But remember the LORD your God, for it is he who gives you the ability
to produce wealth, and so confirms his covenant, which he swore to your
ancestors, as it is today.”
DEUTERONOMY 8:18

“Whoever is greedy for unjust gain troubles his own household, but he
who hates bribes will live.”
PROVERBS 15:27
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“No one can serve two masters, for either he will hate the one and love
the other, or he will be devoted to the one and despise the other. You
cannot serve God and money.”
MATTHEW 6:24

“A wise man thinks ahead; a fool doesn’t, and even brags about it!”
PROVERBS 13:16
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“If anyone is poor among your fellow Israelites in any of the towns of
the land the LORD your God is giving you, do not be hardhearted or
tightfited toward them.”
DEUTERONOMY 15:7

“And it is a good thing to receive wealth from God and the good health
to enjoy it. To enjoy your work and accept your lot in life—this is indeed
a gift from God.”
ECCLESIASTES 5:19
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“Instruct those who are rich in this present world not to be conceited
or to fix their hope on the uncertainty of riches, but on God, who richly
supplies us with all things to enjoy. Instruct them to do good, to be
rich in good works, to be generous and ready to share, storing up for
themselves the treasure of a good foundation for the future, so that they
may take hold of that which is life indeed.”
1 TIMOTHY 6:17-19

“If that is how God clothes the grass of the field, which is here today, and
tomorrow is thrown into the fire, how much more will he clothe you—you
of little faith!”
LUKE 12:28
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“In all things I have shown you that by working hard in this way we
must help the weak and remember the words of the Lord Jesus, how he
himself said, ‘It is more blessed to give than to receive.’”
ACT 20:25
THE ULTIMATE GUIDE TO DEBT PAYOFF 33

Budget Workbook &

Expense List
On the next 12 of pages, you have a full calendar year where you can write out your expense
and plan your budget. Please see some instructions outlined on the graphic below. The goal
of this budget workbook is to help you start setting better financial goals so that you can
discover, fix and reach those goals easier than ever before!

Month

Category

Write down your

total expenses for
this category.

Write down your

estimate for this
category.

Count your total

expenses.
THE ULTIMATE GUIDE TO DEBT PAYOFF 34

Salary $
JANUARY
INCOME

Passive Income / Investments $

Side Hustle(s) $
Other $
TOTAL INCOME $

Mortgage/Rent $
Food/Groceries $ TOTAL FIXED
Home/Renter’s Insurance $ EXPENSES
Auto Insurance $
Home Supplies $

$
FIXED EXPENSES

Car Payment $
Electricity $
Gas $
Cell Phone $
Child Care $
Water/Sewer $
Internet/Broadband $
Cable/Streaming Services $
Tithes/Giving $
TOTAL FIXED EXPENSES $

Miscellaneous $

Socialization/Entertainment $ TOTAL PERSONAL

PERSONAL
EXPENSES

EXPENSES
Clothing $

Travel $

Gym

Eating Out
$

$
$
TOTAL PERSONAL EXPENSES $

#1 $
DEBT EXPENSES

#2 $ TOTAL DEBT
#3 $ EXPENSES
#4 $

$
#5 $
#6 $
#7 $
TOTAL PERSONAL EXPENSES $

Emergency Fund $
Retirement $ TOTAL SAVINGS
SAVINGS

Sinking Fund #1 $
Sinking Fund #2
Sinking Fund #3
$
$
$
TOTAL SAVINGS $

FINAL TOTAL $
THE ULTIMATE GUIDE TO DEBT PAYOFF 35

Salary $
FEBRUARY
INCOME

Passive Income / Investments $

Side Hustle(s) $
Other $
TOTAL INCOME $

Mortgage/Rent $
Food/Groceries $ TOTAL FIXED
Home/Renter’s Insurance $ EXPENSES
Auto Insurance $
Home Supplies $

$
FIXED EXPENSES

Car Payment $
Electricity $
Gas $
Cell Phone $
Child Care $
Water/Sewer $
Internet/Broadband $
Cable/Streaming Services $
Tithes/Giving $
TOTAL FIXED EXPENSES $

Miscellaneous $

Socialization/Entertainment $ TOTAL PERSONAL

PERSONAL
EXPENSES

EXPENSES
Clothing $

Travel $

Gym

Eating Out
$

$
$
TOTAL PERSONAL EXPENSES $

#1 $
DEBT EXPENSES

#2 $ TOTAL DEBT
#3 $ EXPENSES
#4 $

$
#5 $
#6 $
#7 $
TOTAL PERSONAL EXPENSES $

Emergency Fund $
Retirement $ TOTAL SAVINGS
SAVINGS

Sinking Fund #1 $
Sinking Fund #2
Sinking Fund #3
$
$
$
TOTAL SAVINGS $

FINAL TOTAL $
THE ULTIMATE GUIDE TO DEBT PAYOFF 36

Salary $
MARCH
INCOME

Passive Income / Investments $

Side Hustle(s) $
Other $
TOTAL INCOME $

Mortgage/Rent $
Food/Groceries $ TOTAL FIXED
Home/Renter’s Insurance $ EXPENSES
Auto Insurance $
Home Supplies $

$
FIXED EXPENSES

Car Payment $
Electricity $
Gas $
Cell Phone $
Child Care $
Water/Sewer $
Internet/Broadband $
Cable/Streaming Services $
Tithes/Giving $
TOTAL FIXED EXPENSES $

Miscellaneous $

Socialization/Entertainment $ TOTAL PERSONAL

PERSONAL
EXPENSES

EXPENSES
Clothing $

Travel $

Gym

Eating Out
$

$
$
TOTAL PERSONAL EXPENSES $

#1 $
DEBT EXPENSES

#2 $ TOTAL DEBT
#3 $ EXPENSES
#4 $

$
#5 $
#6 $
#7 $
TOTAL PERSONAL EXPENSES $

Emergency Fund $
Retirement $ TOTAL SAVINGS
SAVINGS

Sinking Fund #1 $
Sinking Fund #2
Sinking Fund #3
$
$
$
TOTAL SAVINGS $

FINAL TOTAL $
THE ULTIMATE GUIDE TO DEBT PAYOFF 37

Salary $
APRIL
INCOME

Passive Income / Investments $

Side Hustle(s) $
Other $
TOTAL INCOME $

Mortgage/Rent $
Food/Groceries $ TOTAL FIXED
Home/Renter’s Insurance $ EXPENSES
Auto Insurance $
Home Supplies $

$
FIXED EXPENSES

Car Payment $
Electricity $
Gas $
Cell Phone $
Child Care $
Water/Sewer $
Internet/Broadband $
Cable/Streaming Services $
Tithes/Giving $
TOTAL FIXED EXPENSES $

Miscellaneous $

Socialization/Entertainment $ TOTAL PERSONAL

PERSONAL
EXPENSES

EXPENSES
Clothing $

Travel $

Gym

Eating Out
$

$
$
TOTAL PERSONAL EXPENSES $

#1 $
DEBT EXPENSES

#2 $ TOTAL DEBT
#3 $ EXPENSES
#4 $

$
#5 $
#6 $
#7 $
TOTAL PERSONAL EXPENSES $

Emergency Fund $
Retirement $ TOTAL SAVINGS
SAVINGS

Sinking Fund #1 $
Sinking Fund #2
Sinking Fund #3
$
$
$
TOTAL SAVINGS $

FINAL TOTAL $
THE ULTIMATE GUIDE TO DEBT PAYOFF 38

Salary $
MAY
INCOME

Passive Income / Investments $

Side Hustle(s) $
Other $
TOTAL INCOME $

Mortgage/Rent $
Food/Groceries $ TOTAL FIXED
Home/Renter’s Insurance $ EXPENSES
Auto Insurance $
Home Supplies $

$
FIXED EXPENSES

Car Payment $
Electricity $
Gas $
Cell Phone $
Child Care $
Water/Sewer $
Internet/Broadband $
Cable/Streaming Services $
Tithes/Giving $
TOTAL FIXED EXPENSES $

Miscellaneous $

Socialization/Entertainment $ TOTAL PERSONAL

PERSONAL
EXPENSES

EXPENSES
Clothing $

Travel $

Gym

Eating Out
$

$
$
TOTAL PERSONAL EXPENSES $

#1 $
DEBT EXPENSES

#2 $ TOTAL DEBT
#3 $ EXPENSES
#4 $

$
#5 $
#6 $
#7 $
TOTAL PERSONAL EXPENSES $

Emergency Fund $
Retirement $ TOTAL SAVINGS
SAVINGS

Sinking Fund #1 $
Sinking Fund #2
Sinking Fund #3
$
$
$
TOTAL SAVINGS $

FINAL TOTAL $
THE ULTIMATE GUIDE TO DEBT PAYOFF 39

Salary $
JUNE
INCOME

Passive Income / Investments $

Side Hustle(s) $
Other $
TOTAL INCOME $

Mortgage/Rent $
Food/Groceries $ TOTAL FIXED
Home/Renter’s Insurance $ EXPENSES
Auto Insurance $
Home Supplies $

$
FIXED EXPENSES

Car Payment $
Electricity $
Gas $
Cell Phone $
Child Care $
Water/Sewer $
Internet/Broadband $
Cable/Streaming Services $
Tithes/Giving $
TOTAL FIXED EXPENSES $

Miscellaneous $

Socialization/Entertainment $ TOTAL PERSONAL

PERSONAL
EXPENSES

EXPENSES
Clothing $

Travel $

Gym

Eating Out
$

$
$
TOTAL PERSONAL EXPENSES $

#1 $
DEBT EXPENSES

#2 $ TOTAL DEBT
#3 $ EXPENSES
#4 $

$
#5 $
#6 $
#7 $
TOTAL PERSONAL EXPENSES $

Emergency Fund $
Retirement $ TOTAL SAVINGS
SAVINGS

Sinking Fund #1 $
Sinking Fund #2
Sinking Fund #3
$
$
$
TOTAL SAVINGS $

FINAL TOTAL $
THE ULTIMATE GUIDE TO DEBT PAYOFF 40

Salary $
JULY
INCOME

Passive Income / Investments $

Side Hustle(s) $
Other $
TOTAL INCOME $

Mortgage/Rent $
Food/Groceries $ TOTAL FIXED
Home/Renter’s Insurance $ EXPENSES
Auto Insurance $
Home Supplies $

$
FIXED EXPENSES

Car Payment $
Electricity $
Gas $
Cell Phone $
Child Care $
Water/Sewer $
Internet/Broadband $
Cable/Streaming Services $
Tithes/Giving $
TOTAL FIXED EXPENSES $

Miscellaneous $

Socialization/Entertainment $ TOTAL PERSONAL

PERSONAL
EXPENSES

EXPENSES
Clothing $

Travel $

Gym

Eating Out
$

$
$
TOTAL PERSONAL EXPENSES $

#1 $
DEBT EXPENSES

#2 $ TOTAL DEBT
#3 $ EXPENSES
#4 $

$
#5 $
#6 $
#7 $
TOTAL PERSONAL EXPENSES $

Emergency Fund $
Retirement $ TOTAL SAVINGS
SAVINGS

Sinking Fund #1 $
Sinking Fund #2
Sinking Fund #3
$
$
$
TOTAL SAVINGS $

FINAL TOTAL $
THE ULTIMATE GUIDE TO DEBT PAYOFF 41

Salary $
AUGUST
INCOME

Passive Income / Investments $

Side Hustle(s) $
Other $
TOTAL INCOME $

Mortgage/Rent $
Food/Groceries $ TOTAL FIXED
Home/Renter’s Insurance $ EXPENSES
Auto Insurance $
Home Supplies $

$
FIXED EXPENSES

Car Payment $
Electricity $
Gas $
Cell Phone $
Child Care $
Water/Sewer $
Internet/Broadband $
Cable/Streaming Services $
Tithes/Giving $
TOTAL FIXED EXPENSES $

Miscellaneous $

Socialization/Entertainment $ TOTAL PERSONAL

PERSONAL
EXPENSES

EXPENSES
Clothing $

Travel $

Gym

Eating Out
$

$
$
TOTAL PERSONAL EXPENSES $

#1 $
DEBT EXPENSES

#2 $ TOTAL DEBT
#3 $ EXPENSES
#4 $

$
#5 $
#6 $
#7 $
TOTAL PERSONAL EXPENSES $

Emergency Fund $
Retirement $ TOTAL SAVINGS
SAVINGS

Sinking Fund #1 $
Sinking Fund #2
Sinking Fund #3
$
$
$
TOTAL SAVINGS $

FINAL TOTAL $
THE ULTIMATE GUIDE TO DEBT PAYOFF 42

Salary $
SEPTEMBER
INCOME

Passive Income / Investments $

Side Hustle(s) $
Other $
TOTAL INCOME $

Mortgage/Rent $
Food/Groceries $ TOTAL FIXED
Home/Renter’s Insurance $ EXPENSES
Auto Insurance $
Home Supplies $

$
FIXED EXPENSES

Car Payment $
Electricity $
Gas $
Cell Phone $
Child Care $
Water/Sewer $
Internet/Broadband $
Cable/Streaming Services $
Tithes/Giving $
TOTAL FIXED EXPENSES $

Miscellaneous $

Socialization/Entertainment $ TOTAL PERSONAL

PERSONAL
EXPENSES

EXPENSES
Clothing $

Travel $

Gym

Eating Out
$

$
$
TOTAL PERSONAL EXPENSES $

#1 $
DEBT EXPENSES

#2 $ TOTAL DEBT
#3 $ EXPENSES
#4 $

$
#5 $
#6 $
#7 $
TOTAL PERSONAL EXPENSES $

Emergency Fund $
Retirement $ TOTAL SAVINGS
SAVINGS

Sinking Fund #1 $
Sinking Fund #2
Sinking Fund #3
$
$
$
TOTAL SAVINGS $

FINAL TOTAL $
THE ULTIMATE GUIDE TO DEBT PAYOFF 43

Salary $
OCTOBER
INCOME

Passive Income / Investments $

Side Hustle(s) $
Other $
TOTAL INCOME $

Mortgage/Rent $
Food/Groceries $ TOTAL FIXED
Home/Renter’s Insurance $ EXPENSES
Auto Insurance $
Home Supplies $

$
FIXED EXPENSES

Car Payment $
Electricity $
Gas $
Cell Phone $
Child Care $
Water/Sewer $
Internet/Broadband $
Cable/Streaming Services $
Tithes/Giving $
TOTAL FIXED EXPENSES $

Miscellaneous $

Socialization/Entertainment $ TOTAL PERSONAL

PERSONAL
EXPENSES

EXPENSES
Clothing $

Travel $

Gym

Eating Out
$

$
$
TOTAL PERSONAL EXPENSES $

#1 $
DEBT EXPENSES

#2 $ TOTAL DEBT
#3 $ EXPENSES
#4 $

$
#5 $
#6 $
#7 $
TOTAL PERSONAL EXPENSES $

Emergency Fund $
Retirement $ TOTAL SAVINGS
SAVINGS

Sinking Fund #1 $
Sinking Fund #2
Sinking Fund #3
$
$
$
TOTAL SAVINGS $

FINAL TOTAL $
THE ULTIMATE GUIDE TO DEBT PAYOFF 44

Salary $
NOVEMBER
INCOME

Passive Income / Investments $

Side Hustle(s) $
Other $
TOTAL INCOME $

Mortgage/Rent $
Food/Groceries $ TOTAL FIXED
Home/Renter’s Insurance $ EXPENSES
Auto Insurance $
Home Supplies $

$
FIXED EXPENSES

Car Payment $
Electricity $
Gas $
Cell Phone $
Child Care $
Water/Sewer $
Internet/Broadband $
Cable/Streaming Services $
Tithes/Giving $
TOTAL FIXED EXPENSES $

Miscellaneous $

Socialization/Entertainment $ TOTAL PERSONAL

PERSONAL
EXPENSES

EXPENSES
Clothing $

Travel $

Gym

Eating Out
$

$
$
TOTAL PERSONAL EXPENSES $

#1 $
DEBT EXPENSES

#2 $ TOTAL DEBT
#3 $ EXPENSES
#4 $

$
#5 $
#6 $
#7 $
TOTAL PERSONAL EXPENSES $

Emergency Fund $
Retirement $ TOTAL SAVINGS
SAVINGS

Sinking Fund #1 $
Sinking Fund #2
Sinking Fund #3
$
$
$
TOTAL SAVINGS $

FINAL TOTAL $
THE ULTIMATE GUIDE TO DEBT PAYOFF 45

Salary $
DECEMBER
INCOME

Passive Income / Investments $

Side Hustle(s) $
Other $
TOTAL INCOME $

Mortgage/Rent $
Food/Groceries $ TOTAL FIXED
Home/Renter’s Insurance $ EXPENSES
Auto Insurance $
Home Supplies $

$
FIXED EXPENSES

Car Payment $
Electricity $
Gas $
Cell Phone $
Child Care $
Water/Sewer $
Internet/Broadband $
Cable/Streaming Services $
Tithes/Giving $
TOTAL FIXED EXPENSES $

Miscellaneous $

Socialization/Entertainment $ TOTAL PERSONAL

PERSONAL
EXPENSES

EXPENSES
Clothing $

Travel $

Gym

Eating Out
$

$
$
TOTAL PERSONAL EXPENSES $

#1 $
DEBT EXPENSES

#2 $ TOTAL DEBT
#3 $ EXPENSES
#4 $

$
#5 $
#6 $
#7 $
TOTAL PERSONAL EXPENSES $

Emergency Fund $
Retirement $ TOTAL SAVINGS
SAVINGS

Sinking Fund #1 $
Sinking Fund #2
Sinking Fund #3
$
$
$
TOTAL SAVINGS $

FINAL TOTAL $
THE ULTIMATE GUIDE TO DEBT PAYOFF 46

Notes
THE ULTIMATE GUIDE TO DEBT PAYOFF 47
THE ULTIMATE GUIDE TO DEBT PAYOFF 48
THE ULTIMATE GUIDE TO DEBT PAYOFF 49
THE ULTIMATE GUIDE TO DEBT PAYOFF 50