Let’s make paying off debt a little more fun and a little less of a slog. We deep dive into the psychology of debt repayment and offer some of the more enjoyable ways to stay motivated and on top of your debt payoff journey. We’re moving beyond standard budgets and interest rates to discuss the power of “hacking” your brain, leveraging the principles of behavioral science to stay motivated, celebrate your wins, and finally break free from the burden of debt.
Liz joins this week’s podcast as we talk about:
– The psychological barriers that make paying off debt so challenging
– Why traditional methods like the snowball and avalanche approaches aren’t always enough to keep you motivated
– Gamifying your debt payoff with trackers and custom reward systems
– The power of public accountability and how online communities can be your secret weapon
– Creating a strategic, guilt-free reward system to prevent burnout
– Applying the principles of James Clear’s Atomic Habits to pay off debt
– Shifting your identity from “someone in debt” to “a financially responsible person”
– The importance of celebrating small wins and creating immediate satisfaction in your debt payoff journey
Show References:
- friends on FIRE podcast #107 – Why you should reject Dave Ramsey’s Debt Snowball Method, and what to do instead
- https://tiller.com/debt-snowball-spreadsheet/#debt-snowball-spreadsheet-from-reddit
- Book: Atomic Habits: An Easy and Proven Way to Build Good Habits and Break Bad Ones
- Podcast: The Price of Avocado Toast
- Price of Avocado Toast Coaching