If you’ve never heard Dave Ramsey say something like “you’re going to be living on rice and beans until you crawl out from under this debt,” then you probably haven’t listened to his podcast very long or read any of his books. It’s one of his standard comebacks.
Of course, he doesn’t mean you will literally be eating only rice and beans, but he is serious about you cutting out all the extra fluff until you are debt-free. Why the urgency and hurry?
Debt is a heavy load to carry around, but you don’t always feel it until you’ve gotten rid of it. It’s like those people on The Biggest Loser that have lost 80lbs and they make them put on the 80lb bodysuit and run around in it. They are always amazed at how hard it is to function with that bodysuit on and that they had been carrying that much extra weight around for years.
Lose the Debt Load
The same goes with losing the debt. Not only is it a load off your mind, but it makes it so much easier to reach other goals in your financial life.
Imagine taking all of the money you pay each month to credit cards, student loans, car payments, and other loans, and using it towards your next goal. You will get there so quickly you will be amazed. And when you look back, you will wonder how you ever survived with all of those debt payments each month. But, that’s all you are doing: surviving.
So, back to the question. How long can you do rice and beans? 4 weeks? 6 months? Two years? It all depends on how badly you want to get to your next goal. How motivated you are.
We lived on rice and beans for a couple of years during the recession, back in 2008-09. Job loss and extremely low paying jobs really made it tough to get anywhere during that time, so we were forced to live a rice and beans existence until the economy opened up again. My motivation during that time was to feed the family and keep a roof over our head. And not freeze in the winter! It just proved to me that it was possible to live that way, you only needed the motivation.
Find Your Motivation
But, you may have a great income, so your motivation would have to come from another source. Maybe you are getting too close to retirement with too little in the savings department. Your motivation might be that you don’t want to live on tuna and crackers during your retirement years. Or, you might want to be debt-free with a nice savings built up so you can quit your 9-5 job and start your own free-lance work.
A rice and beans budget gets really old after a few months, so you have to find ways to keep your motivation high. This is best done by setting very small goals that are easily attainable and rewarding yourself for reaching each goal, one at a time. Make the size of the reward match the size of the accomplishment.
At the beginning, you may have to use small monetary rewards, like Chinese take-out for dinner if you make it to the end of the month and don’t go over your monthly food budget. Or, you might find free ways to celebrate, like a morning off to do whatever you please. Soon you will find that the accomplishment itself is reward enough. It becomes like an adrenaline rush to cross another debt off the list, or to reach another mile marker on your fridge graph.
Set the Right Expectations
I believe that setting realistic expectations from the beginning is super important. Start with a real plan, knowing how long it will take you to reach each goal, what the sacrifices are going to be, and what the payoff is. You have to know why it is worth it to YOU to exchange steak for hamburger casserole. Post your reason at the top of the goal chart in great big font. Set up your mile markers and rewards and get going.
There’s not much worth doing in life that doesn’t take some sacrifice and ambition. What are you willing to eat rice and beans for, and how long will your motivation hold out?
What’s Your Goal?
I’m sure you already have plenty of goals you want to reach, but if not, here are some goal ideas to get your brainstorming session going.
- Pay cash for a newer car
- Buy some sports or outdoor equipment
- Save up for new furniture
- Become debt-free
- Put 20% down on a house or pay off the one you own
- Fully fund the emergency fund, college fund, or retirement fund
- Pay cash for a great vacation
- Save up for new shoes, or a whole new wardrobe
- Be financially set to switch jobs or start your own business
Some goals are pretty common to lots of people, but others are very personal to you. Don’t worry about what other people are doing. Live your own dreams and make your own goals.
Inspire others and tell us in the comments what your goals you are willing to live a “rice & beans” lifestyle to reach.