When I first moved to PEI, Canada, I was 23 years old, I had zero debt and zero savings. Sounds wonderful right? The problem was I also had no knowledge related to personal finances or investing. Credit cards were foreign to me, I lived only with cash, and I had never borrowed money from banks or family.

My husband bought a home in 2012, and then I automatically inherited the debt from the house. I had to get financially educated and learn about many financial terms in a short time, in a foreign language. 

I almost had a heart attack when I realized how much debt we had because of our home. Immediately, I mentally prepared myself to pay it off as soon as possible. Now after nine years, we have paid off 85% of our home; if things continue going as planned, our home will be paid off next year!

Most financial "gurus," told us that it would be best to invest our money in stocks, RSSP, or real estate. I think that the best thing you can do with your money is to pay off all your debt, invest in your retirement, and then invest in extra things like real estate or stocks. 

Continue reading to learn what we did to save as much money as possible and pay off our car and mortgage while living a minimalist, zero-waste lifestyle. 

Start a budget

I can not emphasize enough how much a budget can help you understand where your money goes. The idea of a budget was very strange to me at first. The way I first approached it was to assign a job to each dollar we had in our bank account. It initially felt a little bit weird and has taken some time to get used to.

When you implement a budget, even when you have money in your accounts, you need to acknowledge that each and every dollar has a job to do or purpose to accomplish. If you need something new, you need to factor in more money. A budget will also give you insights into what you are spending your money. Since I started a budget, I know where I have to cut down and where I can pay closer attention.

If you want an excellent tool, try You Need A Budget. We tried a few other tools, such as Excel sheets and other apps, but we had no success with them. I like this app because the transactions are added automatically put into categories, and the stats are really comprehensive. 

If you have a budget, make sure you check it often. We set up a monthly reminder to sit down and see where we are with things and where we need to make changes. It is so important to stay on top of finances so they don’t get on top of you!  

Find a better-paid job, raise your rates or take extra gigs.

To make sure you have the extra capital that you can throw on your debt, you also need to increase your income.

Since we decided to pay off our home as soon as possible, I chose to make some sacrifices. I worked two jobs for a year and a half. After that, I worked a part-time job (but with high hourly pay) and took extra gigs on the side. At the same time, I raised my hourly rates to work less and get more income. 

If you are a contractor or freelancer like me and you have experience in a field, raise your rates. You are a specialist, and you know your stuff — the more you believe in your worth the better clients, more appreciative clients you will receive too! If you have the opportunity, search for similar jobs that offer better pay. Trust me, you can find a better job. 

Buy less or have a no-buy year.

Buying less is hard. I find myself browsing sometimes and thinking I could use that thing or another, but I remind myself I do not need anything. All my needs are fulfilled. The peer pressure and keeping up with Jones is intense because we live in a consumerist society. 

Anytime you have the urge to buy something new, consider taking some time to sleep on it, a few weeks or even months perhaps. Consider the pros and cons and whether or not it adds true value to your life. This will help you avoid impulse spending and be mindful of whether or not the item is of real worth, versus your current debts you already have that you could be paying off instead. In time, your priorities will shift and the long-term savings will outweigh your immediate thoughts and desires.

Sell everything you do not need

I have no problem selling everything I do not use, but my husband has a hard time. Whenever I look at something that takes space in my home, I think about the amount of money we spend on it. Sometimes I can feel guilty for getting rid of things, considering the ‘what ifs’ that might come up in the future. I think that’s a normal feeling, but it still doesn't keep me selling it if it didn't serve a purpose for a long time. 

Before selling stuff, double-check to see if you can repurpose it or give it away to family or friends that could find it useful. When an item no longer serves you or your space, just get rid of it. Keeping a clean, and organized space is good for your health.

Here is my process for selling or discarding the things I do not need

1. See if I can repurpose it in another room or outdoor

2. Ask the family and friends if they need it.

3. Ask neighbours if they need it

4. Put it on Kijiji or Facebook Market. If it doesn't sell, lower the price. If it still doesn't sell, collect a few items and have a yard sale later.

5. Consider donating the item for free

Buy multi-purpose items

One of my secret weapons for having plenty of space in my home is to buy multi-purpose items. For instance, I have a mop steamer that works on multiple surfaces and a three-in-one microwave, oven, and air fryer. We also have a pressure cooker that can cook a bunch of meals. Multipurpose items will save you money and space in the long run.

Unsubscribe to emails that sell

Every six months to a year, I go through my emails and check for emails that advertise too aggressively and make me feel inadequate. You should too. Most of the time, the desire to buy more comes from our exposure to advertising. Even if I don’t think it affects me, everything we read and are exposed to does have a lasting impact on our subconscious (and most marketers know that) If we can reduce our exposure to advertising, we are more likely to reduce our consumption. 

Buy quality products

Buying quality products will help you save money in the long term. Sure, some products are expensive, but they are made to last—for instance, shoes. You can buy five pairs of shoes in 3 years or buy one pair that will last ten years. 

You can usually research a product via forums or Reddit. You can also check out the Consumer Report at your local library. For reviews for zero waste products check out my blog. I try to write about the products I am using on regular basis.

Buy less but buy quality. 

Do not renovate unless needed. Don't renovate for the aesthetics. 

I must say that this saved us lots of money. We have an old-school house. Nothing in our house is modern, but everything functions just fine. We have put off many renos, and instead, have decided to either put the money on our mortgage or RRSP. It helps us maintain a minimalistic aesthetic and really only bring things into our home that we truly love. I think financial security far outweighs the desire for a new couch or Pinterest-worthy aesthetic.

See if you can find second-hand first.

There are times when we do need something, and when we do, we make sure we check out the thrift stores. Of course, you can not find everything second-hand, but it is definitely worth trying! 

One of our best recent thrift store findings is a waffle maker. We wanted to make our waffles instead of buying Eggos, which come in plastic and just never seemed as tasty as homemade waffles. The second-hand one we found was in fantastic condition and it’s a good feeling being able to give a second life to something that wasn’t used enough in another’s home.

Cook more at home

If you have the time and means, try your best to cook homemade food instead of eating out. Eating homemade meals will save you a ton of money, not to mention your waistline! It is way better to know everything that goes into the food you put in your body and be behind the process of making it. That way you can better manage your intake, cooking methods, and the cleanliness of what you are eating.

Produce your own energy

Producing electricity with solar panels is becoming more popular. There are provincial and federal grants here in Canada to encourage homeowners to invest in green technology. Although there are still many things to figure out, and the cost is a bit of an impediment for some, there are a lot of long-term saving benefits from producing your own energy. In some cases, if you produce more than you need, you can even be compensated for the extra energy that can be supplied to the local grid. I am super interested in learning more about solar panels and have reached out to a few individuals about the logistics for our home. Let me know if you would be interested in me sharing in the comments!

I wish everyone a zero-debt life. Debt is one of the most stressful things in my adult life. I am looking forward to the day I do not owe anybody any money and I can start feeling like nobody can take my home away from me.

Let me know what are your thoughts and experience on debt?

Hey, Claudia here

I am a senior graphic designer, a dog mom, an advocate for a zero-waste lifestyle, climate change, and sustainability. My articles are based on personal experience and well researched to give you the best source of information for all things zero-waste.