An American Farriers Journal poll found most farriers with debt feel moderately or significantly stressed about it, to the point that it affects their well-being and/or personal relationships.

Once the debt is created, no matter how big or small, it’s difficult to get rid of. For Pennsylvania farrier Joshua Sanders, eliminating this debt is priority number one outside of regular or emergency expenses.

“If you are in debt at all other than your mortgage, the first thing to do is save a $1,000 emergency fund. If you have $10,000 at the bank, you wipe it down to $1,000 and pay off your debt as much as you can with that other money,” he advises. 

The next step is to list all debts from smallest to largest and pay off this debt snowball in that order. Once that is complete, then he recommends restarting a 3-6-month emergency fund and retirement contributions. This plan may not work for everyone depending on their other expenses, family needs, age or other circumstances. However, as a general rule, less debt equals less stress. 

No debt also frees up finances to give back to your community. Sanders follows the biblical guideline of a 10% tithe. For others, this can be donating to a charity or a cause of personal importance. However, debt does not have to supersede a charitable donation. The donation can also be 10% of your time each month, whether volunteering, being a mentor to others or offering up other resources. For Sanders, the important part is to give from the heart — while still being smart about your money.

Gain more financial insights from Joshua Sanders by reading the November issue of American Farriers Journal.