EASY WAYS TO REDUCE YOUR DEBT?
Do you want to reduce your debt? Of course you do! With a little guidance, you can. There are two ways to manage debt: spend less and make more money. We are gonna do both!
Spend less money
- Be a better shopper: If you had to pick an expense that will bankrupt you, groceries tops that list. Learn how to cook meals that cost less and go further. It just takes a little planning. For instance, a pasta and tomato sauce with ground beef is very inexpensive to prepare and feeds a large family.
- Cut back on junk food. It isn't good for you anyway. Be a smart shopper; try buying most of your groceries when they're on sale.
- Limit eating out. Not only is it expensive, it's not as healthy than eating at home. Instead of blowing all that money, you could be stashing it or paying off some of that debt.
- Be conservative: Everything is expensive: Gas, electricity, utilities... When you look at the daily costs of these bills, it doesn't sound like much, but, boy, do they add up at the end of the month.
- Only drive when you have to. Plan your errand runs. Drive a little slower.
- Turn lights off when not using them. The power company is already rich. And the more money you give to the power company, the less liquid money you have for you and your family. I used to tell my kids "the more money you waste on electricity, the less money I have for you". The threat of less junk really got to them...lol
- Don't let water run. Not only is it costly it isn't conservative. Save Mother Earth.
- DIY. If you can do it yourself, do it! When I have a vacant rental apartment, I do the painting and cleaning myself. I save hundreds. If I have an air conditioning problem, I call my wonderful ac guy. When you need to hire someone, ask your friends if they can recommend someone. Develop a network of people who do great work at reasonable costs. Run your life as if it were a business. This way you make decisions that are financially sound. And it's fun, too.
- Change your attitude. If you are in the market to make a purchase, don't buy it just because you have the money. Be patient, look around. Find the best deal you can. You can apply this method even in the grocery store, especially in produce.
- Live simply or beneath your means. If you make 25K a year and you spend 30K, you are poor. I know several people who made more money than I ever have, and now they're not only broke they owe people money. I made much less but I have more savings than they do.
- Separate your money. I tell everyone to do this. Do not co-mingle your money. Open two accounts: checking and savings. Your checking is for your monthly bills. Calculate what you need in this account for bills. Your savings is your fun account because you get to see your money grow. Then each week or whenever you get paid, take some cash. Not to blow but for gas. Really think twice before you spend this cash foolishly because it's all you're getting.
Set goals. When you finally get to the point where you can stash some of your earnings, set goals for your savings account. Save $500. Then $1000. Don't stop! It's a lot more fun than spending your hard-earned cash.
How you can make money?
How you can make money?
Sell stuff. Clean out the garage, the closets. If you're like most of us, you have accummulated "stuff". Have garage sales or place ads on http://www.craigslist.org/. I love craigslist! It's easy and free! Use this cash to get ahead. Put it towards a bill. What else can you sell? Make a list now!- Work at home. Do you have a special talent? Are you knowledgeable in a certain field? Do you have a hobby? If so, you can have a protifitable web site.
- Start a business. Start a business with your spouse or a trusted friend. Put your heads together and brainstorm a plan. Start small, part-time, and do something you enjoy. Ask yourself "how can I fill a need?" Look through small business magazines. It gets the creative juices flowing.
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