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What many people don’t
realize is that their lifestyle contributes to their debt. You may think that
you’re cutting expenses as much as you can, but you are going to find out
within the next few minutes how you can make additional cuts and live even
better.
If you’re buried under
debt from all sources, you’re not alone. Starting with college graduates, there
are over 40 million people who struggle with student debt. Opening it up to all
of America, the average household credit card debt is around $6,000. Finally, the average mortgage debt
is around $300,000.
Yikes!
The fact is that you
don’t have to be buried underneath tons of debt. You don’t have to be looking
at disconnect notices or wondering how you are going to pay your living
expenses. None of this has to happen to you. If it is happening, you can stop
it. You just have to make some changes.
Start Downsizing Right Now
It’s time to start getting rid of stuff you don’t need and things that are costing you money. You can
capitalize on the nice things you have that you have no use for by selling them
on Facebook groups, eBay, or Craigslist or simply have a yard sale.
I’m all about not keeping
unnecessary things around. In fact, I won’t buy new clothes unless I absolutely
need them. I remind myself daily that the goal is to retire by the time I’m 35.
I really want that because I have seen too many people work their lives away
and have little to show for it by the time they reach retirement age.
Once you eliminate the
clutter, you can take a look at what you really have. These are the things that
you need, so make sure you use them. Instead of going to the store and buying
something you already have because you need it and can’t find it, organize
everything so you know what it is.
It’s amazing how many
people clear the clutter and find that they have four or five of something. In
that case, put those online sales platforms to use so you can get some of your
money back on them.
Eat Well and Cheap
Food is another area you
have to watch. I had to start watching how much money I spent on food. I knew nothing
about couponing or discount grocery stores until I started exploring ways I
could buy groceries cheaper without starving myself.
The internet and the
Sunday newspaper are great sources for coupons. Look at the sales papers for
individual stores to find the best deals. You also need to review coupon
policies so you aren’t surprised at the checkout.
Some communities have
couponing classes at the local library or another location so you can learn how
to stretch your dollar as much as possible. Do a little Facebook search to see
if there are any events scheduled in your area.
Also, don’t forget about
the discount grocery stores, like Aldi, where you can get your groceries at 50
percent to one-third of the cost you would pay elsewhere. There are few name
brands in these stores, but they tend to carry healthier options so that you
can eat well without paying a fortune. Due to the lack of name brands, there
may be no coupons. You can combine coupon shopping at other stores with
discount grocery shopping and still come out better in the end without putting
your nutrition at risk.
It's also good to go
homemade with your meals. It can be tempting to drive through a fast food restaurant
because it’s convenient, but your wallet and your cholesterol pay the
consequences.
Hygiene without the Cost
Hygiene products tend to
cost. If you are the type that has four bottles of half-used lotion sitting on
a shelf, commit yourself to using those before buying more.
As with grocery shopping,
health and beauty products can be purchased using coupons. You can also explore
products that are very good for their price. Just because it is cheap doesn’t
mean it’s bad. You have to look a little harder to find the shelf tags for
these cheaper products, but they’re there.
Pay Cash for Everything
Of course, paying cash
for everything has some major advantages. First, you already have the money.
You won’t owe anyone for spending that money. When using credit, you are
spending someone else’s cash and you have to pay them back with interest. The
interest is how they make a profit.
Therefore, paying cash
for everything should keep you from overusing your card. You won’t have to pay
any interest which is especially helpful if you tend to overdo it. Everything
you purchase is free and clear. Just make sure you don’t overdo it with cash
either. The whole point is to save money.
Budget Strictly and Save
Lastly, you need to
create a budget that you stick to and save money every chance you get. This is
something you have probably heard a million times, but it works. Budgeting can
be difficult to get used to at first, but you will love the result.
Jacob
recently entered the personal finance blog world with the advent of Dollar
Diligence. He’s new, so if you want a fresh voice, feel free to read a few
articles. Twitter: @DollarDiligence
