How to Get Out of Debts?
Today on Making Money Monday, I’m sharing with you one of my Frugal Ways to Save Money and it’s one of the most important because you can’t save big money without getting out of debts first. One of the most common New Year’s resolution aside from losing weight and getting fit is getting out of debts. I’m sure it’s a goal that we all want to do, but just like losing weight we can’t reach that goal without putting the effort and really work hard to put that goal into action.
Frugal Ways to Save Money: Getting Out of Debts Tips
1.Set your goals and find out what your bottom line is. How much is your total debt? You can’t change your debt factor if you don’t know how much you owe.
2. Stop buying unnecessary things and have a shopping budget. This is one of the simplest rule but most of us have a really hard time to totally do this. I mean when you walk to a store or browse online, you can’t help but see a great deal and then without realizing it you’re already caught up in the buying game. Just a few days ago I went to the mall and there’s a cool Lego toy that my son likes and it’s on sale so we bought it. Then on one of the clothing store I saw a nice sweatshirt it’s at 50% off so I got it. The next day we passed by a toy store and they’re on clearance so I got several for my gift stockpile. Now at the end of the week, I calculated my expenses and of course I spent much more than what I intended to do. One of the lesson I leaned the hard way is that there will always be another great deal and I won’t be able to save if I kept on taking advantage of these deals. That’s why it is important to set aside a shopping budget. Let’s be honest there’s something about retail therapy that makes one happy and there are some day after Christmas sales or other great sales that we should take advantage of because it may save us money later on, but you have to know your spending limit! By having a shopping budget you can save yourself from overspending.
3. List down the things you spend your money on and see if you can cut something out. Taking baby steps is important to be successful in your money saving goal. Do you really need that gym membership? How about buying one less latte a week or how about pack your lunch for work? These are just a few easy changes that can be made that will save you money over time.
4. Apply the money you saved each week to the highest interest accruing debt. Generally speaking, credit cards are going to have the largest interest accruing. So by paying above the minimum payment each month will really help.
Remember it’s all about changing your mindset. By setting yourself on a mission of getting out of debts and doing every bit of step to make it happen, I’m sure you will succeed!
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