Difficult financial times leave lots of people struggling to make ends meet. But before you think about taking out a debt consolidation loan or following any debt management plan, here are 5 simple money saving tips which can help you get your finances back on track.
1. Stop Buying Lunch At Work:
How much do you spend buying lunch every day at work? Two dollars? Five dollars? More? If you take a bag lunch to work instead, you will save the everyday costs of your meal and probably be able to choose a healthier option too. Making up a bag lunch every day has been conservatively estimated to save you 1,300-$1,500 every year. Just think what you could do with that?
2. Stop Using The Plastic:
Spending too much every month can be a big problem. And credit cards can make buying unnecessary purchases just too easy. But rather than cut them in half, which will make it difficult for you to use them in an emergency, why not do something which will just make it harder for you to use them? Put them inside a plastic bag and pop them in the freezer. That way you have longer to think over whether you really want to make the purchase whilst they defrost!
3. Get The Savings Habit:
Unexpected bills and emergency purchases such as repairs on the car or a leaking roof can have you reaching for the credit card! However, if you cannot pay off the whole amount in the first month then the unpaid balance will start to attract interest at a rapid rate! One of the easiest ways to stop this happening to you is to save part of your wages every month. Saving $500 a month will soon mount up but if you cannot manage this, then save what you can. You will soon have a nice little savings cushion which will stop you falling into credit card when you get hit by the next unexpected bill.
4. Budget For Regular Items:
If you do something regularly, then you must budget for them or the costs of them could actually be what is sending you into debt. If you go out to a special restaurant once or twice a week, then figure out how much it costs – meal, tip and gas – and plan for it in your budget.
5. Pay With Cash
Use cash to pay for your daily items. This makes you very aware of just how much you are spending on a daily basis. If you want, carry an envelope with the exact amount of cash you will spend during th eday, and no more. This method stops you form impulse purchases and keeps you within your budget.
Use these five proven techniques and you will soon find yourself in control of your money and getting out of debt fast.