Cutting back on spending
The time has come for you cut back on spending so you can afford to live again. Almost everyone has debt and without taking proper care of it, it will continue to grow until you are so far upside down in debt that you don't know what to do. If you are ready to get serious about cutting back on your spending habits, it's time to follow these simple tips:
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- Will it really kill you to walk instead of drive? With the high price of gas nowadays, you need to look for some ways to save money on your fuel expenses. Hopefully you live close to where you work so you can walk or ride your bike to work. If you can limit your driving to just one car per month, you can easily save $100 or more a month in fuel expenses. Try using public transportation instead of driving. One stop at the gas station is usually $25 or more, one monthly bus pass is normally only about $25. $25 versus $100 or more in fuel, you do the math!
- Stop eating out and paying 3 to 4 times for a meal that you can make at home. If you order Chinese food, you will probably pay about $20-$30 to feed your entire family. If you purchase the rice, beef, and vegetables at the store, you will only spend about $5-$10 and you will enough ingredients left-over to make more. Try to plan your meals for the entire month and leave a little extra for left-over to take to work. When your meals are planned in advance, it is much easier to stay on budget and you will make fewer trips to the grocery store.
- When you do go shopping, stick to a cash only budget. If you know you only have $40 to spend at the store, you won't be grabbing extra items. Grocery stores are designed to get people to impulse shop. Let's say you are at the store to purchase a loaf of garlic bread and some spaghetti for dinner, on your way to the pasta aisle, there is a display for buy-one-get-one free cereal bars. At this moment you are thinking "that is a good deal, I should buy them." Now you finally get to the spaghetti and you are on your way to the bakery, you pay another display that is buy 2, get one free for Pepsi products. Again, you think "wow that is a good deal" and you put it in the cart. By the time you reach the checkout stand your $4 dinner meal has turned into a $25 shopping trip. If you can resist the urge to impulse buy, you will save yourself a ton of money each month!
- Never purchase a brand-new car. The second you buy the car it depreciates when you drive it off the lot. Only buy used cars, even if they are only a few months old. Buying the car used will save you a ton of money and you are getting a better deal. Watch for cars that have sat on the car lot for longer than a month. Car salesmen are eager to meet their quota and they will do just about anything to sell you that car. This is a great way to negotiate for a lower interest payment and to reduce the asking price for the car.
- The final way to cut back on spending is to cancel luxury items from your lifestyle. You can get by without a cell phone and you will survive without cable television. Plan a camping trip instead of an expensive trip to Hawaii. Look for ways to cut out unnecessary spending and you will be able to get out of debt and have more money.
