One way to get out of debt is to begin living by a strict budget. You allocate your earnings to your various expenses, including debt. If you stick with your budget you’ll be able to get rid of your debt. But what about after you’re done paying back your creditors? What do you do then?
It was that strict budget that allowed you to get back on your feet. So don’t revert back to your old ways. Keep the same budget, only change the label titled ‘debt’ to ‘savings’. Establishing a savings is what will keep you from getting into debt ever again.
Before, when you ran into an emergency expense like a medical bill, you would simply put it on credit, whether it be a credit card or by getting a loan. But now that you have a savings account, you will just use that money to help with unexpected expenses. If you don’t have any, good for you, you’ll keep your money and be able to earn interest on it.
If you have a budget and money is tight, you might want to consider cutting back on several things. Even if you think doing a small change is not a big deal, do it anyway. Do not dismiss cutting back on the little things. You might think that just saving a couple of pennies every day by turning off the lights won’t be a big deal, but a few cents a day equals a few bucks a month, which equals a few hundred per year.
Here are some minor things you can do that won’t make you the next Rockefeller, but will pad your savings account by a few bucks every month.
Eat At Home
Cooking for the family at home instead of going to a restaurant is a good way of saving money. By going to a restaurant, you’ll have to pay for gas to drive there and back, a few bucks per drink, appetizers, the main course, dessert, taxes and of course a tip at the end. By eating at home, you’ll be eating healthier and you’ll save a lot of money. You don’t have to cook every day. Save the leftovers and you’ll have extra meals for the next few days too.
In many parts of the country it can get unbearably cold, so heating your home up is a must. But it doesn’t have to cost you an arm and a leg. If you have drafts around doors and windows, weatherstripping can help keep the cold out and keep the warm in. Having a well insulated home will also help in maintaining the temperate of your house too. Having a carpet instead of wood floors will also make your home a warmer place in the winter. Finally, don’t keep your home so warm. It’s not the job of the furnace to make winter into summer. It’s still going to be cold, just not that cold. Simply wear warm clothes and keep the house comfortable, not hot.
Saving on your monthly electricity sounds easy because it really is. Here’s a few ways you can reduce your electricity usage. If you’re not in a room, turn off the lights. Unplug TV’s and computers when they are not in use. Even if they’re not on, they are still drawing energy. Buy energy saving light bulbs and when it’s time to upgrade your appliances get the ones that save the most amount of electricity.