Debts are like monsters. They can gobble up your financial and emotional peace. You feel stressed out, dejected and can’t find what to do to get rescued. But there are ways to get rid of debt monster. One of the most efficient weapons to kill your debt monster is saving money. The more money you can save, the extra you can pay towards your debts. Building financial cushion can boost your confidence to pay off the debts easily.
Being in debt, a part of your income goes to satisfy your outstanding debts along with other bills (electricity, groceries, gas, etc.).
But, if you follow certain saving tips, you can reduce your bills substantially. Reduced bills, in turn, help you save some money on a regular basis, that helps you to get out of debt earlier.
1. Give due importance to saving
First of all, try to save a minimum amount of money each month. One smart way to do this is to link your salary directed to your savings account. As soon as your income is deposited in your account, an amount is deducted from your salary as saving. After a certain period of time, you can save a lump sum amount.
2. Formulate a realistic budget
You need to set up a realistic budget keeping into consideration your income and expenses. Your budget should be such that you do not spend beyond your limits and also which doesn’t lead you to live in deprivation.
3. Change your spending habits
This is very important for saving money and getting out of debt. Uncontrolled spending habits can lead you to debt. Impulse shopping, whether be it for clothes, shoes, accessories, household items or even groceries, should be avoided at all costs.
4. Curb the usage of credit and debit cards
Keep a check on your credit and debit card spending. Maintain a list of all your bills and take print out of the account balance after every transaction you have carried out. In this way, you will have a clear idea about how much you are spending, how much you have left in your account and how much debt you are incurring.
5. Reduce the cost of common items
There are plenty of items that you need to buy as a necessity. Try to reduce the cost of these items as much as possible. You can use generic brands for the everyday food items that you have to buy like cereals, milk, bread spread, and other such food items. You can also try buying in bulk the food items that are not perishable.
6. Take advantages of couponing
You can get discount coupons in many magazines, newspapers, online websites and even many stores offer discount coupons if you are a regular customer. You should collect such coupons and keep them together and take them with you while going out for shopping. These coupons can reduce your expenditure considerably.
7. Quit bad habits
You may be under the influence of several bad habits such as smoking, drinking etc. These bad habits not only eat away your earning but also cause health related hazards, which again lead to rising medical expenses. The best way would be to avoid these bad habits altogether. This will, in fact, help you save a lot of money.
8. Save energy as much as possible
If you have a computer at your home, it is advisable to turn off the computer when not in use. You need to keep in mind that computer monitor consumes more than half of the total energy consumed by the system. So, in between your work, if you take small breaks, do not forget to turn off the monitor.
It is often seen that many of you don’t turn off the lights and fans before going out of the home. This leads to increase in the electricity bills rapidly. Make a habit to switching off the light and fan when you are not in the room. Use low energy light bulbs as well.
In the case of a refrigerator, you always need to ensure that the doors of your refrigerator are airtight. Space should be there between the walls and the refrigerator for proper circulation of air. You should not open the door of the refrigerator very frequently. Don’t keep very warm or very cold food directly into the refrigerator.
Lastly, When you have multiple credit cards in your hand, the idea of saving money can be difficult. Most of the times you end up spending a lot more than what you initially intended to, leading you into the trap of debt. In such conditions, seek professional advice to prevent yourself from incurring more debts.
Author’s Bio: Amy Nickson is a web enthusiast. She completed her graduation from Oglethorpe University, Atlanta, Georgia. She works as a financial writer and she shares her expertise through her crisp and well researched articles based on money management, money saving ideas, debt, and so on.