Most of the people in the world are worried about some type of debt; it may be their credit card, home loans, education loans, or debt taken at the time of other critical emergencies. No matter how much is the amount, debts are always troublesome and they never let us save for the future. Moreover, most of the time we can make payments that cover the heavy interests only, and the base amount keeps on creating a burden on our shoulders.
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If you are also facing the same trouble in life and need a working solution to get rid of all debts and save more for a safe future then it is good to follow some of these tips. Find some time to read the details below and be consistent with your goal.
How to save money and pay off your debt
Prepare a Budget:
The very first step in managing your finances is to start with a budget evaluation. Most people spend more than they earn and they ultimately end up creating lots of burden with debt. The idea behind budget preparation is to create a long-term strategy for financial management so that you can achieve your meaningful goals and the rest can go to the savings.
Balance the family fun:
We are addicted to comfort and luxuries but the fact is that they are good until they do not lead to debt. Most of the time we keep on buying unnecessary things at shopping stores and slowly the credit card starts violating its limits. It is good to have fun together but choose from budget-friendly options instead of always making a plan for expensive dinner spots.
Teach your child financial management:
This is really important. Kids must be trained towards financial management right from the beginning so that they can contribute to saving. Find the right time to explain to them the importance of money and financial goals and help them to make efforts to start working for the collective goals of the family. When they are made to understand financial aspects at the right age, they will be able to live a life free from debt.
Encourage your teen/s to get a part-time job:
When your child has crossed the age group of 15 or 16 then it is the right time for him/her to initiate a job search, to help ease the stress of bill payments. Some people don’t like the idea of their kids working at such as young age. However, it is not child labor it’s strictly legal. Find a job that is flexible and won’t interfere with their studies but at the same time, they’re earning at least $500 a month. Imagine not having to pay half of your child’s college tuition. Sweet huh?
Start paying off:
There is no point to keep on waiting so long to make the debt payments because it will just multiply the interest amount nothing else. Instead of creating a huge burden on your monthly salary, it is better to pay off all debts from routine savings, and soon you slowly get rid of all your debts.
Think before you buy:
The best trick to save more is to ‘think before you buy. Always prefer to prepare a list before going shopping; it will help you to eliminate unwanted expenses.
When you have made effort for saving, the best idea is to keep on depositing this amount in a separate savings account so that you can have a safe collection for the future.
Stop drinking and smoking:
Smoking is one of the leading causes of death in America and around the world. The abuse of alcohol and smoking kills you slowly. Having alcohol is not a bad thing, but if you’re going to the bars every night or weekend adds up and becomes very expensive.
How much is a bottle of beer on average $5-8? Not to mention tips, you should tip your bartender, come on it’s rude not to. But, I’m sure you see where I am heading here. Buying six-packs at the store or a whole bottle of wine or spirit and making yourself a drink is much cheaper.
How much is the cost of cigarettes? 10 to 14 dollars depending on the state and brand cigarettes. You do the math you will see at the alarming cost that these unsubstantial items cost you. Plus your lung will thank you.
Check out these articles to help you
- How to Stop Spending Money
- How I saved $10,000 in a Year
- Couponing 101: Tips That Will Save You Thousands
Get a Second Income:
Part-Time Job (Waitressing, delivery service, uber)
Blogging (This is what I do part-time that allow me to live a debt-free life)
Ibotta (I saved a ton of money from Ibotta)
Acorn: Investment app (Acorn is a secure and reliable investment app that helps you grow your money sing your spare change, helps you invest your money and plan for retirement)
Survey Sites (Filling out surveys helped me to make extra money on the side for vacation and fancy restaurants)
Saving is hard and paying off your debts is even harder. We all face difficulties and some of us more than some. Making a change is the right start. Comment down below if you have any questions or feedback.