This is my first guest post on Debt Free Martini from a very talented freelancer, writer, and friend Michelle. We all can use a few tips on living on less while we pay off debt…enjoy.
The less you spend, the lower will be your debt amount. Living life on less does not take away all of your luxuries. It rather helps you to become a smart money manager and eliminate debts. There are several ways to cut your unnecessary spending effortlessly and save a few dollars. That dollar may help you to pay off the outstanding balances on your credit cards easily.
How to live life on less to become debt free
Living life on less does not necessarily mean that you’ll have to live in misery. You can easily enjoy the things you love. The basic difference is you need to deal with money strategically to spend less and save more than what you can usually do. Thus you can save money on your expenses and use that money both for your savings and for the debt payments as well .
1. Optimize the food costs
You can easily save $25 every week to avoid expenses on lunch while you’re in office. Brown bag lunch can save $1,300 per year. So, just think how much you can save throughout your whole career. You need to eat less at expensive restaurants in order to save money. Other than that, you can also save money on food by using leftovers to make some new dishes.
2. Trim your gift list
Try not to splurge on gifts in festive season. You can save a huge amounts if you consider the stores where discounts are available. Utilize your creativity and make DIY gifts at home. You can make many lovable yet cheap homemade gifts to pamper your friends and relatives. Research online to get enormous DIY gift ideas.
3. Say “yes” to free entertainment
You can spend hundreds of dollars on Internet, TV, movie subscriptions, sports events and so on, but did you ever think that you can save some money if you decide which entertainment is really worthy for you? You can rent CDs to enjoy movies instead of going out to theaters where snacks cost so much or try to avoid parties and night outs with friends. You can also enjoy a nice day out by arranging a picnic in the park or can enjoy a local event with friends as well.
4. Ditch the grocery bills
You may be able to save money on grocery in different ways. You can easily save money on groceries through the discount coupons – available at the stores. You may also be able to save money on grocery items if you buy things in stocks. Actually shopkeepers offer additional discounts if you buy loads of items at once. This even helps you save money on gasoline as you are not required to drive frequently in order to buy items every time you need them.
5. Cut down your electricity costs
Try to cut down the electricity cost at home. Use fluorescent bulbs to save energy. Hang your clothes for natural dry and let the windows open in a cool summer night. Try to install a power strip in your home. This helps in saving energy and money as well.
Useful ways to become debt free
Saving money is always the key to a good financial life. But, you can save money even on debt payments!. How? Yes! Just pay the bills on time. Because once you miss your payments, creditors will surely increase the interest rate and this increase will make the amount double you pay every month.There are many options that are available to become debt free. You need to decide if you can get rid of debts by yourself or you need a professional help from debt settlement company.
1. You need to reduce the usage of credit cards in order to become debt free. Use the plastics when it is required. Moreover, use cash instead of cards then you can stay within your limits and buy things that will be affordable to pay off.
2. Apply for low-interest credit card instead of high interest credit cards to stay comfortable in your financial life.
3.You can combine your debts and then try to make your payments triple times the amount that you pay each month.
4. Go for debt snowball method. You need to organize the debts carefully. Arrange the debts in descending order of the interest rate. Thus you’ll pay off the high interest rate debts first and then move according to your list. This will help you pay off your debts in an affordable way and also avoid accruing interest on the principal balances.
5. Always pay more than the actual balance. Thus you can lower the outstanding balance and can pay off the debts fast.
Apart from these, you should take initiative to increase your income level. Thus you can meet your expenditure easily and can pay off debts effortlessly. Work hard to earn extra money as situation demands. Moreover, make some wise decisions to attain financial freedom in future. Start today because there is no such particular day to start frugal living. The sooner you start saving, the longer you can live a stress free financial life.