Frugal Living, Thrift, and Saving Money
Frugal Debt Tips
Bad Money Habits
Get rid of bad money habits that keep
you from getting out of debt. Stop impulsive shopping, manicures, eating
out, and other unnecessary expenditures and use that money to pay down your
Make a budget and keep to it. Know how
much money is coming in and how much money is going out. Put a name to
every dollar you earn, whether it is food, clothing, shelter, or savings.
Get rid of your credit cards and use debit
cards. According to statistics, you will spend anywhere between 30-40%
less money when you use cash. If you can't pay cash for your purchase, you
can't afford it.
Start paying off your debts, one at a
time. With the snowball method, you make minimum payments on every bill
but the lowest one. Hit that one hard. When it is paid off, apply
the money you were paying to that bill to it. Getting rid of your bills
and debt as quickly as possible will keep you motivated.
Take on extra work, or make ebay your best
friend to raise extra money to pay off your debt.
Set goals. Chart your progress.
Reward yourself for your discipline. Make getting out of debt a family
goal. Make sure everyone understands how money represents your time, and
you are giving others control of your lives with time. Everyone wants to
be "free." Children will understand. Work as a family to become debt
If you think you have a psychological
problem with debt, seek help. If you just need motivation, listen to
people like Dave Ramsey on the television or radio and read debt reduction
Paying Off Debt
Always pay more than the minimum
payment, or you will never get rid of your debt.
Wait 3 days before making a major
purchase, and don't buy anything over a specified dollar amount without talking
it over with your spouse. Always ask yourself (and your spouse) if there
is anything that can substitute for what you want to buy, or anywhere you can
find it at a better price.