How to Stay Out Of Debt
It is so easy to get into debt, but not as easy to get out of it. The best solution is of course never getting into debt in the first place. Here’s my advice on how to scrape those pennies together if money’s a bit tight to avoid the debt cycle.
The first thing you need to do is set a realistic household budget. List all things you have to spend money on i.e. Gas – Electric, mortgage, then list all the things you want to spend money on. The goal is to separate between ‘Need’ and ‘Want’ for example you ‘need’ to eat or you ‘want’ that new CD. I would also thoroughly recommend using an online money management program to track your spending and help you get a bigger picture of your finances. Read my post on Kublax if you’d like more information.
The idea is to look at you outgoings and see where you can make cut backs, set yourself a shopping budget for food. Some examples of how to save money on groceries and household bills are as follows:
1. Ask your supermarket what time they mark down there products, and purchase these when they are cheaper. Most things can be frozen to restore the sell by date.
2. Grow your own vegetables and fruit allot cheaper than buying.
3. Use price comparisons sites to check you are not paying to much for your gas – electric or mortgage.
4. Check with your energy supplier to see if you have an economy setting, do you washing etc in the evening as it is cheaper.
5. Take a shower instead of a bath, its cheaper.
6. Do you really need the heating on? Can you just put on another layer of clothing?
7. Hang clothes to dry on a rainy day indoors over the bath or use a clothes airer, it’s cheaper than the tumble dryer or radiators.
8. Use natural products for cleaning its cheaper and better for your health!! eg. Vinegar for cleaning windows.
Overall just think about ways to do things on the cheap. Research is rewarding and you will be saving money and getting out of debt. I’m always reading brilliant blogs on frugality such as Almost Frugal.
As my wise mother told me as a kid – If you look after the pennies, the pounds will loook after themselves.
Leave a Comment November 6, 2009
