Easy Ways to Save Money and Stay Debt Free

Tips for Saving Money and Staying Debt Free

            With the recent recession and unemployment rates, it seems everyone is looking for easy ways to save money and stay (or get out of) debt. While there may not be just one answer to solve all your problems, following these easy steps to making small changes in your everyday life will definatly yield big results.

1.      Make A Budget.

This may seem like a no-brainer, but it is astounding how many Americans admit to living with no budget, or at least not sticking to one. Making a budget is simple and essential. First, take your monthly income. Subtract your expenses, such as rent, utilities, insurance, etc. Whatever money you have left over is your “spending money,” money you use as you please. To make it even simpler, budget your spending money into categories such as, entertainment, eating out, new clothing,etc.

2.      Make Goals and Start Saving.

The average American has little to no savings, which can put them in a bind when unexpected bills come up. Make a savings account for emergencies, three paychecks worth is a good idea for the balance. It’s also important to outline your goals and start saving for them, whether it be a new car, vacation, or improvement on your home. Then, whenever you get “extra” money (from your tax return, bonus at work, etc), use that money towards your goal instead of just blowing it on something useless.

3.      Pay In Cash

Studies show that people who pay in cash, insead of checkcards or credit cards, spend less. Maybe it’s something to do with seeing the actual bills leave your hand, as opposed to simply entering a pin number or signing your name. This will keep you from using your credit card (spending money you don’t have) or overdrawing your balance, which usually results in a fee from your bank.

4.      Cut Up Those Credit Cards

Not only do credit cards encourage you to buy what you do not have the money to afford, but the longer you take to pay them off, the more interest you are charged and money is lost. If you are out shopping and you want something you can’t afford, it is much easier to avoid the temptation of using a credit card if you simply do not own one!

5.      Smart Grocery Shopping

Make your grocery list and stick to it! Only buy what is on your list to avoid impulse buys. Another great tip is to make sure you only grocery shop with a full stomach, otherwise you are more likely to buy more food because you are hungry and it appeals to you.

6.      Cheap Entertainment

Instead of going to the movies and spending $10 on a ticket and $20 on popcorn, drinks, and candy, rent a movie. Many grocery stores and gas stations have a RedBox Movie Rental, which only charges $1.00 a day per movie. Another idea is to look up your city’s event calender, many festivals, concerts, fairs, etc. are free to the public or very cheap.

Saving money can be a sacrifice, but these small changes in your budget will definitely pay off in the long run.