Spring Into a Debt Free Life
How closely do you watch your spending? You may forgo dinners at expensive restaurants, extravagant vacations and shopping sprees, but that certainly doesn't mean you're living frugally. It's time to do a little financial spring cleaning! Here are three ways you can save more and achieve a debt-free life.
Inventory Your Credit Information: Gather all of your loan and credit documents, including your credit scores from each of the credit reporting agencies. Use this info to see where you need to improve. Next, tally your income, debt repayment obligations, expenses, and all of your miscellaneous cash expenses. Once you've met your basic obligations, use any extra money to make larger payments on high-interest and high-fee debts.
Inventory Your Unused Impulse Buys: You've stopped buying luxury items that catch your eye but may have un-worn clothes, Blu-Ray boxed sets, and unwrapped home décor items doing to help you reduce your debt? Take stock of your nonessential valuables, and start using available online tools to sell them off. You likely won't get full price, but they aren’t making any money sitting in your closet, either. The extra dollars you make can go toward paying off your credit card debt sooner.
Inventory Your Daily Routine: That morning cup of coffee-house coffee, eating out for lunch, the premium cable package, your subscription to streaming video services: How much do you really need these? Make your own coffee and lunches at home, reassess your entertainment and make adjustments. You’ll immediately notice how much cash you have in your pocket at the end of the month! If it helps you to visualize your savings, put the money you would have spent on these items in a jar so you can see the impact of your changes.
When it comes to basic entertainment, you'd be shocked at how little you use compared to how much you pay. Get rid of your cable, and look into streaming media players that will route your existing streaming subscription channels to your TV. It is very easy to let the seemingly small expenses add up and turn into money-draining liabilities. Brighten up your spring season with a lighter financial load.
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