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 your loan and credit documents, including your credit scores from each of the credit reporting agencies, which are Equifax, Experian, and Transunion[FDG1] . Use this information to see where you need to improve. Next, tally your income, debt repayment obligations, expenses, and all your miscellaneous cash expenses. Once you've met your basic obligations for each month, use any extra money to make larger payments on high-interest and high-fee debts. To help you better understand how to budget well, visit out financial learning center’s playlist on creating a budget.
Inventory Your Unused Impulse Buys:
You've stopped buying luxury items that catch your eye, but maybe you have un-worn clothes, and unwrapped home décor items. What are these items that are just sitting around doing to help you reduce your debt? Take stock of your nonessential valuables and start using available online tools to sell them off. You can research what they are selling for on Ebay and list it at that price to get the most bang for your buck. 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 or loan 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. 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.
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 or list all of your savings on a spreadsheet so that you can see the impact of your changes.
These three easy steps can help you start living a debt free life faster than you ever imagined possible. With strategic planning and self-control, you too can be debt free in no time. If you want to learn more about how to manage your money wisely, visit our financial learning center course on debt management.