Having strong will to spend less money than you earn is a must if you are deep in debt. Curbing your spending requires self disciplines and some sacrifices. This is especially true if you are living paycheck to paycheck and you have a family.
Learning to live within your means is more than having enough money in a paycheck to pay your bills. There should be money left over from your paychecks to use in an emergency if you need it. If you don’t have something in your savings account then you need to find ways to save more money each month.
Start With a Budget Plan to Spend Less Money
Spend less money discipline begins with a plan and a sound financial plan begins with a household budget. The first budget will be the hardest to develop, but once you get the hang of it, it won’t be so time-consuming the next time.
Each family member might value a certain activity differently. With a family budget you can find a common ground that will guarantee financial success if all your family members are sticking to it.
As a budget is only as good as the people using it always keep yourself accountable to someone — such as your spouse. Have a person who will call you out if you are spending too much money.
Ways to Spend Less Money On Food and Clothes
Look at all areas of your spending. Slash the items that aren’t necessary for your survival because you are in survival mode now. Luxuries are off the menu until you do no longer fear the phone ringing — thinking it is a debt collector on the line.
Day-to-day spending of ‘petty cash’ adds up to a considerable amount over the course of a year. Even buying one cup of coffee a day can amount a bit of money at the end of the year, which you can use to pay off high interest debt.
A good way to start slashing your spending is making your own lunch and taking it to work and not buying it from the shop. You can also save a lot of money by cooking your evening meals at home than going to takeaways or restaurants.
If you spend a little too much on clothing try your unused clothing that is still hanging in your closet. And each time anyone wants something ask if it is necessary to have that particular item and search around the house first to see if you already have it.
Develop New Good Habits to Spend Less Money
It takes about three weeks to make or break a habit. Start at the beginning of a month and try out your budget. Leave notes on the bathroom mirror and the refrigerator if you have to until you get the hang of the new way of doing things.
Always prepare a shopping list before you go shopping for groceries and make sure you stick to that list. Write down every dollar that you spend for the shopping and then add that spending up. Add this to your budget and then work towards slashing as many areas of spending as possible.
When you get a raise at work or a holiday bonus treat the extra money as a way to save more and always put it in the savings account.
Spending habits don’t change overnight. But if you can discipline yourself to spend less money you can often find ways to come up with the money to pay debts off without the help of anyone else.
What to Do Next?
If you are deep in debt and really want to get out of it start creating a budget and set your financial goal. Create a plan to achieve the goal. You will want to closely watch any amount of money coming in and going out.
Click here to start your first step!