Getting Out of Debt_2 in Three Steps: Find Where You Can Save
Getting out of debt_2 is all about finding where we can save like in Growing Your Own Organic Garden but let’s do a recap on the first two web pages. The first one is on getting to know where we are, doing the budget spreadsheet, getting credit report and the Fico Score while the second one is on doing another way of doing budget spreadsheet and getting a monthly summary of income and expenses.
The monthly summary will let us know if we can pay for the monthly expenses and if we are short then we will have to do some digging in order to find where we can cut our expenses. In the sample we had on the previous page, we were short $301. Now we will look at the budget to see where we can cut our spending.
It is important to cut the spending because if we have to juggle the money coming in and the money for paying bills and come up short, we will end up having to be late. Being late with the payment will cost us money and will get us deeper in the hole than just the $301 we found in the previous page.
Let us therefore find in our budget where we can cut some expense that is not really essential. This is especially important these days when we cannot get a decent raise in the pay cheque. In fact from 2010, the increase has only been in the vicinity of 3%. Let us show the power-that-be we can beat them at this number game by giving ourselves a 10% raise.
How do we do this you asked? Well, take out the budget spreadsheet and start scrutinizing each item. Look at how much you spend eating out. Restaurant meals is one way we people waste our money on. Let’s cut the twice a week restaurant meals to once a week. A $20 savings per week will net us $80 a month.
Now let’s look at how much we spend on cell phones. Yikes, it’s $200 a month. Try to get only the basic amount which cost only $30 a month. Of course you won’t have those lovely ring tones. Nor could you text your friends but you could still call them anyway. That’s a savings of $170.00 a month and when added to the restaurant savings of $80 a month will save us a total of $250.00 a month.
Then there’s the cable bill. Do we really need hundreds of channels? When will we have time to see them? We don’t want to keep watching TV and turn into couch potatoes that will just make us sick, do we? So stop paying TV cable bills. Instead Watch Over 3,000 TV Channels Directly On Your Computer For Free!
Clicking that aforementioned link will save you money and I don’t know how much will that save you money monthly. But this I know. The savings you will get out of this will net you over the $301 dollars that we were short on paying our bills. Now you will even have extra to pay more on the bill that accrues a higher interest. That will help in getting out of debt_2.