We are a nation of shoppers, and for many of us, it's easy and fun to go shopping and buy new things every day. Unfortunately, many people and families live way beyond what they can afford. They save little or nothing and spend a lot of money, usually with credit cards to make up the difference. Now is the time to think about cutting back on expenses, whether you have debt or are close to it.
Cutting back on spending is a good way to stay out of debt and a great way to get out of debt if you already owe a lot of money. Just like going on a diet can be hard but necessary, cutting back on spending can also be hard but necessary. Here are some ways to save money and get out of debt.
Keep track of all your monthly costs.
If you want to spend less money, you should start keeping track of everything you buy right away. You'll be surprised to find out at the end of the month that you probably spent hundreds of dollars on things that weren't important or needed.
Stop Impulse Shopping
If you tend to buy things on the spot and without much thought, which is called "impulse shopping," there are a few things you can do to cut down on this habit. One way to save money is to stay away from shopping malls and stores that make it easy to buy things on the spot. You will still have to shop at places like the grocery store, which may be the worst for giving in to impulses. One way to stay on track is to make a shopping list and stick to it. If you have a shopping list, you won't spend $50 on food you don't need when you go to the store to buy milk.
Carry only a small amount of money.
If you are the type of person who spends money like water, make sure you only have a small amount of cash on you at all times. Don't carry around your whole week's pay with you everywhere you go. Instead, just bring $20 for the things you need.
Stop using credit cards at stores
People who are close to going into debt often use store credit cards and credit cards in general to spend a lot. Having a credit card for every store in the mall is not necessary and will only cause you to spend too much money. If a store worker offers you 10% off your purchase if you fill out an application for a store credit card, politely refuse.
Don't pay for things or subscriptions you don't use.
Going back to keeping track of all your expenses, make sure you look at all the things you spend money on, like your cable bill, phone bill, etc. Many of these things come in a variety of packages. People often buy the most expensive package with the most features, but they don't use most of them. If this is the case, you should cancel or downgrade these subscriptions and only pay each month for things you actually use.
