This sounds easy, but to keep track of your costs, you need to know what they are. You can only be sure of what you spend if you write everything down. It's hard to do this. Then you'll have to do something even harder: make sacrifices and live on a tight budget. Oh, that hurts! You and I both hate those two words. But to get out of debt, you will have to give up some things. It will be worth it, which is good news.
You will be investing in your future every time you make a sacrifice and stick to your budget. Always remember that. Every step you take to get out of debt brings you closer to having your money work for you.
On a daily budget, the main costs that you can control are:
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General Expenses It could be anything, from music gear to car washes to computer games. Any things you can think of that you don't need. You might not be able to think of anything, but chances are there is something. At least once a month, when you want to buy something on the spur of the moment, stop yourself.
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b>Food Costs/b> Don't eat out anymore. Most people will have to make a big change, but you have to stop going out to eat because it's too expensive. You should bring your lunch to work, and if you're hooked on $2 cups of coffee from Starbucks, you should stop. Many people can save $50 a month by making their own coffee, $100 by bringing their lunch to work, and $200 by not going out to dinner.
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Costs of Clothes /b>
Before you go shopping, you should always know what you want to buy and stick to it. Shop for everything you need at home. If your old jacket has a hole in it and it's really cold outside, you can go get a new one. But don't go around looking for skirts and hats while you're there. Pick up the coat and run!
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Entertainment Expenses
You want to have fun, and you need to. But if you have a lot of debt, you should give up at least one big entertainment expense every month. No matter what you like to do (movies, concerts, plays, going out to eat, sports, etc.), you should do it at least once a month less often.
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Gasoline Expenses As everyone knows, gas prices have gone through the roof in the past few years. Gas prices have been pretty stable for a long time, but it looks like they're making up lost ground quickly. At $3 or more per gallon, gas is a big cost for most households and needs to be taken into account when looking for ways to cut costs. Getting a car that gets good gas mileage and reducing the number of miles you drive can save you a lot of money. If you have coworkers who live close to you, you could carpool with them and split the cost of gas.
If you follow some simple rules for each of these tips on getting out of debt and making a budget, and are willing to make some sacrifices, you can save a good amount of money each month. That will help you pay down your credit card debt quickly.
