Many people work a second job to apply extra money toward their own personal debt relief, but why not consider other options first that do not require as much effort and time? If you are wanting to become debt free very soon like I was, you may find my suggestions below helpful. Note: If you have not done so already, cancel and cut up any existing credit cards.
One option to help yourself free up money to pay toward your debt is to eliminate so called "luxury" expenses in your life - such as eating out (you'll be healthier eating at home too), going to the movies (utilize Redbox), routine visits to Starbucks (make your own coffee), and downgrading vacations (go camping or visit relatives/friends). I realize there are many other ways to be more conservative and frugal, but these four were enough for me to get started and saved me a surprisingly large amount of money after just one year:
*Eating Out - My family and I used to eat out at least three times per month, so we decided to eliminate two of those per month. For us, it seemed a little unrealistic to cancel eating out altogether because eating out is very enjoyable for us - not to mention that my wife and I don't like to cook. When I took my family of five out to dinner we were spending approximately $60 each outing, which is a fairly conservative amount. By eating out just one time per month we saved ourselves $1,440 by the end of the year. What we did was apply the $120 in savings at the end of each month toward our debt so that we wouldn't spend it elsewhere. This was very challenging for me personally. You know how it is, sometimes you don't get home until after 8:00 P.M. because your child has a baseball game, or there's parent/teacher conferences, etc. So what are many of us guilty of doing? Order take-out, hit the drive thru at McDonald's, or go out to a restaurant. Of course our intention is to never eat out, but we give in when we're tired, hungry, and out of time. A simple way to alleviate eating out is to prepare a meal the night before when you know it will be hectic the next day. This is old news for most folks, but we honestly were not well prepared people before. What we actually started doing was outlining a dinner schedule on Sunday for the coming week(Monday - tacos, Tues. - lasagna, etc.) because we knew with a written plan we'd be less likely to make the impulsive decision of eating out. Also, if you have a teenager, now is an excellent opportunity to start teaching them how to cook, but for the entire family. My two teenagers were a little more excited about the idea when I allowed them to cook the meal of their choice; however, hot dogs and macaroni were not on the list. They actually had to cook something with some nutritional value.
*Stay Home To Watch Movies - Most people today are using Netflix, Redbox, and the internet for movies, but we used to attend the movie theatre at least once a month as well, and for a family of five, that came with a $40 price tag. We haven't attended the theatre for over a year now. I know it may not sound like much of a savings, and that is exactly why most people do not consider it, but on paper it comes out to be $480 by the end of the year.
*Starbucks - If you do not buy coffee about three times a week from Starbucks like I do, then maybe you have another vice that is comparable to consider. I have completely detached myself from Starbucks and have been making my own coffee before leaving for work every day. I've been roughly saving myself $30 per month which equates to approximately $360 a year - WOW, really?
*Vacations - Honestly, this idea doesn't really pertain to my family and I because the funds were not there to begin with. Our vacations consisted of camping, or an 8 hour road trip to visit relatives/friends. However, if you have the capacity to downgrade in this area, you may want to seriously consider it.
Just by eliminating some basic luxury expenses - although difficult as it was - I saved $2,280 by the end of the year. You may very well - and I hope you do - have more luxury expenses in your life that can be completely eliminated or downsized to apply toward your debt relief. My guess is that you will be physically healthier from it, and remember, you will be teaching your children many life skills along the way such as moderation, patience, discipline, and creativity. Newly developed habits will begin to evolve in your financial world as well; therefore, you will be less likely to fall into debt again.
One option to help yourself free up money to pay toward your debt is to eliminate so called "luxury" expenses in your life - such as eating out (you'll be healthier eating at home too), going to the movies (utilize Redbox), routine visits to Starbucks (make your own coffee), and downgrading vacations (go camping or visit relatives/friends). I realize there are many other ways to be more conservative and frugal, but these four were enough for me to get started and saved me a surprisingly large amount of money after just one year:
*Eating Out - My family and I used to eat out at least three times per month, so we decided to eliminate two of those per month. For us, it seemed a little unrealistic to cancel eating out altogether because eating out is very enjoyable for us - not to mention that my wife and I don't like to cook. When I took my family of five out to dinner we were spending approximately $60 each outing, which is a fairly conservative amount. By eating out just one time per month we saved ourselves $1,440 by the end of the year. What we did was apply the $120 in savings at the end of each month toward our debt so that we wouldn't spend it elsewhere. This was very challenging for me personally. You know how it is, sometimes you don't get home until after 8:00 P.M. because your child has a baseball game, or there's parent/teacher conferences, etc. So what are many of us guilty of doing? Order take-out, hit the drive thru at McDonald's, or go out to a restaurant. Of course our intention is to never eat out, but we give in when we're tired, hungry, and out of time. A simple way to alleviate eating out is to prepare a meal the night before when you know it will be hectic the next day. This is old news for most folks, but we honestly were not well prepared people before. What we actually started doing was outlining a dinner schedule on Sunday for the coming week(Monday - tacos, Tues. - lasagna, etc.) because we knew with a written plan we'd be less likely to make the impulsive decision of eating out. Also, if you have a teenager, now is an excellent opportunity to start teaching them how to cook, but for the entire family. My two teenagers were a little more excited about the idea when I allowed them to cook the meal of their choice; however, hot dogs and macaroni were not on the list. They actually had to cook something with some nutritional value.
*Stay Home To Watch Movies - Most people today are using Netflix, Redbox, and the internet for movies, but we used to attend the movie theatre at least once a month as well, and for a family of five, that came with a $40 price tag. We haven't attended the theatre for over a year now. I know it may not sound like much of a savings, and that is exactly why most people do not consider it, but on paper it comes out to be $480 by the end of the year.
*Starbucks - If you do not buy coffee about three times a week from Starbucks like I do, then maybe you have another vice that is comparable to consider. I have completely detached myself from Starbucks and have been making my own coffee before leaving for work every day. I've been roughly saving myself $30 per month which equates to approximately $360 a year - WOW, really?
*Vacations - Honestly, this idea doesn't really pertain to my family and I because the funds were not there to begin with. Our vacations consisted of camping, or an 8 hour road trip to visit relatives/friends. However, if you have the capacity to downgrade in this area, you may want to seriously consider it.
Just by eliminating some basic luxury expenses - although difficult as it was - I saved $2,280 by the end of the year. You may very well - and I hope you do - have more luxury expenses in your life that can be completely eliminated or downsized to apply toward your debt relief. My guess is that you will be physically healthier from it, and remember, you will be teaching your children many life skills along the way such as moderation, patience, discipline, and creativity. Newly developed habits will begin to evolve in your financial world as well; therefore, you will be less likely to fall into debt again.
Scot Rothery runs the debt relief programs site which provides an overview of programs offered to those who struggle with debt. If you are struggling with a large amount of debt and are looking for guidance and help, you should take time to read the reviews on Debt Reduction and Debt Relief
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