Now that you know where every penny goes, you’ve created a budget, created an emergency fund, and come up with a plan to tackle debt, it’s time to cut expenses. You know what you’re spending and amount of your expenses. Now, see if there is something you can live without. A lot of time, once you see your money journal and realize that you may have an $80 a month coffee habit, cutting expenses occurs naturally. As stated before, when we realize how much we spend on a weekly basis and what we spend it on, we realize that there are things we can live without. So, some items will automatically drop off the list of expenses. Others, like cable t.v., landlines, groceries, dining out, etc. should take a second look.
There are many options to cable t.v. today and we have to look at how important it is to us and consider our options. Telephone service is another expense to consider. There are several very economic alternatives to cell service that actually use the major companies’ cell towers. Right now we spend less than half of that amount of a major company contract while not sacrificing service coverage and still receiving unlimited talk and text. As for groceries, paying attention to what is on sale and using coupons benefit the budget tremendously. It’s all about considering what is necessary and determining if it is worth spending the money.
Everyone’s situation is unique. For some a side job will provide extra income to pay off debt. For others, working a few overtime hours works beautifully. This is the part of debt reduction in which we must get creative. There are millions of ideas of how to make money “on the side”. A quick google search will bombard you with ideas.
Some jobs can be done at home, some are jobs or services that you can create to bring in extra income, and there is always pizza delivery or other jobs that can actually amount to an extra payment on one of your bills. Everyone’s situation is different, I know. You may be a single parent without the extra time to sacrifice, or you may have a young family that makes it necessary for you to be at home after normal working hours. You must decide what is within your means and go for it. Just remember, there are numerous on-line options that are available for you to explore.