Today’s post is by one of my friends Michelle, an accomplished writer. Several of her write-ups are being published on prominent websites.
You can find her work at sites like DebtFreeMartini.com and ThinkingWealthy.com.
Today she’s talking ways to save and keep debts at bay:
Debts are any how bad. It can destabilize you financially as well as can create problems in your personal life. In a nutshell, the best way to lead a happy life is to save money on a regular basis. This line is applicable for everyone, no matter how poor or rich you are. Saving money will help you to stay on top of your finances and avoid getting rigorous debt problems. If you’ve already too many high interest debts that are enough to spoil your confidence, you need not fret as there are always some smart ways in which you can save money to handle the problem.
8 ways to save the most to settle debt troubles
How to keep the debts at bay? Well, the answer is not always that simple. By focusing on some proper and thorough ways, you can beat with the problems and can stay out of it. The first and foremost tips is to save maximum part of your earning so as to become successful in your goal. The other ways are as follows:
1. Try to save at least 10% of your income
According to all financial advisors, a person should save at least 10% of his/her monthly income. You should follow this suggestion to build up a fat savings. If you don’t have this fund to support yourself, you may have to take out loans for which you’ll again become liable to repay with hefty interest rates. So, cut off your unnecessary expenses and save the money to resolve the debt problems.
2. Create your own bank
Staying financial prepared is always a wise decision. Emergencies are unpredictable . So, you should save some money on a regular basis to build up a cash cushion. Thus, you can stop blowing your fixed deposit or other savings on an emergency.
3. Don’t spend beyond your limit
It is quite often seen that many of you spend more than what you are actually capable of. This creates a big hole in your pocket. It always pays to live within your means. This helps you a lot to save more.
4. Pay with cash to curb expenses
Anything from refinancing your present mortgage loan or skipping that daily coffee on your way to office can be a wise way of saving money every month. Make a list of the daily expenses that you make such as transportation costs, grocery costs, entertainment and others. Or carry some cash instead of your credit cards to hold your over shopping urge. Don’t miss any single area so that you may be able to curb expenses wherever you may feel it’s possible.
5. Get educated about finance
People should know some basic financial knowledge to keep safe distance from debt troubles. Reading good financial books, journals or taking classes of financial gurus will help you to avoid some common financial mistakes. The more you make yourself aware the better you’ll be able to avoid those and build a good financial future as well.
6. Use your plastics carefully
One of the main reasons behind personal debt problems, is careless usage of credit cards. It becomes quite normal to take out multiple credit cards and to use those cards extravagantly. And this leads many of you into acute debt problem. Remember, You need to pay off the bills of your each and every purchase with credit cards. Ignoring the payment dates or late payments are nothing but welcome more debts. So, it is advised that you should use your credit cards tactfully.
7. Take advantage of coupons, discounts and sales
When you’re looking to save money to minimize your financial obligations you should find out some ways to save some money. Try to shop thrifty while getting the groceries, clothes, school supplies so on. You can get deals, discounts and most importantly coupons on your shopping. Using coupons, shopping on a big sale can help you to save lots of money. But, to get such advantage you need to be organized in a proper way. Try to organize all useful coupons and use them accordingly, keep updated about sales, deals and discounts on your favorite store so that you can get items at your favorable price.
8. Review your insurance coverage
If you have enough insurance coverage on your auto insurance or health insurance policy and you’re going through a tight budget, you need to make sure that you’re just paying the exact amount of dollars for the necessary coverage that you may need. Negotiate with the insurer once you find your premiums are getting high. Ask the insurer to cancel the extra coverage for which the premiums are getting high. Thus you can save some money.
Remember, sometimes small things can also save us thousands of dollars each day. So, you should be financially diligent to catch each and every chance to save every penny in order to create a big savings. Getting organized with your money matters will help you to fight with financial obligations that you have in your life. Having a well planned budget is as necessary as a tooth paste in your toiletry. You need to follow the budget and other good financial practice consistently in order to avoid debt thousand miles away in your life.