When you are struggling to pay off your debts, and you worry each month how you will be able to afford to live, increasing your income is normally the first options many consider. But reducing your spending might benefit you more than you actually realise.
By learning frugal living not only will you help yourself in the immediate, but you will be setting up habits that will continue and potentially avoid debts in the future. To solve a debt crisis you have to learn how it happened in the first place and by learning to live on less and live within your means you will be on the road to recovering what went wrong in the beginning.
There are many things that will help your journey on the road to frugal living.
Get rid of things you do not need
A good place to start is to get rid of the items in your home that you do not use or no longer need. The money that you can make from these sales can all be added to your debt repayment plan and helping you reducing money owed. This will show you how you don’t need lots of items around you to be happy, frugal living teaches you to want less.
Save those coins
You might think it strange but to put loose change away each day will after a few months adds up and this too can be put towards the debts owed.
Cut up coupons
Cutting coupons can seem a daunting task but if you are wise and only use coupons that you know you will use then this could help save a few extra pennies at the grocery store helping you to spread the budget a bit further.
Roll up your sleeves instead of hiring
There are many jobs that you hire people in to do. So instead do these jobs yourself and use the money that you would have used to pay the contractors to pay towards debt repayment. Learning new skills or brushing up old ones can bring satisfaction of a job well done, an added bonus to frugal living but one that you capitalize on.
Convert gifts and bonuses into payments
Any extra money that you earn outside your regular salary should be used to pay some towards debt repayment and the other into your emergency savings.
Aiming for freebies
If you enjoy certain hobbies then look at different ways in which you can participate at reduce costs. If you like to eat out then try going somewhere where you can take a picnic instead of buying your food. If you like to keep fit then avoid the costly gym memberships and go running outside or try working out in your own home.
By using these tips you will reduce your debt owed. Frugal living at first seems like you have to give everything up, but that is not the case you just have to look at alternatives and make the money that you do have work harder for you.