Are you struggling with debt? Have you tried and failed to be more frugal? If you answered yes to either of these questions, you should take a closer look at this guide to frugal debt free living. Living on a budget is something that every household can do.
Take A Closer Look At What You’re Spending
One reason many households struggle to save is that they don’t keep track of where their money is going. Take a month to closely track all of your expenses. Keep track of every last penny you spend, even if you’re just buying a candy bar or a bottle of water.
If you track your expenses and organize the data, you’ll be able to get a clearer picture of where your money is really going. This will allow you to cut back in spending so that you have more money to put toward paying off your debt.
Set Attainable Financial Goals
Being aggressive about paying off debt is admirable, but you’ll want to make sure the goals you’re setting for yourself are reasonable. For example, you’ll want to make sure your food budget will allow you to prepare healthy, nutritious meals that will leave you feeling full.
When you’re setting a budget, you should also be prepared for unexpected expenses. It’s possible that you’ll need to replace one of the tires on your car, or that you’ll have to pay to have work clothing dry cleaned. If you set money aside for these expenses, they won’t set you off track.
Use Cash For Discretionary Spending
In this day and age, it’s common for people to pay for everything with a card. While credit and debit cards can be convenient, they can also make it more difficult for you to track what you’re actually spending. If you limit yourself to cash, you’ll know that you can’t make any more discretionary purchases once the money is gone.
If you’d prefer not to use cash, consider loading money onto a pre-paid debit or credit card. That way, you’ll be able to ensure that your discretionary spending doesn’t spiral out of control.
Find Better Options For Insurance
Insurance is a costly recurring expense for many households. There’s a good chance you could pay less for health, auto, and home insurance. Take the time to shop around and look for better insurance rates. You may want to work with an insurance agent; they’ll be able to negotiate with insurance companies on your behalf.
You may also want to consider bundling your insurance into one package. For example, many major insurance companies offer both home and auto insurance. If you’re able to reduce your insurance premiums, you’ll have more money you can put towards paying off debt.
Frugal debt free living is the goal of many households. If you’re struggling with debt, and you’re looking for ways to be smarter with your finances, you should keep these tips in mind. Paying down your debt and putting more money into savings is easier than you might think.