1 - Keep Track of Your Spending
The ideal would be to keep a log of every purchase, from the smallest item up to the big purchases. If you have trouble keeping track, then carefully review your credit card and bank statements to review your recent transactions and determine how necessary they were. If you don't keep track of how much money you have outgoing, there is a great potential for quickly escalating debt.
2 - Live Within Your Means
When making purchases, use cash or your debit card instead of paying with a credit card. This will help you identify how much money you are actually bringing in, and avoid owing more to credit card companies. Save your credit card for emergencies and not everyday use, if possible.
3 - Fail to Plan, Plan to Fail
Only make planned purchases ... resist impulse buys. When you go grocery shopping, make a list of items that you will need for the week, and stick to it. A little advance planning can go a long way. And don't hesitate to clip coupons or sign up for special mailers or even text message specials. Many grocery chains have "clubs" or member groups to track purchases. Check online coupon web sites to save even more.
4 - Collect your spare change in one location
Spare change can add up quickly! Piggy banks come in all shapes and sizes, and saving just fifty cents a day can really add up. If you don’t already have one, create an emergency fund out of your spare change. Even put in a couple of dollars when you find them in your pockets (or in the laundry).
5 - Be smart about how you indulge
Cut back on the non-essentials. You might love your large white toffee half-caf no-foam latte. But consider the cost - not only to your pocketbook, but to your waistline! Speaking of which, restaurants are a costly treat - especially when consuming alcohol. Have the margarita or glass of wine at home instead of with your dinner.
6 - Travel Smart
Gasoline is something many of us don't even consider ... it's essential to get places, so we fill the tank. But how much of our driving is truly necessary? Think about how much money literally evaporates in your gas tank due to excessive driving. Keep your driving to a minimum. Keep your tires properly inflated and the car tuned up. You may not notice, but you will get better gas mileage and over a period of time, your savings could be significant.
7 - Find free activities close to home
Public libraries are a great resource - not only for books, but for free CD and DVD check-outs. Just make sure to return them on time to avoid late fees! Many local parks offer walking trails, basketball or tennis courts. Some communities have public swimming pools. These can be great, healthy and cost-effective alternatives to movies and gratuitous shopping trips.
8 - Pay on time, as much as you can
The sooner you can pay off unsecured debt, the better ... so long as you have credit card balances, you are leaking interest like a sieve. And if you have experienced late payments, it is possible your rate has increased. Do you even know how much your credit card interest rates are? Find out, and call your credit card companies to see if you can get your rates reduced. It doesn't hurt to ask.
9 - Refinance or modify your home loan
If you own a home, many mortgage companies are open to modifying your note - especially in this down market. And if you do not qualify for a loan modification, consider refinancing.
10 – Don’t Ignore a Problem
Falling into debt can be intimidating, and many people don’t want to face the issue. But be brave … don’t be afraid to ask for help. SYD Financial is available to answer your questions and help guide you back on the path to financial health. But you have to be courageous and take the first step. Empower yourself by making the right choice to live a debt-free life.
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