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Spending More Money Than You Earn

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 Spending More Money Than You Earn

 

If you are consistently spending more then you earn this is a easy way to accumulate debt. To stay out of debt you need to either find a way to earn more money or most importantly spend less. Everyone is always buying stuff they don't need to have. It could be from eating out, buying a coffee at a café, to even brand new shoes, clothes, nic nacs, & other items they do not need.
1.) Ask Yourself!
Ask yourself these questions
`- Do you eat out a lot? Could you cook your own meals?
  - Do you buy coffee at a café? Could you make your own coffee and bring it with you while on the go?
  - Do spend lots on gas? Could you drive less? or look into ways on cutting down on gas for the car?
 - Do you own a cell phone? Could you get a cheaper plan? Could you cancel your landline?
 - Do you own cable or satellite service? Can you lower the plan?
 - Do you pay electricity? Can you cut down on your electricity bill?
- Are you constantly paying with credit? If you not able to pay your monthly balance each month think of the interest your are paying on your purchase. If you don't have cash for it then you can not afford it.
2.) Cutting your Spending
Once you have asked yourself these questions you need to make small changes that can add up to big savings. If you can cut out your eating out and other expenses you will save lots of money every year here are some examples.
Buying coffee 5 days a week at $2.00 a day will cost you $10.00 a week or $520.00 a year
Eating out 2 days a week at $40.00 a week will cost you $2,080 a year
Buying things you don't need at $100 a week will cost you $5,200 a year
Spending a extra $30.00 on your cell phone plan each month will cost you a extra $360 a year
So making small changes can and will add up to bigger savings. If you can cut 1 expense  every week you will be making small changes that will add up to bigger savings.

 

3.) Where to Start

`Do it yourself – Stop paying others to do things you can do yourself. For example, wash your shirts yourself instead of taking them to the dry cleaner.

Eat out less – Commit to cooking more at home. Bringing in your leftovers to work for lunch.

Shop smarter –  Be a smarter shopper! Always create a list of things you need at the grocery store and only buy what is on your list not because you think it is a good deal. Always keep a eye out for coupons, coupons are a great way to save you money. Look for weekly specials at the grocery store. When shopping for clothes and other items make sure to check out second hand stores, even kijiji and ebay.

Use less energy – Spend less on heating and cooling your home. For example, don’t leave lights on when you’re not using them. Use less heat or air conditioning if you’re away from home or sleeping. Unplug appliances when not using them.

Use your car less – Save money on gas by walking more. Use a bicycle or take public transit if it’s cheaper than driving your car. Even look into carpooling to and  from work.

Consider getting rid of your car – You may save money by using taxis or rental cars. Do the math to see if this will work for you. Owning a car you have to consider insurance, gas, matience etc.

Find cheaper alternatives – Rent movies instead of seeing them in the theatre. Pick a holiday spot closer to home. Spend less on your cell phone by getting a cheaper package or talking less.

Pay cash – It may seem easier to use a payment plan that allows you to make small monthly payments. But if there’s interest on those payments, they’ll cost you a lot more over time.

Borrow smarter – You’ll pay a high rate of interest to borrow money on your credit card. Instead, try to get a cheaper loan that will leave you with lower monthly payments overall. Most importantly just don't borrow.

 

So make sure you create a budget, make sure you start spending less then you earn, Stop using credit cards and borrowing money. If you can not afford it by paying cash then you need to stop using your credit cards to pay for your purchases. You will not get ahead in life if you keep paying for things you don't need or think you need.

 

 

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