Free Tips on Eliminating Debt

WANTS via NEEDS

Filed under: Debt — Sabine @ 6:30 am

WANTS via NEEDS

Every person who enjoys a good afternoon of shopping knows well the tension that exists between the things we want versus the things we need. In our materialistic society, it can be very difficult to reconcile this tension. Often we convince ourselves that the things we want are the things we need. Most of us (especially those of us deep in debt) are very good at rationalizing our purchases. Here are some tips to help you overcome the urge to buy the things we want, rather than those we need.

What the wants vs. needs battle does to your budget

Buying what we want (or convincing ourselves that what we want is the same as what we need) can be dangerous to our budgets. If you find yourself in debt, there is a very good chance that you have been in a losing battle against your better judgment. But it is never too late to turn the battle around. When it comes to overspending, most of the time it has to do with overindulging. Before you can turn this battle around, you have to convince yourself of one basic truth: all you need is a roof over your head, clothes on your back and food on your plate. You don’t need a particularly fancy roof, expensive clothes or gourmet food. You just need to sustain yourself, and sustaining yourself means treating your hard-earned finances with respect.

Make a shopping list and stick to it

Here is one of the easiest and time-tested ways to buy what you need, and not what you want: make a shopping list every time you go out. Not just when you go grocery shopping, but every time you leave the door and head towards the store. Eliminate the concept of “browsing.” Browsing can easily lead to overspending. Every time you head to the store, make a specific shopping goal. For example, if you’re going back to school shopping tell yourself: “I need to buy a new notebook, pens, a new sweater and two new pairs of pants.” Be very specific and carry a list. Having your needs right there in front of you, in black and white, can be a powerful reminder of why you are at the store.

Ask yourself: Can it wait?

Buying only what you need all the time can be difficult and demoralizing. While you are at your favorite store and shopping for the essentials, you are bound to come across something beautiful that you love and want but probably don’t need, at least not right away. Instead of bemoaning your budget, ask yourself a simple question: can it wait? In most cases, it probably can, and you can even come back for the special purchase when your finances are (more) in order.

Watch who you run with

This can be difficult realization to make, but it is essential if you find yourself overspending. Do you have friends or family members who overindulge or overspend? Maybe they can afford such spending behavior (or maybe they can’t), but if you know you can’t, it’s time to take a break from these acquaintances. Constantly eating out, vacationing or going shopping with these friends is bound to do a number on your financial ledger. If you love your friends, but not their financial behavior, resolve to join in low-cost activities. Invite your friends over for a home-cooked dinner, picnic or to the art museum during free admission day. Be honest with your friends if they question your behavior. True friendship can overcome these spending differences.

Create your own mad money jar

Of course, always scrimping and saving is no fun. Do yourself a favor and create your own private money stash. Sock away stray dollar bills into a mad money jar and forget about it. Six months from the date of starting your jar, use the money for special purchase-something you want but don’t particularly need

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Shiny new is overrated

Filed under: Debt — Sabine @ 11:22 pm

Money saving is never easy. Most American’s simply don’t do it. Yet, saving money is crucial sometimes. It’s a lot better than using credit. How often do you see a commercial that says, “Save up for six months and buy this new couch set!” America wants instant gratification. Unfortunately, that can cause us to get into debt that we can’t climb out of. Instead of debt, try saving. Let’s say your short term goal is to buy a boat-you have a few options. One option is to borrow the money from a lender. Another option is to charge it on a credit card, and the final option is to save for a few months and buy it with your own money. All three ways will give you that boat. Some of those options are not the wisest. If you use a lender and are late with one payment, they can put on a 99% interest. If you use a credit card, you have interest and more debt. If you save, you’re fine. But, how do you save?
Here are some very practical ideas. First of all, don’t go out to eat. If you do, get water and share a dish with someone. If you calculated the amount of money you spend on dining out in one month-you will most likely be surprised. Save that money, your short term goal is worth it. Another way to save is to cut out some extra spending. Instead of going to see a movie, rent one and stay home with some popcorn. Instead of buying an entire CD, buy the track and save that money. Another way to save some money is to buy bulk. This is especially effective for large families.
Sometimes it’s hard to save up by cutting things out of your life. This is understandable, not everyone can afford to go out to eat as much as others. Not everyone can afford nights out at the movies. In this situation, take your checks and put ten percent away in a savings account right away. Do this for as long as you need. Just act like you are literally making ten percent less until you reach your short term goal. These are just a few ways you can save for short term goals. Some will say that if you need extra help financially, there are trained professionals just a call away for advice. Remember that debt is never a wise choice to make if at all possible, because of interest and other things.
When doing your research, consider the following: Look into these programs: door-to-door, fee-per-ride, ride-share, carpools, and private shuttle services. Some services require advanced notice or reservations. Use services that are no or low cost to seniors.
Use pay as you go or monthly coupons. Use public or private transportation (taxi, mini-bus or van, bus, rail).
If you’d like to keep your vehicle, it might be a great idea to fill in the gaps for when ride services are not available. You might find that you can have greater control over the cost of fuel by maintaining your own vehicle and using ride services.
If you decide to keep your vehicle, be sure to look into lower discounted insurance rates for mature individuals. Also, if you find that you are moving slower when walking, ask your medical professional about assisting you with obtaining a handicap sticker, tag or license plate for your vehicle. Here’s a suggestion, even if you decide to get a handicap license plate, also ask for a handicap tag. That way you can display it when traveling in a vehicle driven by someone else. Check with your local Area Agency on Aging (AAA) for information specific to your area.

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