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Loading ...Spending money really does work as a good therapy. Psychologists have proved that people often shop to relive stress and make themselves feel better. Even if they buy stuff that they don’t really need.
This is the main aspect that you should take a serious look at when setting up your budget. When shopping, buy things that you really really need! Cutting spending is equal to restricting to the most needed. And if you want to get out of the swamp, that plasma TV or Calvin Klein sweater will have to wait.
There are a million (if not more) ways to reduce your monthly expenses. The basic things that can save you big bucks are food, transportation, bills and entertainment. You already should have a list of your monthly spending, now take a look at it and see what you can reduce.
If you owe $20,000 you don’t really need cable TV & cable Internet. Switch to DSL and stop the cable TV! You home phone - call your company and get the cheapest plan that they have. Call your cellphone company - reduce your minutes. Brown bag it! How often do you buy ready food outside? Do it yourself, shop at WalMart, Costco, Western Beef and cook it yourself. Everybody likes bars and to hang out, but if you are in debt, limit it. Instead of going out 2-3 times a week, go out once. Do you really need a car? If you can get normally to work/school sing public transportation, you can save a lot on car insurance and gas, if you take the subway for a year. Cancel newspapers, magazines and other periodicals. You can also read the news on the Internet. For free.
If you have a bunch of stuff that you don’t use - put it on Craigslist. You will be surprised by the fact people buy almost everything. If you are smoking - well you have two good reasons to quit (too expensive and it ruins your health). When shopping, before you go to the store, Google the store name and see if you can find any coupons. There are plenty of them out there and they are free.
And last, but not least - feed the shredder. Yes, you credit cards have to go. You can keep one for emergencies (an emergency is not a sale in Express or a plasma TV in BestBuy) but to the rest of them you have to say “goodbye”. You owe enough, there is no need to increase your debt anymore.
Next issue: Your Creditors
Tags: credit | getting out of debt | debt-free | payday loans | personal loans | student loans | mortgage
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Informative tips on getting 
October 4th, 2007 at 11:09 am
Good article, and as you wrote the best way to be debt free is make budget and cut your cost, I agree.
October 4th, 2007 at 11:13 am
I like this article, it does give me good ways to cut costs. I have read a couple of books on the subject and what they usually suggest makes no sense. I never thought about the Internet or the cell-phone minutes before. Craigslist is the place to sell old stuff that’s for sure. Nice article whne is the next part coming out?
October 4th, 2007 at 12:21 pm
Great article. I have done alot of the suggestions already and starting to see the benefits. I never renewed my cell phone contract, opted for the ATT go phone. I save HUGE there. Plus, now I am in the same network as all my family and friends, so I am only spending $30/mo on my bill as opposed to the $60 plus I was before. I bundled my internet/cable/phone, saving at least $75/mo. Started using coupons and hitting the sales. It can be done, if I can do it, anybody can.
October 4th, 2007 at 8:12 pm
I am glad you like it
The third part is currently work in progress and you will be able to see it tommorow!
August 10th, 2008 at 11:17 am
Good article. The problem is if I am cutting cable and the internet, I am cutting everything else its the only entertainment I have .