Debt Dunk

One key point I have spoken of before and I am a big proponent of is doing a budget. When you do a budget, your eyes become wide open on how much money you really have. Sometimes this is good news and other times it is not. For most though, it is like finding money you never knew you had.

There are many ways to find money that you thought you didn’t have. First, take a look at what you are spending your money on. Eating at restaurants and fast food places can be one of the biggest expenses in many budgets. I would like to say I never eat out but that would be a lie. There are ways to cheapen the bill though. Buying a soda or other beverage now can cost up from $1.25 to $3.00. This is not good for your budget or your waistline. Ask for ice water and you could save $5-$15 a week on average. That adds up to between $260 and $780 a year. Not a bad little find is it?

What about desert? Do you eat desert at most meals out? They can range from $1.25 up to $6 or more. Some deserts cost as much as the meal. Say you only have desert out three times a week. That is between $195 and $936 a year. Now that is nothing to sneeze at. try to eliminate the deserts or splitting with a partner and you could see you waist line shrink and your wallet grow. These are just a couple of examples that you can save from eating out. There are so many that you could find that will help you find money.

Alright, maybe you are more disciplined than I am. Maybe you do not eat out at all or very rarely. Let’s take a look at other ways to save. How many of you still pay your bills by mailing a check each month? If you only send out seven bills a month, you overspend by $30.24 a year plus the extra costs for buying checks. If you pay bills online, it is easier, cheaper, and you can pay instantly. Better yet, automate the ones you can and save more time and leave no chance of forgetting a bill.

So are you seeing a trend in how the small things add up? Look at your utility bills and cable bills. Can you cut out extra features you don’t need? The phone company is one who loves to add the extra charges. Make sure you are not paying for features or services you do not need. Do you have HBO or Showtime? How often do you really watch them? If you do not use, ditch them and save $100 or more a year. Does your cable or satellite company offer smaller packages? Sometimes they also offer discounts for loyal customers. It does not hurt to ask.

When trying to become debt free, you need to reevaluate everything in your life and see of it can be cut, eliminated, or reduced. Baby steps in reducing your expenses can be like finding money you never knew you had. Be a pauper now and you will live like a king later.