Saving money and beating your debts - a guide
If you're thinking of starting a business, one of the first things to do is make sure your
domestic finances are running as smoothly as possible.
Let's break it down into two basic sections: saving money and beating your debts.
Saving money
You've probably seen all kinds of hints & tips all over the web. Here are a few you
might not have thought of…
Swap your talents
What skills do you have? Even skills that you're not planning to turn into a full-time
business could save you money.
Could you give guitar lessons, teach languages, fix PCs…? Rather than charging for
your time and expertise, you could arrange a swap - say fixing a friend's computer in
return for them fixing your sink. After all, saving $50 is just as much use as making
$50.
Get a freezer
How many times have you had to pass by a frozen bulk-buy bargain because you've
nowhere to put all that frozen food? How many times have you ended up calling out
for food because there's 'nothing in the house' (and how many frozen pizzas could you
have bought for the price of one delivery)?
Buying a freezer might seem like a big expense, but it could soon pay for itself.
Ditch the designer labels
Next time your kids ask for a pair of 'designer' sneakers, sit down with them and
draw up a list of what else you could buy (as well!) with the same money if you got
a perfectly good cheaper pair instead. Once they've seen how impressive that list is,
they might see 'designer items' in a new light.
Next, you could apply the same logic to your own shopping habits…
Beating your debts
If you're carrying debts, your monthly payments are a drain on your monthly budget
you'd simply be better off without.
Here's a quick look at clearing your debts more quickly. If you'd like more in-depth
the 'Money guides' link (in the top right-hand corner) particularly useful.
Overpaying your debts
In an ideal world, you'd pay your debts off before they accrue any interest at all. In the
real world, how much extra could you put towards them this month - and the next,
and the next? The more you can 'overpay' every month, the less you'll pay in interest
in the long run, and the sooner you'll be out of debt altogether.
Sticking to it
Overpaying your debts can take some real commitment and dedication, but in the end
it can really pay off.
So - what could you live without for a while? Dining out? Going to the gym? Taking
weekend breaks? Everyone has different expenses, and it's up to you how much you
decide to cut back to free up some more money for your debts.
If you're looking for some help staying motivated, you could try keeping notes so you
can see how much extra progress you're making, and how much you should save in
interest.
Stumble It!
