As the old adage goes, an ounce of prevention is worth a pound of cure – and it’s definitely true when it comes to getting out of debt. The best way to get out of debt is to ensure you don’t get in it in the first place, but there are practical ways to save money and reduce debt even if you’re already “in the red.”
Sure, skipping your daily or weekly latte is a great way to cut back on unnecessary expenses, but there’s much more to it than that. We really love this quote, from U.S. News & World Report: Saving money is like a magic show: a sleight of hand (subbing chicken for steak), a vanishing act (eliminating your landline), and materializing an object out of thin air (finding free college money).
So what else can you put into your “bag of tricks” to save more and spend less? Use these tips from the article “Smart Money-Saving Tips You Need Now” to improve your personal financial health:
Food: Cooking for yourself can be fast and easy, as well as surprisingly cheap. Try online recipe finders for meals that use what you already have in your fridge. Make enough for a few days, and then use the leftovers in sandwiches for work the rest of the week. Eating at your desk could save you more than $100 a month.
One of USOBA’s favorite sites for creating fun at-home meals is SuperCook.com, where you can input ingredients – whatever you have at home – and receive recipes that fit what’s in your cabinets, so you don’t have to spend money on additional groceries.
Transportation: If going to the gas station makes you cringe, make sure your car is in top shape with a tune-up. Fixing any serious maintenance problems can improve your gas mileage by as much as 40 percent. Becoming a better driver can help you save money, too. Smooth braking and acceleration, as well as slower driving, will improve your mileage and keep money in your wallet.
Additionally, USOBA recommends these top ten tips for improving your vehicle’s fuel efficiency from Edmunds.com.
Energy: You’ll feel better about your monthly utility bills, and also the environment, when you take small steps to cut your energy use. Start by replacing your incandescent light bulbs with compact fluorescent lights. Though CFLs cost more at the store, they don’t need to be replaced as frequently and can save your household hundreds of dollars over their life spans.
Budgeting: It pays to educate yourself so that you can make informed decisions about budgeting, investing, and other aspects of your finances. Simple steps like automating your bill payments can help you avoid late fees and damage to your credit score. Ken McDonnell, director of the American Savings Education Council, recommends that you start by cataloging every expense you incur in an average week to learn exactly where your money goes. The results may surprise you.
Entertainment: And even though saving money is serious stuff, you can still have fun on a tight budget. Try renting movies and cozying up on the couch with friends or loved ones, and get inexpensive, designer-like clothing worth bragging about. When traveling, picnic lunches can be fun and tasty, and if your sense of adventure dictates a vacation abroad, look a little farther afield, to where the dollar is doing better.
