Talk to a debt counselor toll free:800-300-9550
Our Clients Rate Us Excellent
Based on 3234 reviewsTrustPilot Reviews
One person stopped the paycheck-to-paycheck cycle when he realized that his money was being spent on a lot of little things over the course of a month. He stopped buying little trinkets because they were just a dollar or a shirt because it was on sale. He eliminated cable TV and switched to a cheaper phone plan. He said he has also gotten better about shopping for groceries. By doing all this he was able to save several hundred dollars a month and used the money to pay off his debts. He was able to buy a car and pay it off three years early. He now makes sure that he has at least $2000 in the bank for unexpected emergencies. He found that one of the best things about paying off his car is that he could then raise the deductible on his insurance to a higher amount, which has also saved him money.
I pay myself first
This is an idea that was popularized by Warren Buffett. The secret according to one commenter is to make savings and investments part of your budget. Know how much you'll invest each month in your 401(k), in paying down your debt and putting in your savings account. Put these funds into their respective categories immediately. If at all possible set it up so that the money is automatically withdrawn from your checking account and deposited into those other accounts. He found that if the money isn't just sitting there all month he's less tempted to spend it on a whim.