How to save money?
I am currently living paycheck to paycheck with a less than desirable salary. I have over $7000 of debt , which I hope to be able to pay it off by end of this year. At times, I get upset thinking where did all my money go and how come I haven't been able to save any money. I help my parents pay for house bills on top of my own bills. Sometimes I feel like such a failure when I compare myself to others my age (30) who are living a comfortable life.
My only way to think positive is by keep reminding myself that once I pay off the debts, despite still paying for utility bills, at least then I will be able to start saving money. Even then might not be a lot, and it would take time, at least I'll see progress.
How do you guys who are in similar situation do it?
- Kt SkycatLv 76 months agoFavorite Answer
One way to do things is to make one or two small changes. Changes such as getting a credit card that rewards you with airline miles or hotel discounts. Yes, it IS very hard to live cheap for so long a time, without anything to show for it, but sometimes small rewards add up. Some people pay small debts with a rewards credit card, then pay off the credit card at the end of each month but collect and save up the airline miles or hotel rewards. t the end of one or two years, they have enough collected airline miles to take a vacation severely discounted. And it is a bit roundabout - instead of paying the debt direct, paying the debt with a credit card and then paying the credit card, but with careful planning and keeping an eye on the monthly credit card balance, the real goal is collecting enough airline miles to pay for a vacation at the end of two years. I know of a family of two parents and six children who paid for an entire week's vacation in Hawaii, and all they had to pay for was food and car rental while they were there - the rest was paid for by airline miles and hotel rewards from 2 credit cards. There was truly no other way they could have afforded such a vacation with straight money savings - the money in the bank would have been spent on fixing the cars or medical bills! By having points saved up and prepared ahead of time, money could be spent on living expenses while points were spent on the vacation -- see how that works? So, while you are paying off your debts and helping your parents, switch to a rewards card and start collecting rewards. At the end of 2 years, you will very much have earned your vacation! The next thing to do is to "roll over" your payments and pay off the debts sooner. Pay off the smaller debts and incur no more. Use the money you paid to the smaller debts and add that money to the larger debts. As you clear out smaller debts you free up money to pay the larger debts, until they are paid off that much sooner. Meanwhile, don't be ashamed to use coupons! Saving a dollar or two here or there may not seem like that much of a difference, but, over time, those little savings are really money you are able to put elsewhere. Put together a weekly budget. Find out how much you spend on average each week, and determine minor cuts. Less alcohol or dining out each week might help? Cutting your "snacks" in half and loosing a few pounds while you are at it? My weekly food and household needs budget is about $200, meaning I have to buy all of our food, clothing (including socks and undergarments) toilet paper, dog and cat food, and house repairs needs within that $200 budget. So I do participate in surveys for 5% off coupons at the supermarket, use coupons for dog and cat food, shampoo and soaps, and money saved from the supermarket means more money can be spent at the thrift store for clothing, shoes, towels, books, and dishes, and even random Christmas presents. I have a list of people who collect things such as football team logos or ice hockey or Star Wars or fishing or chickens or pets, and if I can buy their Christmas present for a few bucks at the thrift store in July, it is far cheaper than trying to buy it at full price in December! And I am not going to lie to you -- it took us 8 years to clear several thousand dollars in credit card debt, and it was really hard some days, but, when the debt was gone and we saved up for a house, it felt very good to have a good credit score (from paying off all those debts on time!), it feels good to live in a house with a mortgage we can afford, and it feels good not to have those debts hanging over us. It was, indeed, really hard some days. But hang in there and keep going. We "made it" through, and you can too, Have the goal of a nice vacation in 2 years to look forward to, and it makes the waiting and the payoff that much more earned! Good luck!
- 6 months ago
I save on water and gas. I take a shower in my office.
- 6 months ago
Do you track your spending? You mention that you do not know where your money goes. If you are not tracking your spending you need to do so. There are online apps you can use to do this. Then you will be able to see where your money goes and what areas you might be overspending. There are many guides online to suggest what percentage of your income should you spend per expense category. You might find this helpful http://www.bigpictureloans.com/blog/easy-how-to-sp...
Stay positive, stay diligent and you'll payoff your debt and be saving in no time. Good luck!
- NONAMELv 76 months ago
last year i had 7,000 in credit card debt...i paid 300 a month but i was still losing money...so i took out a bank loan and paid it off in 1 day...now..my debt is actually going down
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- Anonymous6 months ago
The most effective way we have found, is to keep track of money, and know where it is all going. We have just saved $1000 per year by changing cable and phone settings. Our credit card is paid off, and our access to cash is limited by a fixed amount drawn in cash every week. We are currently "eating down" our food supplies as the dishwasher needs a repair.
We put away quite a lot towards our mortgage while one of us was working, by $5 per week, which paid off the last of the capital when he lost hisjob.
We eat a lot of vegetables and fruit. Our treats are reduced price meat joints, bread rolls and good margerine.
It can be done. Good luck.
- StooLv 76 months ago
Balancing your budget means either spending less or making more. If you're already living a pretty basic life, there's nowhere to cut - so that means look to make more.
It can mean short term debt for long term gain - if you go back to school to train for something that will make you more in the long run, that usually pays off. If you stick yourself at a menial job with minimal pay, you can't work your way up much - some jobs are just going to pay poorly forever, no matter how long you stick at them.
- Anonymous6 months ago
you need to get off the computer and get busy and save money