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Fund Your Traveling By Making These 7 Simple Lifestyle Changes

Fund Your Traveling By Making These 7 Simple Lifestyle Changes

Have you ever been consumed by wanderlust? No one can blame you for having a strong desire to travel. After all, traveling offers several health benefits and can completely change your life for the better. Of course, while you may love the idea of going away somewhere, most of us just can’t afford it. Or can we?

If you want to travel bad enough, then saving the money for a memorable trip doesn’t need to be that difficult. While there are numerous ways you can save money while traveling, there are also plenty of easy ways you can save up cash ahead of your voyage.

Make these simple life changes, and you will soon build up enough of a fund to make that trip you’ve been dreaming of.

1. Keep track of your spending

This first thing you should do is take a note of all your spending and analyze it. If you’re not giving your expenditures much thought, then it can be far too easy to overspend. Besides taking note of all your bills and direct debits, you should also start noting down your daily spends.

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If you take the time closely look at your spending, you are guaranteed to find something that you are unnecessarily spending money on each month. You may not even realize you were wasting that money on a forgotten direct debit; you would be surprised how often this happens.

You can use apps such Dollarbird, Mint, Goodbudget and Level Money to make keeping track of your outgoings quick and straightforward. Divide your spending up by categories, create budgets, and get a good overview of where your money goes each month. This overview will help you to identify areas where you can save money.

2. Pay by cash

We get it, paying by card is so much more convenient. However, research confirms that people spend more money when they pay by card than when they do by cash.

When paying pay by cash, you can easily see how much you are spending and how much money you have left over. Get yourself organized and schedule withdrawals in advance to help you manage your spending.

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3. Swap meat for veggies

There are plenty of great reasons to become a vegetarian and saving money is one of them. In fact, cutting meat from your diet could end up saving you as much as $750 a year.

You don’t have to go completely without meat, but just swapping a few of your weekly meals for vegetarian options can make a big difference.

4. Eat before you shop

Have you ever gone to the grocery store on an empty stomach and ended up buying way more than you planned to? Not only can this be terrible for you diet, since you tend to reach for junk food, but it can also be bad news for your wallet.

Research has found that shopping when you’re hungry not only makes you buy more food, but it also promotes the acquisition of non-food objects. In a study published in the PNAS, researchers found that hungry shoppers spent as much as 60% more than others. Next time you plan on hitting the shops, make sure you have something to eat first.

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5. Drink homemade coffee

Those daily cups of coffee you buy from your local coffee shop? Bad news – it costs you about $1,100 a year. While you may not be ready to kick the caffeine habit altogether, you can save money by making your coffee at home.

Don’t worry; you can still make delicious coffee at home on a budget using freshly ground coffee and a French Press.

6. Have homemade meals

Just like swapping your morning cup of coffee for the homemade variety, eating breakfast at home and bringing your lunch to work can make a significant impact on your cash flow each month.

It may take some getting used to as you need to plan ahead, but you will get used to the routine. Plus, if you bring all of your own stuff into work every day, you can end up saving anywhere from $2,000 to $4,200 over a year’s time.

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7. Cut cable

Cable bills in America have been on the rise, with the average household spending $64.41 a month or about $768 a year. The thing is, there are many cheaper alternatives available these days that will provide you with enough entertainment options for the entire family. You can try a third-party service such as Netflix, which costs $9.99 a month, Amazon Prime at $99 a year or Hulu Plus, which costs $7.99 a month.

If you prefer to stick to television, but usually only watch the same few channels, you can still lower costs by buying a package of channels. Sling TV does a base package called “The Best of Live TV,” which is $20 a month and includes 19 of the most popular channels. Add-on packs are an extra $5 each per month, so you can tailor it to your family’s needs and still save money.

Featured photo credit: Unsplash via unsplash.com

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Published on January 8, 2021

How To Pay Off Credit Card Debt Fast: 7 Powerful Tips

How To Pay Off Credit Card Debt Fast: 7 Powerful Tips

Ever wondered whether your credit card debt is the reason you’re in a bad financial situation? You can’t enjoy any fun activities because a good chunk of your money goes toward debt payment. Heck, you’re even behind on some of your monthly bills.

The effects of clumsy debt management are too many to list here. This guide is going to help you discover how to pay off credit card debt fast and start chasing your financial goals.

Debt problems are the last thing anyone wants to encounter. But things can get out of hand when all the “little debts” you take accumulate in interests.

What if you knew some simple and proven ways to be debt-free quickly? Implementing them would mean better financial health for you. It becomes possible to free up cash for your “wants.” These include taking a trip or buying something you’ve always desired. All that while paying your bills on time!

Let’s not wait any longer. Here are 7 powerful tips for paying off credit card debt fast:

1. Pay More Than the Minimum Credit Card Payments

Many people only pay the monthly minimum on their credit cards. Truly, that’s the right amount for staying on good terms with your credit card company. But you need a different approach if you’re looking to achieve financial independence within a short time.[1]

Most of your payments go toward interest costs when you only pay the minimum amount. A substantial sum of your balance remains standing. As a result, it becomes more expensive to eliminate your debts.

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You don’t want to wait more than 10 years to get rid of debt while it’s possible to do it sooner. All you have to do is double that $100 minimum payment to $200 or go higher.

The good thing is that minimum credit card payments are affordable in most cases. By paying a higher amount, you reduce your interest costs, lessen your borrowing period, and boost your credit score.

2. Start With High-Interest Credit Card Debt

If you have more than one credit card debt, prioritize putting the extra money toward the ones with the highest interests. This debt pay-off strategy, known as the debt avalanche method, is essential for being debt-free quickly.[2]

First, you need to list down all the credit card debts you have in the order of their interest rates. Next, you choose the one with the highest interest and pay a significant amount toward it each month. It can be an amount twice or even thrice larger than the minimum payment.

At the same time, you make monthly minimum payments on the other debts. Their interest charges won’t be as costly as that of the first debt on your list. You only move on to the next high-interest debt after the first one is gone. Remember that your focus is on the interest rates and not the balances.

3. Revisit Your Budget

Budgeting is useful for tracking your financial moves. Once you create a budget, some tweaks along the way can make it work for you better. One situation that requires you to revisit your budget is when you’re struggling with debts. It might hurt a bit to slash some expenses. But you also don’t want to miss out on achieving financial freedom in the long run.

You can reduce some variable expenses to free up more cash for credit card debt payments. They’re the ones that change from time to time. Some examples are groceries, fuel, and clothing.

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Other opportunities for cutting down your spending lie in non-essential expenses. Instead of dining out all the time, you can cook at home more to save money. You can also share some subscriptions with friends and pay a fraction of the cost.

If you’re determined enough, you can eliminate all your unnecessary expenses and focus on paying off your credit card debt first.

4. Avoid Using Your Credit Cards

Do you want to know how to pay off credit card debt with a low income? One simple way is to stop using them. Having your credit cards everywhere you go means that you’ll be more tempted to buy unnecessary stuff. In this case, you spend money that you don’t really own and get deeper into debt.

The quickest fix to stop the debt build-up is spending with cash. You’ll be more aware of everything you can afford at any particular time. If you decide to keep one or two cards to ease the transition, always make wise choices. For instance, only use them when experiencing financial difficulties.

It’s best to categorize your fun activities under “discretionary spending” in your budget. This way, you won’t need more debt to kill your boredom. By halting your credit debt from accumulating, it’s easy to pay down what you already owe and be happy with the progress.

5. Start a Side Hustle to Boost Your Income

You’re probably turning away a lot of money by not monetizing your skills. Everyone has something that they’re good at doing. And you can use that to generate extra income for attacking your credit card debt.

If you look around your neighborhood, you can find several side hustle opportunities. It can be pet sitting, tutoring, or lawn mowing. You can start an online business by offering services such as digital marketing, content creation, and web development. Such skills go in high demand on freelance sites and job boards.

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Finding clients on social media is also a good strategy to utilize your skills and make more money. Facebook groups, Quora Spaces, and subreddits are some places to look for side jobs. You only have to join a niche-specific platform, share your services, and respond to any opportunities.

It’s possible to learn a skill, practice it, and earn from it. Use the free resources online or purchase some e-courses to get started.

6. Sell Your Used Items for Extra Cash

Starting a side hustle isn’t the only way to generate extra money. You can turn unwanted items into cash for paying off credit card debt. Whether it’s an old TV, book, or furniture, there is always someone itching to buy your used stuff.

A garage sale, as much as it’s old-fashioned, is perfect for getting your neighbors and passers-by to buy from you. You keep all the money because there are no business permits or taxes involved. While you may not make much cash, it’s better than leaving your stuff to go defunct in your storage.

Other than that, you can sell your used stuff on online marketplaces. Facebook groups are great places to start if you want quick approvals and hence sales. You only have to ensure that your listing follows Facebook’s commerce policies.

When selling any pre-owned items online, ensure they’re in good shape to avoid problems with your buyers.

7. Know When to Seek Help With Your Debt

Asking for help with your credit card debt can be challenging to do. But letting it drown you is a road you don’t want to take. While you may feel embarrassed at first, it’s the best way to get back on track when you run out of options.

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There are tons of non-profit credit counseling organizations that can offer you free guidance on how to escape the debt trap. An example is The National Foundation for Credit Counseling. They simply review your finances and help you determine the source of your financial problems. After that, they match you with an actionable debt management solution.[3]

In extreme cases, the debt solution can be:

  • Debt relief – where your debt is partially or wholly forgiven
  • Debt consolidation – taking out one loan to repay others
  • Debt settlement – the creditor forgives a significant portion of your debt
  • Bankruptcy – legal process for seeking relief from some or all your debts

It’s necessary to carefully weigh your options before deciding on the way to go. Find out how it might affect your credit score and any other risks.

Wrapping It Up

Debt is a major setback when you’re trying to prosper in life. Paying off credit card debt is essential if you want to reach your financial goals. That means having more free income, a good credit card score, and even a chance to retire early. You become more productive each day because of the peace in your mind.

So, you now have some tips on how to pay off credit fast. Go ahead and get rid of that good life progress killer!

More Tips on How to Pay Off Debt

Featured photo credit: rupixen.com via unsplash.com

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