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10 Money-Saving Tips That Most People Often Forget

10 Money-Saving Tips That Most People Often Forget

Growing up, many of us were instructed on the values of saving money and being responsible consumers. Even the best of us, however, tend to forget some of the best ways to exercise excellent frugality, and our bank accounts end up suffering for it.

Below are just a few money-saving tips to keep in mind before you head to the checkout counter. As you read, you may notice that you knew some of these tips already but just forgot about them.

1. Buy used items.

We remember to buy used items with some purchases, like cars and video games. But we usually forget to shop for used items when looking for clothes, electronics, or even furniture. Obviously, this doesn’t apply to perishable items, but utilizing websites such as Craigslist and social media platforms can lead to huge savings for you.

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One of my favorite past times is visiting thrift shops on weekends (even before the song came out) and gauging the prices. When I’m in need of something later on, I know (roughly) how much it’s going for at discount stores.

2. Wait a day before you make a purchase.

This is crucial for big purchases. Impulse buying is a major contribution to why our bank accounts aren’t where they should be, so If you really want to buy something, wait a day or longer and see how you feel then. Chances are that you’ll be less tempted to make the purchase, unless it is something you really need.

3. Buy in bulk.

The guideline for this is simple: if it’s something you know you’ll be using, like toiletries or food items, then save yourself some money by purchasing in bulk. Toilet paper, tissues, toothpaste, and other essential items are great for bulk because you’ll be saving money in the long run without buying things you’ll never use.

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4. Treat yourself once in a while.

The psychology of impulse buying and over-spending is quite complex and interesting, but a lot of it can be curbed by positive reinforcement. Rewarding yourself, sparingly, is a great method for maintaining control of your finances without going overboard. Set rules for yourself, but don’t be afraid to give yourself a break when appropriate.

5. Shop around.

This is a given for some people, but you may be the type of person who falls in love with the first option they see for a purchase. Exercise some financial discipline and visit other stores (or even online) to compare prices and features. You may find that what you were about to drop significant funds for can be found way cheaper, or better, somewhere else.

6. Use cash.

Credit cards, while gloriously convenient, can be exceptionally deceitful. We tend to use them flippantly, not considering the impact they’re really having on our personal finances. If you use cash, however, your subconscious is more likely to feel the pain from losing that money, resulting in a more conscious effort to curb your spending.

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For big purchases, you might find it worthwhile to use money orders for that same reason, and that will help establish a mentality of preparing your finances before making big decisions.

7. Borrow (or buy) from your friends.

Ask around! Friends are a great resource for borrowing essential items such as furniture, kitchen accessories, and more. You may also get a great deal if you buy from your friends, seeing as they’re motivated to help you while also getting a form of compensation, and they may even offer some items for free that they don’t need. Just remember to return the favor.

8. Cook instead of eating out.

We forget this when we opt out of planning our meals. Organize your week by determining when you’ll have time to prepare a meal and stick to it. You can then purchase your groceries for that meal and save a ton of money.

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If time isn’t on your side, try cooking a lot of food on a day with more free-time. You can use this food for dinners and lunches, as long as you freeze what you’ve cooked.

9. Watch Matinees.

Sure, we typically reserve theater visits for weekend dates, but you should also consider watching the matinee in order to save some money, especially if you watch movies every weekend. In some theaters, tickets can actually be up to $5 cheaper for the matinee. For families, that means you’re potentially saving $20 per visit just by watching the same movie a little earlier.

10. Unplug electronics when you’re not using them.

This is a great tip for saving money on your electric bill, especially during winter. Remember that certain electronics can take up a lot of energy, even when they’re turned off. While you’re sleeping and/or at work, make it a habit to unplug the nonessentials, which include kitchen appliances, televisions, and video game consoles. The money you’re saving over the course of just one year can be a staggering amount.

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Jon Negroni

An author and blogger who shares about lifestyle advice

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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

Reference

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