The best way to save money is to tell your money what to do. Having a large amount of debt can dictate what you spend each month. The first step to financial freedom is to reduce your debt! Learn how get started reducing your debt today using the following tips from our expert guest blogger:
Calculate, Research and Take Action!
First off you need to determine what your monthly budget actually is. The best way of doing this is to look at your monthly bank statements and work out the difference between your income and expenses. Some individuals will actually find that their expenses are more than their income, which can only lead to disaster!
Once you know what’s coming in and going out, it’s time to see where you can save. Start with the biggest bills, such as your mortgage, car insurance, loans, credit cards & electric bills. Then head on over to price comparison sites to see what you can save. Can you consolidate your debt into a cheaper deal and reduce your expenses? Can you reduce your car insurance by getting a cheaper quote? Make sure you pay by direct debit if you can’t pay the entire year in one shot, as this is the cheapest method of payment and you usually get rewarded by doing so. Can you switch your credit cards onto an interest free offer potentially saving you hundreds each month?
Could you save money by cancelling any of the services you pay for like cable, cell phone (or home phone), or any other monthly membership fees?
When it comes to re-financing your mortgage, I would recommend seeking advice from a financial adviser as they can talk you through all of your options.
All in all, be very prudent and take your time researching the best deals.
If you are charging more money on your credit cards each month than you’re able to pay back, you may want to consider cutting the cards up and focus on paying down your balance. Free yourself from debt by learning to make your money work for you. Create a budget and stick to it!