When it comes to paying down debt, knowing how to budget is an essential part of your financial success.
To accelerate your path to being debt-free, cut back on monthly expenses so you can contribute more to your debt payments.
Some smart cuts here and there will help you reach your money goals even faster. Here are some ways to reduce your essential expenses:
Pack a lunch
Prepare your lunch at home and save yourself some money. If you spend $10 a day on lunch every day at work, that can add up to $200 a month and $2,400 a year. A little preparation can make a big difference to your bottom line.
And while you’re at it, drink your coffee at home in the morning. All those morning coffees could add up to serious savings to pay off your debt.
Cut back on entertainment
Are you really watching every channel in your cable package? Or would you get plenty of use out of a streaming service? Are you reading those monthly magazine subscriptions or are they sitting in an unread pile?
Consider cutting back on your monthly subscriptions to save money.
Shop around for cheaper rates
Are you getting the best rates possible for your cell phone plan? What about your insurance? If you’ve been locked into a rate for a while and just automatically pay your bills every month, you could be missing out on savings.
Call your provider and ask if there are any special offers you could be eligible for. Or shop around for a better plan. You never know, one phone call could save you a ton of money.
Consolidate debt
Trying to pay off several high interest debts at once? Consider consolidating your debt with one low-interest personal loan. Wipe your credit card debt out instantly and focus on putting as much as possible toward paying off your one loan payment.
Want more great financial literacy tips? iCASH, a fast and secure Canadian online personal loan provider, has a host of financial literacy resources available for free on its website.
To learn more about iCASH, a leading Canadian lender, and how you can get instant approval, visit iCASH.ca.