Glen Forsyth
16 August 2020
Many people slip easily into debt. They often find getting out of debt a lot more difficult. In the last decade or so credit was freely available. It had never been quite so easy to gain access to large amounts of money. I share some simple money saving tips below, to help you get out of debt and start saving for unexpected costs.
People who had never previously had problems in this area took out large loans. When the financial crash happened they then found themselves in real difficulties. Many of those people may now be wondering if they will ever be free of worry again.
Financial worries are the biggest cause of relationship breakdown. They also create stress which can lead to difficulties with mental health. All this can be avoided though if the problem is faced squarely. They do not got away of its own accord.
Starting to repay all of your debts is very important. This has to be something that can be met and sustained as time goes by. If the payment goals are too ambitious they may not be achievable. This can then lead to people giving up and slipping back into old habits. It’s only through self-discipline that this can be avoided.
Your usual spending habits need to be reviewed and tracked, to find things to avoid or save on. It’s often the $5-$10 daily spending here and there that adds up, not the $1,000 purchase once a year.
Regular spending needs focus. If there is anything which is a luxury that cannot realistically be afforded then that should be cut out from the budget immediately. If a person has expensive interests they should explore taking up new activities that cost less. Regular unavoidable outgoings should be examined. It may be possible to save substantial amounts through switching suppliers of utilities.
Getting out of debt is not an easy task however it is achievable. It also gives a person satisfaction and a sense of control. A life that felt badly off balance no longer does so. This can in the long term help a person achieve a new approach to life based on a strong sense of reality and personal responsibility.
Getting out of debt should not be viewed as the impossible dream because anyone with a plan and commitment to financial freedom can get out of debt. The first step towards financial freedom is developing a financial freedom mindset. Spend time thinking about how great it will feel to be completely deficit free rather than worrying about paying next month’s minimum credit card payment.
It is a good idea to pay off deficits before starting an investment plan because deficits limit the amount of money that can be invested. Make paying off financial obligations the primary goal and then use money to invest once all deficits are eliminated. One of the most important steps, which many people ignore, is to first build an emergency savings fund.
Start by saving approximately a grand and put this money into an “emergency funds” account, to be used to pay for sudden health costs or automotive repairs so that the credit card is not the only source of emergency funds. Now, start by paying out your smallest debts first, then moving to larger and larger. Make sure if you have a partner, that as a couple you agree on this approach. This can really help give you motivation, as you see each debt get crossed out over time, and you realise you can pay off these debts that have been seemingly strangling your finances until now.
As I stated, you should pay off the smallest debt first by paying more than the minimum payment, however you also need to pay the minimum payments on all other deficits. Once the first debt is paid off start in on the next lowest and once that is paid off pay off the next lowest until all credit card deficits are paid off. Paying off deficits builds confidence and momentum which is opposite of what comes from a deficit mindset which is diffidence and stagnation.
After credit card debt and automotive debt is erased it is time to pay off the mortgage. Most people cannot contemplate the idea of paying off a thirty year mortgage because they see the loan as, what is called, a thirty year mortgage. However the truth is one need not take thirty years to pay off a thirty year loan.
Once all credit cards, vehicle loans, and all other debts have been paid off it is time to invest.
Save at least fifteen percent, preferably twenty percent of your annual household budget and let the money grow.
Getting out of debt need not be an impossible task however it takes commitment and a detailed plan to eliminate deficits and financial obligations. Start by creating an emergency cash funds to be used in case of credit cards when an appliance or vehicle needs repair. Then start to pay off the lowest credit card balance and then move onto paying off the home mortgage. These simple money saving tips quickly become a habit for the long term.
This is a question more and more home owners are asking themselves, and it’s hardly surprising really, considering that the recent economic situation has left so many families struggling to make ends meet. To make matters worse, electricity bills are forever going up. Of course, even though everybody would like to have cheaper electricity, many are also turning to solar power for environmental reasons.
With that said; the vast majority of home owners who have solar power systems installed do so primarily because they want to reduce electricity bill costs, and enjoy cheaper electricity on an ongoing basis. One very common misconception regarding solar power is that it’s extremely costly. While this certainly was the case in the past, it’s not exactly true nowadays. Admittedly, installing solar power in your home does require an initial investment, however then again, there are several approaches one can take in order to minimise the costs.
The typical option would be to get a specialist company in to do the installation. Naturally, having a substantial system professionally installed will immediately result in cheaper electricity, or perhaps even totally free electricity, and at some point in the future, your system will have paid for itself.
Another option would be to build up your solar power system over a period of time. In other words, you could simply add additional solar panels as and when your finances allow for it. Even with only one or two panels on your roof, you’ll already start to benefit from having cheaper electricity.
Apart from the savings you’ll enjoy, seeing you your monthly bills come down is usually all the motivation one needs to add more panels to the system.
Solar power is a very real solution, not only for saving money, however also in terms of protecting the environment. It’s both simple money saving tips and earth saving ideas!
With the current economic climate, it seems everyone is looking at how to save electricity and thankfully there are so many ways to do it!
It is important to learn how to save electricity for a number of reasons. It is not only a concern for our planet, however also a serious worry for our wallets! Unfortunately, many of us are unsure about how to save electricity. Besides simply looking for cheaper electricity, we should also try to remember that our electricity usage can have an impact on the world at large.
Many of us know the usual advice given on how to save electricity. We are told always to turn lights off when we leave a room, to turn off appliances when they’re not being used, and to not leave the water running when we brush our teeth. Although this information is common place, it is there for a reason. We’ve all heard these tips before because they are important. However, there are ways to get cheaper electricity bills than simply following the rule of turning off appliances.
We all have so many appliances in our houses these days. Whether it’s a fridge, a television, an air conditioner or your computer, it’s often hard to know how to save electricity efficiently. With so many electrical items running at any one time, it’s next to impossible to find a way to reduce your monthly use of electricity noticeably. Doing all the small things can make some difference, however mostly they are just rules that often go unnoticed. They may seem too vague to actually seem like effective simple money saving tips.
The internet and books on eco-friendly living can and do help. However, all too often the advice they give is too general to be applied in an effective and meaningful way in your home. What would be better than having a tailor-made guide on how to save electricity, made especially for your home? What you could do is opt for a home energy audit.
Another of our simple money saving tips, it for a home energy audit can help you find ways to greatly reduce and sometimes even remove electrical drains on your home, in a way that is directly suited to your home and what’s in it. How exactly does a home energy audit work, you ask? Well, it is simply the work of an expert, or team of experts, to determine precisely how and where your home is using electricity. This will help to identify the most efficient ways for you to reduce the carbon footprint of your home, specifically.
