For many people that struggle to make ends meet, it’s difficult to find ways to get out of debt. After all, if you’re barely getting by then it’s hard to pay down debt and often times that means only paying the minimum, which just isn’t enough.
Making more money is easier said than done, and the real solution requires a look at your lifestyle. Expenses like eating out, drinking, and costly entertainment can quickly add up to a lot of spending every month.
Even by not buying coffee or lunch every day at work could save you close to $10 a day, multiplied by 20 working days gets you an extra $200 every month that could be used towards paying down debt.
That’s just one example, but there are many others where a small behavioural change can have a significant impact on how much you can put away each month. You don’t necessarily have to look for big-ticket items to bring down your expenses (although those would certainly have a big impact), as often times it’s the recurring, smaller dollar purchases that can chip away at your paycheck.
Step one has to be bringing your costs down, rather than trying to earn more. The less you need to get by means the less stressful your life will be if you lose your job or have a significant life event that spikes your need for cashflow.
It may not be a popular idea to cut out the enjoyable things in life, but it takes discipline to pay down debt and accumulate savings. In the long term you’ll be better off and able to live a more enjoyable life in the end.