The year 2017 is almost over. If you have been struggling with debts this year, then it is time to do something to make coming year will worrisome due to unsettled debts. With few the weeks left in 2017, let us devise some ways to reduce debt in the coming 2018. With the rising cost of living in Australia, it is difficult to stretch our budget to make ends meet. However, with careful planning, we can find ways to avoid debts being accumulated every month. Here are 10 simple steps to becoming debt free in 2018.
- Make a practical budget
Creating a monthly budget seems so easy, but it is not. As soon as we receive our salary or wages, we pay the never-ending bills, rent, mortgages, do some shopping and you realize that the money you have gone like a smoke. This is not budgeting. Creating a realistic and practical budget would compel you to take a look at every small detail of your expenditure, and by doing this you will discover opportunities which would allow you to save money.
Budgeting may take a bit of work, especially if you are not used to doing it. It would also take to time to accustom yourself in following a strict budget, but it will worth it when you realize on how much you save after sticking to your budget. It is important to remember, that sticking to your budget is the most important factor in making this work.
- Limit the use of credit cards
Use cash only and if possible close down your credit cards. However, if you are not confident enough in getting by without your credit card just keep one credit card account which you could use in case of emergencies. Keeping two or more account will not help you in achieving your credit card debt reduction plans. Credit cards accumulate interest which ballooned if you’re not paying it on time. To avoid the interests, follow your budget conscientiously and use only cash.
- Lessen your food and entertainment spending
A huge chunk your budget goes to food and entertainment. If you could find a way to lessen your spending on food and entertainment you can have a good deal of savings. You don’t have to starve yourself to save money, as there are many ways you can reduce your family spending on food and entertainment like cooking home-cooked meals instead of eating out. Cutting your consumption of junk foods will not just make your healthy you can save a great of money as well. Bringing packed lunch to work or school is also cost effective not to mention healthy.
As for entertainment, you don’t have to spend a lot to make quality time with your loved ones. Community centers, parks, street fairs can offer many forms of entertainment without putting a hole in your budget.
- Learn to use discount coupons.
Discount coupons range from 5% to 90% discount on your purchase. Imagine paying 10 dollars for a 20 dollar item if you happen to have a 50% discount coupon for that item. You can actually save 25% to 50% of your grocery bill with discount coupons. Make a list of the of the products you commonly buy and track down coupons of those products at newspapers, coupuns.com, magazine, junk mails, grocery stores, drugs stores, mobile apps, and many more.
- Make a plan
There is no magic solution in reducing your debt, you have to work it out and you have to be willing to sacrifice most of the luxuries you are used to. Making a debt reduction plan and making it work is an essential step that you do to make your 2018 debt free.