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How to Save Money & Stay Out of Debt

Saving money is becoming a pressing issue, especially for the bread bearers in families which are struggling to stay afloat. Times are hard, and so your spending has to gain strategy in order to survive difficult times without compromising the quality of your lifestyle.

With prices rising, money devaluing and people spending less and less, it creates a difficult predicament. In order to make it through, and most importantly avoid running up huge debts, your spending patterns must change, and it is critical to keep track of where your money is going. Pre-recession this would have been less necessary, but hard times require a harder approach.

In order to save money and avoid running up debts, firstly your outgoings must be less than your incomings. In order to work this out you must become prudent, plan and keep track of your spending, and figure out ways in which you can achieve this by any means necessary (within reason). Here is some advice to help you out:

Remember Why You Want to be Debt Free

This first one is more of a thought to help you through the storm. It is important to stay motivated, focused and determined to save money, and remember why it is you want to be financially stable. Whether this is just so you can live stress free, or have some of the luxuries you can’t go without, this should help you weather storm as best possible and really justify why you have modified your spending habits. If you can picture say a wonderful hot climate, relaxing on the beach with your friends or family, this is an example of a motivation for saving money which should ensure you stick to your plan.


Organise Your Spending and Limit the Unnecessary

Organising your spending is a critical factor for saving money. By doing so, you gain a new perspective on where most of your money is spent, and therefore allow yourself to see which areas you can cut back spending, and also which areas there are potential to spend more in order to enjoy your life. To stay out of debt, your incomings must be greater than your outgoings, so first and foremost you must find a way to get by without being in the negative.

Once you have achieved this, it comes down to how much expendable cash you truly want each month. If this is more, you must reduce more of your spending as and where necessary. Monitor those areas which you dedicate a lot of your money too, and if possible reduce these burdens. By being organised you can live a stress free life which is free of debt, and over a period of time increase the free money you have to spend.

Turn Your Heating down!

This is a very underrated element of saving. Heating bills can be high, and also reduced significantly through very simple measures. By reducing the temperature by as little as 1-3 degrees Celsius on a permanent basis, you will save greatly. By limiting how often you have the heating on all together, this can slash up to half off of your bill.

Ride Your Bicycle

Riding a Bicycle is a great way to stay fit, look after the environment, and most importantly in terms of this article, save money. Running costs for your car are often extortionate, and certainly provide an area to reduce your expense. This can be achieved by cycling instead of driving!

By utilising these very simple tips and incorporating them into your lifestyle, make fantastic savings for long term prosperity.

About Darran Jackson

Darran Jackson is a regular contributor of money saving tips and debt advice. When he is not busy working with the team at DebtConsolidation.com.au he enjoys keeping up-to-date with the latest news from the world of Finance, and the occasional game of FIFA 2014!