The Money Diet

When you want to shed pounds, you put yourself on a diet.  Similarly, when you have to shed extra fat from your budget, you get on a money diet.

If you want to make your money go further, you need to trim the fat from your budget.  Finding free grocery coupons is an easy way to save money each month.  Unless we are willing to significantly change our spending habits, there will be no reduction in the average $7,000 of debt carried by American households.

The first step is to prioritize your expenses and determine which of them are essential.  You should budget for necessities such as food, house or apartment payments, utility charges, as well as credit card payments.  Try to pay a little more on your credit cards with the highest interest rates, however, if you can only pay the minimum to the cards with lower rates, then do that.

You must sit down immediately and figure out what’s the “fat” in your budget.  If you cannot pay off each month what you owe, then in reality, any non-necessity item is “fat”.  An example of “fat” would be gas-consuming vehicles like low mileage cars, boats, and RVs. Search out expenses to cut out or reduce anywhere you can.

If your money is being spent on video game consoles and online games, then it’s best to unplug the machines and spend time in the real world. If the salon you’ve been using is at the high end, then find one that doesn’t cost so much — at least until you’ve paid down what you owe.

When dieting, you substitute unhealthy foods like fried chicken for healthier alternatives like grilled chicken. Once you are on a money diet, you must search out less costly options for all of the luxuries of life. Generic grocery store brands are a cheaper alternative to brand names and designer clothing can be found at bargain prices in consignment stores.  And is it really necessary to have all of your clothes dry cleaned?

Decrease your costly designer coffee habit.  Skip the brand names at the grocery store and buy generics instead. Rather than movies at night, go for the cheaper matinees.  Cable Television, especially pay-per-view, is an expensive luxury that you can do without. Attend the museum for their free events.

Don’t forget, that creating a better consumer lifestyle takes work.  Habits stick with you long after the original reason for starting them has gone, and healthy money habits are no exception; even when you are out of debt, your good habits will remain.