It's clear from the DebtSmart Survey Results: Cutting Spending vs. More Income that most people believe that cutting spending is the faster way to reduce debt. Of course, this is certainly true to some extent. My position is that there are three main points to be addressed when reducing debt, specifically: (1) Getting organized financially; (2) Becoming more efficient with your current debt and spending; (3) Generating more income.
Here are some suggestions to expand on number (2), specifically as it applies to spending.
1) SHOP ONLINE
If you have to make a large purchase; for example, computer, water heater, etc. ALWAYS check out prices online. Don't be tempted to get it at the local store without taking a look at competing prices.
2) GIFTS
Always stay on the lookout to get future gifts at today's discounts. Half-price or clearance sales run year round. If you see a good sale on say, leather wallets, and there are people on your list who could use one, pick up a few as gifts. High quality gift, low cost. Store the items in a gift-bin, keep track of what's in there, and before you know it, you'll have all the holiday/birthday gifts you need.
3) AUTO REPAIRS
If you need a new part for your car, check out the availability of that part at the local junkyard. I have repaired many vehicles with "pre-owned" parts with great success!
4) LEAKY FAUCET
If you have a leaking hot water faucet, be sure to fix this immediately! It's truly money going down the drain. Not because of the water that's being wasted, but because of the cost to heat that water.
5) BALANCE YOUR ACCOUNTS
Always balance your checking account. This simple, okay, maybe not so simple, exercise is worth your time to ensure that you don't accidentally bounce any checks. Bounced check fees can cost around $35, not to mention potential late fees, etc.
6) CLOTHING NETWORK
If you have young children, then you know how quickly they grow out of their clothes. We always pass our children's clothing to our friends whose kids are just a little younger. We also have friends that give us their kids' clothes. This works so well!
7) INTERNET AUCTIONS
Buy stuff at eBay.com! You can save so much money, it's incredible. I just purchased a cordless phone, with caller ID (hands-free phone), for only $35 with shipping included. This phone would cost $100 at the store!
8) MATINEES
If you want to see a movie, do it during the day. Movies are so expensive! Even the matinee price is getting up there, but it's a big savings! It's also much less crowded.
