How To Become Debt Free On A Low Income- Let Us Help You!
Try to terminate all non-essential expenses
The first and most important step to pay off your debts and save money is thoroughly examining your day to day expenditures. You have to make sure that you do not waste your money on unwanted things.
The most common wastage of money is automatic debit expenses that withdraw from your bank account and you forgot about them like a magazine subscription or unnecessary gym membership.
The best way to handle such expenses is to take a look at your bank statement and highlight all the costs that you do not need anymore. In this way, you can save money without much effort.
Calculate how much money you owe
A great way is to create a separate spreadsheet or list on paper of your all debts. Calculate all your debts and get a total of how much money you are throwing at your debts each month.
Setup a new fresh budget
Create a new fresh budget and do not mention your eliminated expenses. If the total of your new budget is greater than your current income, you have an income issue but if you have extra money left after your debts and expenses, this is great news for you!
Decide a small percentage for your saving
This is a great way to save money even on debts. You should decide what best percentage of your income you want to pay your debts and what percentage is set for your savings.
For example: if you have left the amount of $100, you may decide to save 5% for your saving and other 95% for your debts sentiment. We know that 5% is not much, but you can learn the art of how to save money!
Wrapping Things Up
We know that it may take few months or years to settle up your financial situation, but if you effectively follow up this plan, you can automatically reach your goal of money-saving even on debts. Now, go and work on this plan and if you pay your all debts and save money, please come back and share your views with us at Paydaymart.ca!