10 Money Saving Tips for Debt Elimination

Many people today are following a debt elimination plan of some sort, or are seriously looking into it. The wakeup call will be different for everyone, but for me it was having to make a choice between paying my creditors, or using a credit card to buy groceries for my family. That is a very unbalanced and sad financial state to be in.

The following money saving tips are mandatory if you’re broke and looking for additional money above and beyond bills to accomplish credit card debt elimination.

1. Clothing – Women especially spend ridiculous amounts of money on clothes, shoes and jewelry. A pair of jeans for $180 is just plain crazy – think about it. Chances are you have enough clothes to last for years to come ( I know I do), so this is an area you can give up completely until you are debt free. If this isn’t the case, then at least budget a reasonable amount for items that are actually needed, and not just because you MUST have it.

2. Cigarettes and Alcohol – If you are a smoker, I sympathize. I used to smoke a pack and a half a day until I gave it up and saved a ton of money. Smoking is a nasty and expensive habit that will keep you in debt a lot longer if you’re really broke. Alcohol? Ditto. If you find that you simply cannot give up either one, then you have bigger problems than debt.

3. Entertainment – Going to the movies or taking your family to theme parks and zoos would be examples of this category. Think of how much you could save if these activities were put aside for just a few years. You could budget in a movie (and pay cash) once every couple of months and it would become something to really look forward to as opposed to a minor outing.

4. Land Line Phone – Getting rid of the land line will save you a little money if you already have a cell phone as well. The only reason really to keep it would be for 911 calls as they can track your exact location without you having to tell them. Depending on your situation, this may be a necessary expense. It’s something to consider at least. (Examine your cell phone bill for even more money saving tips. Are there options you can do without?)

5. Gym Memberships – This is a luxury expense and can be cut until you’re out of debt. Walking, riding a bike, swimming or exercise DVD’s do a great job of replacing time in the gym. If you already own a game console such as the Wii, there are plenty of excellent interactive exercise programs you can use effectively.

6. Cable TV – This area of entertainment is changing. More and more folks are dropping this option completely and watching movies and television shows via streaming video instead. Once you have the necessary equipment, it is much cheaper than traditional cable. If you’re not ready to do this, consider cutting the 400 channels you currently pay for down to 100. Chances are you won’t miss the other 300.

7. Grocery Shopping – This is an easy category to overspend on. It’s important to take a half hour or so and plan meals for the following week. Make a specific list and then stick to it. If something not on the list catches your eye, consider if you will really use it or not. I know that since I started practicing this, my own kitchen cabinets contain only products that I actually use for the most part.

8. Eating Out – This ties into planning for meals and sensible grocery shopping. You could budget for dinner out a couple times a month and cook at home the rest of the time. Meal money saving tips can be found all over the internet.

9. Go to the Library – This was tough for me to do. Giving up going to the bookstore and buying my reading material was something I really enjoyed. However, I am an avid reader and was spending far too much in this area, so going to the library instead was essential.

10. Gifts – I have Christmas in mind for this category. I paid for presents with credit cards for many years because I didn’t have the extra cash at hand. Now, I budget for Christmas and birthdays by putting a little in savings every month. The cash is there and ready to go when needed.

These money saving tips are only a few ideas for you to research in your own financial situation. As you work with a budget over the months, you’ll be sure to find other ways to save as well.