Living in debt is a common occurrence for millions of people. Debt doesn’t necessarily mean you’re in hot water, as many people take out loans to purchase a house. As one can imagine, buying a house is one of the biggest financial purchases one can make.
So taking out a loan and putting yourself in hundreds of thousands of dollars in debt is expected. But what happens when our lifestyle puts us in debt? No doubt an expensive lifestyle will eventually lead to debt if you’re not careful.
But changing the way you spend your money can become a problem if you’re quite used to it. So that’s why we’re here to tell you about the 5 lifestyle changes that will help you get out of debt. With all that said, let’s start.
One lifestyle change that isn’t difficult to pull off at all is to start saving whenever you can. People are finding all kinds of ways to get smart with their money. Some invest in stocks, Forex, property, etc. The point isn’t to choose a particular way to save money but to do it.
By saving what’s left from your monthly income, you are restraining yourself from spending it on stuff you don’t need. In turn, this saves you from going into debt. The best part about saving is that you can start from a very early age. Considering that Gen Zs aged 18 to 23 are more than $16,000 in debt on average in the US, there is no better time to start saving than to do it early.
Shifting your lifestyle from an early age protects you from excessive and unnecessary spending in the future.
Start A Budget
There are plenty of things you can do on a budget. You can plan for your next vacation on a budget, or upgrade your home security on a budget. But what we use it for the most is to get out of debt.
The easiest way to know just how much money we’re spending, and what on is by starting a budget. A budget can help you easily manage your finances by knowing exactly how much money can and cannot spend. More so, the whole idea of a budget is to help you shift your spending by cutting back on unnecessary spending.
Starting a budget isn’t difficult. All you’ll need is to put up some numbers and do some deducting. You’ll likely want to create a budget where you’ll account for all the necessary stuff your money goes into. This includes bills, food, etc.
On the other side, add the stuff that is considered necessary such as your Netflix subscription. Determine how much money you’re spending on both, and then add your monthly income. This can be your salary and other income.
Do some deducting and you’ll know how much money you have left. Then, look back at the money you’re spending on unnecessary things and figure out if you’re better off cutting back on that.
Stop Eating Out
Yet another lifestyle change that will help you get out of debt much easier is to stop eating out. No doubt doing this is harder for some of you as many social situations are centered around such establishments. But even so, fancy restaurants can be quite an expense.
Thus, instead of eating out five times a week, why not limit yourself to half as much if not less. Another tip related to food is packing your own lunch when at work. Again, quite a lot of coworkers get together and dine out during lunch break.
While it might be difficult to do that when packing your own lunch, it will save you tons of money.
Gym memberships can be quite expensive. More so, buying gym equipment can cost a small fortune nowadays. One way to escape both is to use the outside as your medium of exercising. There are plenty of public or outdoor gyms that are free and accessible to everyone.
If you feel your gym membership is putting a big strain on your finances, then why not substitute it for an outdoor gym? You can also do all kinds of exercises outside. You can run in the nearby park, play basketball, football, soccer, and everything in between.
Bring Coffee To Work
Much like bringing your own lunch to work, making coffee at home costs nothing to what you’re paying at Starbucks. Buying coffee from Starbucks can cost you up to $2,300 a year! That money can be used elsewhere.
So make the necessary lifestyle changes and start getting out of debt.