3 Tips to Pay off Debt & Still Have Money at the End of the Month

3 Tips to Pay off Debt & Still Have Money at the End of the Month
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Paying off debt can often seem like an impossible task for many of us who are struggling with a whole lot of it. In fact, those in debt are typically therefore also more likely to have bad credit, and less freedoms when it comes to accessing future credit and loans.

Taking this financial burden even one step further, those with debt may also struggle when it comes to being able to actually be able to save any money. Those with high levels of debt may also be just as likely to believe they have to focus on paying off debt – and as a result won’t have enough money to carry over at the end of each month.

While it is true that individuals can take steps to find a balance between paying off debt and also also extending their income into the beginning of the next month – as well as even banking some of it in a savings account or other type of financial fund, this will require some planning as well as a certain level of diligence in order to achieve.

If you find yourself in a similar position, to help with your planning, here are 3 tips to assist you in paying off debt, while still having money at month’s end too.

3 Tips to Pay off Debt and Still Have Money at the End of the Month:


1) Be Realistic
First and foremost you want to be realistic about your expenses. More specifically, taking a good hard look at how many expenses you have each month. This first step is an important one as it will likely be an underlying reason why you are paying off debts, yet do not have any money left at the end of the month. Therefore, perhaps you need to look at lowering your monthly expenses.

While lessening your expenses can certainly be a challenge, it is however likely that you can find some areas of your expenses that you can reduce or cut out altogether. For example, can you reduce your cell phone/internet/cable tv packages? Can you find methods of lowering your monthly utilities costs? Can you spend less each month of food, gas, and other items that you do need, yet can purchase for less somewhere else? Each of these questions as well as others you may come to on your own, can help as you identify how you can reduce the total amount you spend each month.

Budgeting can also certainly help you achieve this balance between paying off debts and saving, ultimately by setting new goals for how much you are able to spend on various monthly expenses. The trick here is to be realistic and not to continue to spend more than you can afford. If you want to have a few hundred dollars at the end of each month to tie you over to the following month, then first budgeting and then lowering your total expenses will be an important method of achieving this desired goal.


2) Minimize Your Spending
Secondly, another trick to being able to have some money left over at the end of the month, is to minimize your spending early on in the month. Often times we get paid and then get excited that we have all this money to spend. Unfortunately this attitude can lead to overspending and draining our funds far too quickly and impulsively. If you are continually finding yourself in the position, instead why not try pacing yourself and only allowing yourself to spend a certain portion of this money each day, each week.

If you know, for example that you owe a certain percentage of your early monthly income towards certain debts, then try reducing your spending in other areas during this period of time. By limiting your spending on other items, especially items you may consider luxury or non-essentials, you can make your money last further into the month. Then by month’s end, you may be surprised at how much you have been able to save. Again a balance can be found between paying debts and saving some money to carry with you into the next month.



3) Save Some Money Each Month


A final tip for also having money left at the end of the month is to place it aside into a separate savings account. While the money you may have from the first two methods may still exist, it may still have remained in your personal checking account. Since this account is typically used a lot more, in terms of taking out money on a daily basis – it also means it isn’t as protected as it could be.

Instead, try transferring a portion of your income into a savings account early on in the month. To make this an even easily process, you can set up an automatic transfer that sends a designated amount to your savings account on the same day each month.

For example, if you think you can realistically save $25.00 each month on top of still being able to pay off your debt, then this amount will be transferred directly from your checking to your savings account, let’s say on the 11th of every month, without you having to even lift a finger. Who know’s maybe this money will come in handy for future emergencies or to help you pay off other loans, or even that flight to Paris you’ve always wanted to take. Either way, the you will ensure you have some additional money set aside for the future – or even the next month or two.

All in all, these tips can help you save some money, as well as pay off your debts. Regardless of your use for this income, there is something to be said for being able to effectively pay off your debts and still have money at the end of each month and this is a goal that is likely to provide you with a much greater peace of mind.





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