Are you determined to get out of debt this year? If you’re wondering where to start, cutting unnecessary expenses is the first step to success. Here’s a list of ten practical ways to trim your budget and free up cash for tackling debt, and get your debt snowball rolling.
Paying off debt isn’t always easy, but it’s worth it to regain control of your finances. By lowering your expenses, you can maximize the money you put toward your smallest debt and start building momentum. The Debt Snowball method, popularized by Dave Ramsey, is a powerful strategy to pay off debt quickly. You list all your debts from smallest to largest, focus on paying the minimum on everything except the smallest debt, and attack that one with “gazelle intensity.” Once it’s gone, you roll the payment into the next debt and keep going until they’re all wiped out.
To make the Debt Snowball method work, you’ll need to free up as much money as possible—and that means making some tough choices. It might feel uncomfortable at first, but small sacrifices now can lead to big rewards later. Even if you can’t cut everything from this list, starting with a few changes will make a difference.
Remember, progress is progress. If you can only trim a little this month, that’s okay—revisit your budget regularly to find more opportunities to save. With persistence, you’ll become a frugal family in no time and, before you know it, you’ll achieve the financial freedom you’ve been dreaming of. Let’s get started!
1. Restaurants
Stop eating out! Each time you buy a sandwich, a bag of chips, or a soda from your office cafeteria, you’re extending the time it will take to get out of debt. By packing your own lunch, cooking dinner at home, and brewing your own coffee, you’ll save a substantial amount over time. Plus, once you’re debt-free, you’ll be able to treat yourself to dining out and ordering whatever you want without guilt. The key is to stop now so you can enjoy later.
2. Annual Subscriptions
Costco, Sam’s Club, Amazon Prime, and similar memberships might seem convenient, but they could be costing you more than you realize. The ease of purchasing can lead to overspending. Canceling these subscriptions temporarily can save you money and help you focus on essential purchases. Even small monthly costs add up over the course of a year, so consider putting them on hold until you’re debt-free.
3. Monthly Subscriptions
Magazines, newspapers, streaming services, and app subscriptions are often overlooked budget items. If you’re subscribed to an exercise app, entertainment service, or other recurring charges, take this opportunity to pause them. Free alternatives are abundant, and you can always resubscribe later.
4. Salon Services
Take a close look at how much you’re spending on haircuts, coloring, and nail services. Doing your own hair and nails at home, even temporarily, can save hundreds. This might be an emotional sacrifice for some, but remember, it’s temporary and part of your larger financial goal.
5. Car Washes
If you don’t live in an area where salt buildup makes car washes essential, grab a bucket and wash your car at home. Not only will you save money, but it can also be a fun activity to involve your kids in.
6. Lawn Care
While outsourcing tasks like mowing the lawn or cleaning up the yard is convenient, doing it yourself will save money. You’re working to clean up your debt, so it’s time to take the reins on these tasks for now.
7. Kids’ Activities
Cutting back on children’s extracurricular activities can be tough, but it’s a necessary step. A short break or a reduction in the number of activities they’re involved in won’t set them back. Consider limiting participation to one activity per child or rotating activities seasonally to save money while still keeping them engaged.
8. New Clothes
Take a good look at your closet—chances are, you already have everything you need for now. For kids, shop secondhand or use hand-me-downs. Thrift stores often carry name-brand items at a fraction of the cost, and your children likely won’t notice the difference.
9. The Gym
You don’t need a gym membership to stay fit. Go for runs, ride your bike, or do push-ups and other bodyweight exercises at home. There are countless free resources online to guide your workouts, helping you stay in shape without the monthly expense.
10. Alcohol (or Coffee)
This is a tough one, but it’s worth analyzing how much you spend on alcohol or specialty coffee. Cutting back or eliminating these expenses, even temporarily, can free up significant funds to put toward your debt.
Redefining Fun
It might sound like I’m a buzzkill, but I challenge you to redefine your idea of fun. Getting out of debt doesn’t have to be a grind. Make it a family journey and brainstorm creative, low-cost ways to spend your time. Enjoy quality conversations around the kitchen table, take family walks, or play board games. This period could strengthen your relationships and renew your body, mind, and spirit.
Keep Your Goal in Mind
As you go through the process of cutting expenses, keep your goal of debt freedom at the forefront. Remember, every sacrifice you make now brings you closer to the day when all your money stays in your pocket. Imagine being able to say “YES” to your dreams because you chose to say “NO” to unnecessary expenses today.
You’ve got this! For more tips and inspiration on your debt-free journey, be sure to check out my YouTube channel, Debt Free Dana!
