Frugal budgeting tips: Help you repay debt and manage finances better

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By: tiarajoseph11
on 11th Jun,2015

Smart budgeting can help you repay your debts on your own and build your financial health simultaneously.
Frugal budgeting tips: Help you repay debt and manage finances better

Smart budgeting can help you repay your debts on your own and build your financial health simultaneously. In turn, it will help you get hold of your financial life in a better way. Read through the article to get acquainted with 4 frugal budgeting tips that can help you become debt free on your own.

4 Frugal budgeting tips to repay debts and manage finances better

Frugal budgeting is important irrespective of your financial circumstances. As you start implementing frugal budgeting tips in your life, you'll get a correct picture of your financial situation. You will get to know about your monthly expenditure, savings (if any), disposable money for making debt payments, etc. This will in turn help you deal with your debt problems efficiently. Take a look at the 4 frugal budgeting tips that can help you erase debts on your own.

1. Reduce expenditure:

This is the most difficult part of frugal budgeting. You have to look for ways to change your spending habits and reduce your expenses if you want to save dollars for making debt payments. Here are some items on which you can reduce your expenses.

a)Water bills: You can fix a water meter in your home. The best part of fixing water meter is that you'll be charged as per your water consumption. So, if your family doesn't waste water, then you may end up paying a small bill amount at the end of the month. You don't have to pay the standard fixed rates any more.
b) Grocery bills: Go to the grocery store with a shopping list. Stick to it at all cost. Don't fall for "buy one and get one" offers and purchase items, which you don't need. Do not purchase packaged food as they're usually quite costly. Cook your own food. This will not only help you save money but also enable you to stay fit.
c) Credit cards: If the current interest rate on your credit card is too high for you, then consider transferring the balance to a single low rate card. This can help you save money on your credit card payments. And, plan a suitable budget and save more so as to repay your outstanding balance fast.
d) Electricity bills: Invest in electrical appliances which don't consume much electricity. You can also use power saving gadgets at your home. Turn off the lights when you're not in the room. Moreover, try to use washing machines, thermostat, etc. more during low peak hours, if possible. Maintain your thermostat at 1 degree below your normal temperature during winter. These simple tips will help you reduce your electricity bill easily.

2. Save on medical care:

There is a proverb called "Health is wealth". So, if you are fit, everything else seems to be fine. However, if you are not well, that everything turns bitter. Apart from that, you have to spend a huge chunk of money for paying the medical bills. A large number of consumers go bankrupt, because of medical debt, every year. So, if you want to save on medical bills, then you should always try to stay healthy.

A lot of people think that you can stay fit only by eating costly food. It is a wrong conception. You can stay fit by following these tips: a) eating fresh fruits and vegetables, b) exercising regularly, c) going for long walks. If the monthly premium of your current health insurance is high, then switch over to another insurer who offers you a better deal. You can also opt out of the coverage which is unnecessary. This may also help you lower your premium rate and in turn, generate some extra cash. Use this money to make extra payments on your debt or it will make extra room in your budget planning.

3. Make payments in cash:

If you want to purchase something or pay your bills, then make sure you pay in cash. Take out a considerable amount of money for your weekly expenses. Avoid using credit cards and try to cover your expenses within that amount of money. This will help you reduce credit card bills and save money.

4. Increase your cash flow:

It is true that the above 3 points can help you save some cash. However, you should also try to increase your earning potential. If your employer pays a handsome amount for working overtime, then take advantage of it. You can also take up part-time jobs in your weekends. If you live in a big house, then consider shifting to a small house. This will help you reduce you house maintenance cost. You can also rent out a portion of your house and earn a good amount of money every month. This will help you increase your monthly income. Use this money to pay back your creditors or to plan your financial future.

Finally, it has been seen that several people have been able to get rid of their debts and restore their financial health by following frugal budgeting tips and employing a frugal lifestyle. It doesn't mean that you have to compromise with the enjoyments. Just you have to be financially smart. Even if you don't have debt, you can follow frugal budgeting strategies to save more every month and in turn, use the money to build a better financial future.

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