Nothing beats the freedom of getting your spending, and your debt under control. But, because debt can be so scary and overwhelming, sometimes the instinct can be to bury our heads in the sand and ignore the problem. The best way to begin to confront your debt issues is to really get to know your situation, your spending habits, and your options. This information empowers you to make good decisions about your spending, to help you become debt free faster.
One important way you can control your spending, and help find more spare cash to put toward your debt is to take a look at your eating habits. There are many small habits we have that cause us to waste our money on food, when more affordable and more quality options are available to us. Below, we?ve provided three money-traps that many (most!) people fall into with food. By making changes in these small areas along, you stand to save over $4000 per year. And, once you?ve evaluated your own food-related spending, you can apply the same logic to every area of your life, and save thousands more.
Daily Coffee or Treats
Most of us need a morning pick-me-up of some kind, but your daily drink habit might be adding up in a way you hadn?t realized, especially if you buy a few times a day. The average American pays about $2.75 for a cup of coffee they purchase, when they could make the same cup for $0.16 in their own home or office.
If you cut out your morning coffee and make your own brew at home, you stand to save almost $1000 a year. If you?re someone who buys multiple drinks a day, that doubles and triples your cost over the year. Save yourself the time and the money and bring your own coffee or tea from home.
Weekday Lunch
Weekdays can be a blur. Making it through the work day and having time to actually enjoy yourself in the evening can leave very little time to think about lunch. It is a wonderful treat to go and have a hot and delicious meal in the middle of the day, away from the stress of work.
If you?re spending $7 a day on a lunch you could make for $2 at home, you are wasting over $1300 a year, money that could be better spent on your debt and your personal savings. Go the healthier route and make your own lunch every day, and you?ll see the difference at the end of the month.
Weekly takeout
The average person in North America is spending more and more on restaurant and take-away food. It is the new normal. Spending $20 on dinner even once a week is an expense that can add up to over $1000 a year. Do yourself a favour and practice your culinary skills, rather than ordering in. It will really pay off in the long run.
Food waste
Ugh. Nothing is more annoying than throwing out perfectly good food that you didn?t get around to eating. If you struggle with this habit, you aren?t alone. The average American wastes $640 per year in food from their home, and it is a habit that can add up to more. Taking the time to carefully plan your meals and shopping means you can eliminate this expense, and have the perfect amount of food to pack for lunch.
The Math
These are not the only habits that add up to cost you thousands a year. Take a look at your spending habits, and how you approach the way you value your money. Once you are truly aware how much something costs you, it is very easy to be proactive and realistic, and work to fix your situation. Beyond the initial savings, you?ll be able to avoid the interest and penalties you need to pay on long-term debt.
Below, we?ve provided the math on these expenses, and the incredible savings that result over time. Apply this same logic to all of your spending and you?ll be sure to be focused on the essentials, and well on your way to eliminating debt as soon as possible.
