Get Out of Debt Part 2: Make Cuts

We all want to be financially sound with our finances. Being in debt or having excessive stress from expenses is not a healthy way to live. This is especially true when YOU have the ability to change it all. Your first step is to get a working budget to know where you are starting from. Your next step is finding out where you need to trim the excess.

Do You Need It?

One of the easiest ways you can cut your expenses is to figure out if it is essential for your everyday life. Once you have a budget, you should have a good sense of all of your monthly expenses. From these, establish which are essential to your everyday life, and which can be removed. Although it is going to be tough, I would suggest going as extreme as possible with this. Yes, you might cut cable and miss some favorite shows, BUT you can always get it back later when you are in a better financial situation.

Does It Fulfill A Need?

After going over the items you think are essential, you might still be holding on to some items you don’t need to. It is time to think of some of the residual expenses another way. Do you have expenses that are fulfilling a need in your life? Or are you simply holding on to them because you don’t want to be without it? Which is going to be better for you, a short period of time without these “things” or a continued stress filled life struggling with money because you can never seem to get ahead?

Do The Right Thing, Make The Cuts

When it comes to finally making the changes, don’t do it gradually or hesitate on it too long. Rip it off like a band-aid. Just do it! You may suffer some withdrawals for a short period of time, but it will definitely be worth it in the long run!