So recently I've been on my big health kick! I've been "trimming the fat" around my waistline and in my social circle. Now, its time to do the same with my finances. Now, anyone who knows me, knows that I'm what you call an "el cheap-o" and with this craptastic economy who could blame me! Unfortunately, even this el cheap-o has some debt to trim. So, here are some tips i live by and I want to share to help all my bros and sistas out:
1. Car note- Banks have some great APR rates on refinancing your vehicle. The way I see it, this is what I call "dumb" dept. If you can refinance to a lower rate and pay it off sooner...great! If not at least try to refi for a lower APR rate
2. Credit cards- Well I'm sure most of you have this debt. In my opinion this is the worst because most of the time you can ONLY afford to pay the minimum payment. Trust and believe when I say paying that will get you NO WHERE! The best thing to do is debt stack. Debt stacking is when you take the lowest bill and pay that off first. While your focus is on that particular bill you can pay the minimum on the other cards.
Also, I've started trying to use cash when I can and avoid using my debit card. You will tend to spend less when you have cash...at least I will. Plus, the cash is gone immediately from your account whereas using your debit card, the bank may reserve the funds you spend, but not directly take them from your account and the next thing you know, your account is in the negative....take it from someone who's been there! stupid Wachovia...humpf
3. Partying and BS'n- Yes we all like to go out and eat with our friends, and then go to the movies, etc., etc. But we're your broke and still trying to go out...yea not a good look. Personally my peoples know what the deal is. IF I even show up to hang out, I will not be paying for any kind of entrance fee, I will not be eating anything, and IF I drink something it will be water all night with a lemon! Holla! Now, I'm not saying one should deprive themselves, but there's nothing wrong with limiting yourself for a little while.
4. Coupons/Sales- My mom's is a coupon clipping somebody! LOL I love her for it though! Try to Google online coupons for various stores and merchandise. And of course you can always do it the old fashion way like my mom's...clip those coupons and save! Oh and always shop sales w/ coupons...double the savings! I NEVER go shopping unless there is some kind of sale, I have a coupon, or I have a giftcard.
5. BUDGET- This obviously is the most important. Personally, I write out all my bills every month and add them all up. I then subtract that from my monthly income and ta-da! I now see what I have left over and depending on what it is will determine how much I will contribute towards groceries, whether or not I'll get a mani, pedi, facial, shop, etc. It's ok to be a Diva on a budget!
So, those are my tips. Love or leave em, but its what helps/helped me. Please feel free to share whatever tips you may have. I would love to learn more about how you trim your fat.
2. Credit cards- Well I'm sure most of you have this debt. In my opinion this is the worst because most of the time you can ONLY afford to pay the minimum payment. Trust and believe when I say paying that will get you NO WHERE! The best thing to do is debt stack. Debt stacking is when you take the lowest bill and pay that off first. While your focus is on that particular bill you can pay the minimum on the other cards.
Also, I've started trying to use cash when I can and avoid using my debit card. You will tend to spend less when you have cash...at least I will. Plus, the cash is gone immediately from your account whereas using your debit card, the bank may reserve the funds you spend, but not directly take them from your account and the next thing you know, your account is in the negative....take it from someone who's been there! stupid Wachovia...humpf
3. Partying and BS'n- Yes we all like to go out and eat with our friends, and then go to the movies, etc., etc. But we're your broke and still trying to go out...yea not a good look. Personally my peoples know what the deal is. IF I even show up to hang out, I will not be paying for any kind of entrance fee, I will not be eating anything, and IF I drink something it will be water all night with a lemon! Holla! Now, I'm not saying one should deprive themselves, but there's nothing wrong with limiting yourself for a little while.
4. Coupons/Sales- My mom's is a coupon clipping somebody! LOL I love her for it though! Try to Google online coupons for various stores and merchandise. And of course you can always do it the old fashion way like my mom's...clip those coupons and save! Oh and always shop sales w/ coupons...double the savings! I NEVER go shopping unless there is some kind of sale, I have a coupon, or I have a giftcard.
5. BUDGET- This obviously is the most important. Personally, I write out all my bills every month and add them all up. I then subtract that from my monthly income and ta-da! I now see what I have left over and depending on what it is will determine how much I will contribute towards groceries, whether or not I'll get a mani, pedi, facial, shop, etc. It's ok to be a Diva on a budget!
So, those are my tips. Love or leave em, but its what helps/helped me. Please feel free to share whatever tips you may have. I would love to learn more about how you trim your fat.
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