Do you want to go on a dream vacation some day? Are you signing up for a debt consolidation loan? Does your child really, really, really want dance lessons? Has your spouse been asking for a new car?
Unfortunately, everything has a price tag.
Some of those price tags are bigger than others, yet most of these things are not unattainable. In fact, with a bit of preparation and dedication, it is possible to start saving up for the different things you want and to see your goals grow closer and closer to reality.
After you’ve been approved for a debt consolidation loan and you’ve paid off your old debt with that new loan, the hard work begins.
Yes, saving money can feel like a tall order. But it’s necessary when you consolidate debt by borrowing more money from a lender. So roll up your sleeves and get ready for the money-saving work that lies ahead of you.
First off, make sure you decide what you want to save for. On top of getting out of debt, do you want an emergency fund? Do you want to save up for something specific? Are you planning a vacation but aren’t sure exactly how much it will cost?
Set a general goal for how much money you want to save and a specific goal for when you want to achieve this. For example, decide that you will save about $500 within six months.
This way you can know that you need to set aside almost a hundred dollars each month, or fifty dollars each paycheck. When taking out debt consolidation loans, planning ahead is of the utmost importance.
Control Your Urges… Forget the Splurges
Next, get rid of the mindless buying binges. Don’t scratch your shopping itch. Instead, consider whether you want to save your money and put it toward your goal or if you actually want to buy something you just randomly saw while shopping.
Also keep in mind that shopping should not be a hobby if you’re trying to save money. Try to fill your time with free or inexpensive activities such as reading, watching movies, going on walks or even playing in the backyard with your kids.
Free Is Good… Very Good
Fill your time with as many free things as possible. Eat at home if you can to reduce the amount of money you spend on food. Many people don’t realize just how much they spend on restaurants and dining out. They don’t realize it until they take a full account of their budget.
Consider cutting back to just one restaurant meal per week and spend the rest of the time dining at your home. Finally, consider reducing your personal expenses.
That big television package you’re paying for can do a lot more harm than good. The dough you’re spending on all that entertainment will benefit you more by putting it into your savings.
Do you absolutely need an unlimited data package with your cell phone? Is there a reason you need Netflix and Hulu Plus both?
Don’t Foil Your Own Efforts
When you are taking out debt consolidation loans to help reduce your monthly cost, all these extra expenses will be working against that loan. You’re kind of beating yourself by not eliminating those needless bills.
Cut back on some of your home usage expenses and you’ll find that your personal bills start to decrease and your savings start to increase. By now, I’m sure you’re starting to think of other ways of contributing to your money-saving cause.
As you put everyone of these things into action, you’ll start to think of new ones that might be beneficial. Don’t hesitate to put them to work. Use them as part of your long-term financial plan.
You’ll be amazed at how much you can accomplish when you get started down this path.