Quick Tips to Help Minimize Debt

Whether we like it or not, almost all of us will accrue debt at some point in our lives, whether it’s from using credit cards, purchasing a new home or vehicle, or taking out student loans. Debt comes in all shapes and sizes, but one thing almost always remains true- as soon as you get into debt you want to get out of it.

Saying Goodbye to the Morning Coffee Run

Think about the little things you can do to cut costs, and increase your savings and debt repayments. A small change you can make that will have a big impact on your budget is making your own morning coffee instead of going to a coffee shop. Although grabbing a cup of coffee on the way to work may be more ideal than preparing your own, you can save about $5 per day for every day that you make your own coffee at home. Doing this twice a week saves you $10. Doing this four times a week saves you $20. When you save $5, $10 or $20 it can be put towards a credit card payment, or pay a little extra on the principal of an outstanding loan.

Staying In One Extra Night

According to USA Today¹, an average date night for a couple in New Mexico can cost around $85. For a family outing, it can be an easy $100. Instead of doing costly activities together every weekend, stay at home and watch a movie, or play a board game together. By doing this once every month it quickly adds up to the tune of $3,900-$5,200 per year for the average family.

Packing a Lunch

Instead of leaving the office and purchasing lunch every day, try packing a lunch. A single meal at a decent lunch spot likely costs around $6-9 (more than $5 but less than $10). Make a point to go grocery shopping weekly to purchase items to eat throughout the week for lunch, and meal prep as much as you can to make eating on the go easier.

Even saving an additional $20 a month from cutting down spending can go a long way when it’s being applied to a credit card or other type of loan. That means that $20 less will be charged interest. For loans especially making additional payments may not seem like it’s making a difference, but in the long run it shortens the overall length you have to pay (saving you money).

Resources

1. USA Today, “Looking for Love: How Much Does the Average Date Cost in Your State?” Aug. 10, 2018