In the age of instant gratification and readily available credit, consumers have the freedom to make choices that satisfy their needs and wants, according to Charnel Collins, CEO of National Debt Advisors.
Collins said that if consumers don’t manage those decisions, they can get stuck in the debt trap.
"Debt continues to be a heavy burden to bear for many households who are struggling to make ends meet," Collins said.
Janine Horn, a financial adviser at Momentum, said that consumers have been forced to sacrifice savings in order to cover expenditures and service their existing debt, but savings is a key component of a sound financial plan.
Although you may have debt, there are steps that you can take to start saving money.
Here are four ways you can save more money even if you are in debt:
One seed at a time
Do a thorough inspection of where you can cut costs by taking a thorough look at the expenses. Getting a clear picture of your financial situation will help you take charge of your income.
A good way to approach a savings plan is to plant one seed by taking a good look at your expenses, cutting one small cost every month, and then building from there. This will be the first seed in your savings plan that can grow step by step.
Save money for emergencies
Shave off some 1money from your monthly expenses and instead put the money away in an emergency fund for a rainy day. The fund will be useful when you have an unexpected emergency, instead of going into debt.
Change your shopping habits
Changing or tweaking your grocery shopping habits is a good way to save more money.
You can change your shopping habits by:
– checking newspapers for special offers
– shopping at stores in close proximity to each other to save on fuel
– setting a grocery budget before your shopping trip
– do online shopping to avoid the impulse items at the checkout aisle.
Close the gap
People whose expenses are greater than their income are on track to spend any savings they may have and potentially take on debt.
Now is the time to find something that will close the gap between what you earn and what you spend.
You can close the gap by getting that side hustle that you have always wanted to start off the ground or a new side job.
You can rent out the spare room in your house with Airbnb or put your culinary skills to use by starting a baking business. People can take on extra jobs like bartending, waitressing, house-sitting, or tutoring to earn more money.
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