Cutting Back

The seemingly small purchases and daily addictions can actually add up to a huge number over just the course of the year. If you are trying to save or pay off debt, these are the best areas that you can cut back on.

For instance, if you’re buying $5 of coffee every single day, you’re actually spending $1,200 a year. That amount could have made a huge difference on your savings or could have put a huge dent on your debt. If you can cut back on other things like alcohol, fast food lunches at work, magazine and cable subscriptions, you could certainly free up a lot of money that could help your savings or efforts to pay debts off. But some people are unable to cut back simply because they’re afraid to make that sacrifices.

You may not be able to function well without coffee, but homebrewed coffee certainly costs cheaper than Starbucks. Perhaps you could switch to generic brands instead of the usual expensive name brands. Maybe you’re not really taking full advantage of your gym membership or magazine subscription.
When you try to discern where your finances stand, you can easily see that even the littlest things add up. You may not be able to give up certain things, but if you can give up the things that you can easily eliminate in your life and things that don’t really bring value, you’ll see some cash being freed up.

Cutting back on certain things may seem bring inconvenience or unusualness, but you might realize you don’t miss them and the sacrifice isn’t really all that bad. What’s bad is to keep paying for things and services that you don’t generate value from. Instead, put that amount towards your savings or pay off debt and you’d be in a much better place, financially.