Most people who want to get out of debt quickly will make a budget, then start cutting.
Naturally, the first thing you need is a budget! Once that is drawn up and you see where your money is going (and how much) here are the most common budget items that go on the chopping block and get sacrificed:
- Eating out: Restaurants can kill your cash flow fast. trust me on this one, it is a vice I struggle with myself. While dine-in restaurants can take large chunks out of your budget at one time, my problem has always been the convenient
and “cheap” fast food drive-through while out and about and pressed for time. Yes, that’s a double whammy: the food is less than nutritious and it hurts the budget. When I first started out on the budget last year, I allocated only $20 per week for all eating out.
- Cable or satellite television: This one waited until last summer to go on the chopping block. Now I am not even sure why I waited! Since there is no “a la carte” channel choosing option available in our area, we were paying for 60 channels and only watching about 15 of them. Last fall, I decreed that until the cable company offers the “Nerd Channel package” we weren’t going to bring this back (nerd channels: Sc-Fi, TLC, Discover, A&E, History, etc. You know, stuff “only nerds watch” that I do enjoy.)