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Bigger Means Better in the Budget-Cut Game Comments

  • By MP Dunleavey
  • April 11, 2011

Deposit - Bahamas Passport Save the Date (Traditional U.S. Seal)Part three of an ongoing ditch-your-debt series.

It’s a lot more fun—and efficient—to demolish your debt in big, satisfying chunks.

So instead of tightening your belt one small notch at a time, identify one or two big sources of savings and kick your debt payback into high gear.

Examples: Give up a car instead of your daily latte. Slash a $300-a-month vice instead of six minor expenses.

Assuming you’ve already read the chapters on living the debt-free life and how saving can save you, make your next move a biggie. Here's how:

List your $200-plus expenses: car payments; gas or commuting costs; rent or mortgage; day care/babysitting; the cable-TV-internet humdinger.
Identify pricey habits and what they cost you: new gadgets; eating out; alcohol; smoking, etc. (Hint, if you don’t know your top money wasters, track them on Mint.com.)

Then, brainstorm creative ways to slice one big spender out of your budget so you can put that money toward debt. The payoff is huge:

If you have...

$8,500 @ 14%
And you're paying...

$150/month
You'll be debt-free...

8 years


$8,500 @ 14%


$300/month


3 Years

Drop it. What killer expense did you dump to get out of debt?

Tagged in: Budgeting

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