We all want to make moves to both eliminate or at the very least reduce our debt in the coming year. So how should you move forward with an effective plan that definitely will get rid of the mountain of debt for good. It primarily boils down to changing our mindset and behaviors when it comes to how and why we spend our money, as well as how we pay our debts. Allow yourself a good amount of time with notebook and pen in hand to begin to take action on a plan for 2013 and beyond to eliminate your debt, one bill at a time.
Develop a plan
One can’t say enough about getting to the habit to develop an overall financial plan. This is what helps you organize your thoughts, especially around debt issues. When you make a plan you can clearly begin to see who you owe and what you owe, then you may promptly create a realistic strategy around that. This plan can start by typing or writing down your budget strategy.Plan to start eliminating the smallest bills first. Make sure to list all of your fixed income sources, on one side along with all of your expenses on the other. Make sure you include emergency and leisure on the list. It’s important to be realistic with the fact that just because you are paying off your debt, does not mean that you won’t also have to balance your life, even in a frugal fashion.
Tax Write Offs
The option of tax write offs, was probably not on your list of debt elimination tactics. Don’t worry, this is normal thinking because in most cases the tax office may actually be one of your debtors! If you happen to give money to community organizations, there are ways that you can write off donations or any other charity cause. There is also the option to invest in stocks or bonds which earn tax dividends. If you do not owe money on your taxes and you happen to be spending more money than you have earned, of course your refund can then be applied to any monthly debt expenses.
Watch How You Use Your Time
We know the economy is slowly trying to get better in 2013, with the rise of new jobs and employment opportunities both online and offline. Whichever profession that you happen to be in, make sure that you are working on your taking control of how well you spend your time and what it’s worth in remuneration. If you can manage to get a high paying job or multiple streams of income. It will definitely help in putting a dent in your recurring expenses.
Learn To Cut Back
It’s easy to go into a grocery store or a shopping center and be easily up sold by a savvy salesperson. This can be a bad habit to get into, especially if you happen are impulsively spending on a shoe string budget or worse no budget at all. It literally pays to cut back on luxury items or to turn down an inviting sales pitch in order to take control of your finances. It’s a great challenge for most to be able to make this choice, but it will significantly add more money to your pockets for pressing debts. It also helps to look for discounts on your leisure activities as well, if you tend to go out a lot.
By starting to make these small changes to your everyday spending habits and developing a mind state to eliminate debt for good, you will undoubtedly start 2013 off on a good foot!