want to get out of debt !

[brunt]

I cannot recommend this highly enough...

Read The Tightwad Gazette. It's a wonderful book just full to the brim with practical ideas (and humour) on how to save money. Take it out from the library, buy it new, or (like I did) buy it for a buck at a thrift store, but GET IT.

[suziehenderson]

If your situation worsens, you might want to consider a consolidation loan or even debt settlement. A friend of mine used debt settlement, but her situation was bad.. I mean she had over $50,000 in debt. There are also horror stories out there from some companies in the USA charging insane upfront fees so make sure you do your research and choose a reputable company. Google shows a complete guide at http://www.debt.ca/debt-settlement. Best of luck to you and your family.

[MortgageQueen]

Depending what your downpayment is, you can still get 30 yr amortization. . .which can lessen your mortgage payments.

In regards to the "1 Bathroom" Comments. . .I have a separate mirror and make-up area that lessens bathroom time. Having a good size mirror in each bedroom helps too. Putting a sink in the laundry area (if there isn't one already) also helps tremendously

I agree, we've just become too accustomed to luxury. At the same time, my parents moved us to the country when we were kids and we gave up a lot of luxury in exchange for a more cleaner natural atmosphere. . . .it's all personal and what matters most to you.

[GoStumpy]

How's it going?

I've learned a helluva lot about getting out of debt since I posted last in this thread... I've paid off ~$1500 in debt after saving up $1000 for emergencies to prevent me from going back into debt! It's not easy, sacrifices have to be made, but it IS possible.

[HorndoggJr.]

join swagbucks here at the bottom of the page it helps me get that little bit extra money.

[The Heretic]

This thread has been quite enlightening. There are some very useful comments and tips that I will be putting into practice.

I do want to say though, as much as one budgets and commits themselves to following a plan to get out of debt, there needs to be some consideration paid to the emotions that will eventually work to throw one off course.

Getting out of debt must be a burning desire, and it must be followed up with a commitment that will see you through the many times ahead in which you will have to make the tough, logical, but often unpopular decision of saying no. These decisions can quite often be made more difficult when you are dealing with emotions like guilt, depression, even pride.

Are you prepared to explain to friends or family that you will not be able to make their special event which is taking place miles and miles away??

Are you ready to make your lunch for the next day every evening, even though you are tired and crawling to go to bed??

What's your plan to control the urge to emotionally spend when you are happy/sad/depressed/angry/(enter your emotional trigger here?)

Will you be able to hold your spouse accountable to following the budget? Is your spouse even with you on this?

If you don't take into consideration strategies to handle situations like these before hand as well as when they come up, you can quickly find yourself not only saving less money, but in even more debt than before.

Financial management is 20% head knowledge and 80% behavioral change. (source: Dave Ramsay)

[lucy16076]

I suppose budgetting is a lot like dieting...a short term solution to help us feel better about ourselves. I know first hand how difficult it is to give up the luxuries that come with eating out, nicer clothing, newer cars, boutique grocery stores if you will....but ultimately, budgetting leads to "wagon falls" just like dieting.
Spending money is purely psychological. Train the brain to live within your means & take note of where your money goes. If you don't have enough to eat, well...that's a different struggle all together. Budgetting won't do you well....but I'm guessing anyone that has access to a computer & who is online, has some "extra" money to be able to do so. It's all about choices. Train your brain. Talk to yourself. Needs versus wants. Happiness versus aggitation. The mind is trainable but not done overnight.
I love all the save money ideas on site here! I do have to say, I've struggled with debt, divorce & unemployment...it's not fun. Fortunately I am on my feet better than ever, but realize that I don't need most of the things that I had heartached over before...ie cable, land line, new clothing, etc etc....I can do with much less & have trained myself (for the most part...some days I do throw caution to the wind & splurge), to be happy with what I can afford. Maybe this comes with age??
To all those struggling, see the light at the end of the tunnel when you separate your wants & needs & feel the accomplishment of getting out of debt.
If you can't manage your credit cards after you've paid them off, freeze them in a block of ice so you can't use them. Do not cancel them as that somehow hurts your credit rating. (that doesn't make sense to me but it is what it is)
Use dish cloths until they wear through....why waste money on new ones when the old ones still work?
Use conditioner to shave your legs girls...better than shave gel & cheaper!
Forego expensive hair salons & color your own hair with dye bought on sale with a coupon!
Manicures & pedicures are "treats" not weekly must haves!
Gardening season is almost upon us...I'm going to try it, will you?
Ride your bike to work. Exercise & saving money! What a great idea!
Get power bars & unplug all those "phantom" hydro items with a click of a button when you aren't using them. I have my computer, TV, Sony box, Digital recieiver, & DVD player all on power bars that stay unplugged unless we use the internet or watch the TV.

I agree with this totally....Financial management is 20% head knowledge and 80% behavioral change. (source: Dave Ramsay)

Good luck living within your means!

[blueeyetea]

I do want to say though, as much as one budgets and commits themselves to following a plan to get out of debt, there needs to be some consideration paid to the emotions that will eventually work to throw one off course.

Financial management is 20% head knowledge and 80% behavioral change. (source: Dave Ramsay)

But even Dave Ramsey doesn’t touch much on the psychology of saving and spending money apart from the “live within your means” mantra. I would bet that many people who spend a lot of money do so based on triggers they’re not even away of, and I’ll even go so far that as saying that a lot of it is mindless spending. Then, when they realise they need to cut back, they make a budget which automatically brings forward the feeling of deprivation, which is even worse, so they console themselves with a buying spree.

The questions on dealing with different scenarios are a good start, but they still fall into the deprivation trap because the focus is still on what you’re not getting. People have to look within themselves and look at how they can go from being deprived to being satisfied with what they already have.

First people have to track every penny they spend. Second, they need to figure out how much it’s costing them apart from the obvious sticker price. Everyone automatically assumes the hourly rate they earn is pure cash. Well it’s not. I prefer the way the book Your Money or Your Life tells you how to calculate your life energy, but to keep it simple, I’ll use Gail Vaz-Oxlade’s method. Take your take-home pay and deduct all your needs, i.e. rent, transportation, food, and divide what’s left by the number of hours your worked. Let’s say you end up with $5/hour for your wants. Every time they want to spend money, they divide the amount by $5 to know how many hours they have to work to pay it off. Third, knowing how much they have to work, they need to ask themselves if what they’re buying is bringing any value or fulfillment into their lives.

At first, because they’re still in deprivation mode, it’s a good bet that all the overspending is justified. But by continuing the exercise, they start noticing that some areas are getting their dollars more than others and than they start asking themselves questions. They start noticing the thoughts (or lack of), and impulses that triggers spending. And triggers, there are many. From keeping up with the Jones, to being influenced by advertising, or psychological needs that can’t even be articulated because they’re so ingrained in someone’s personality.

Once they start being conscious of their triggers and what unfulfilled needs are being answered, then they are better equipped with saying no to unnecessary expense. In many cases, they don’t need to be spending to get fulfillment in their lives.

Let’s apply this to one of the questions above, the one about travelling to a family event. Let’s assume the $5 hourly rate discussed above along with the trip would cost $500, translating into 100 hours of work. How much fulfillment will taking this trip bring to your life and is it worth 100 hours of work? Only the person in that situation can decide and act accordingly.

[saundyl]

I've tried alot of things to save money. They add up in the end.

Things I do/have tried

1) Cook at home and use fewer prepackaged goods
2) eat left overs
a) i freeze leftovers for lunches or suppers when I'm home alone with out my boyfriend or the boys.
3) I go home for lunch rather than eating out or taking a lunch (its only a couple minutes home) i found that when i took lunches i was more apt to go oh i don't want that now and go home anyways and what i took for lunch got forgotten about or soggy.
4) Use the library or find sources for books that are free or cheap (garage sales, flea markets, borrow from friends, trades/swaps)
5) Walk when you can
6) Mend clothing when it gets damaged.
7)Turn lights etc off when not in a room
8) Coupons - stacking isnt allowed here either and coupons found are few and far between except online
a) Combine coupons with sales
b) i've started ordering extra coupons i may not use so i can trade with friends and family for ones i will use. or trade online.
9) Find free sources of entertainment or cheap ones
10) Thrift stores garage sales etc for second hand items. Or even Buy and Sell on facebook - many areas have one now.
11) Sell used items online or at a garage sale etc.
12) turn down the heat even just 2 degrees.
13) pay things on time as much as possible the late fees and interest add up so fast.
14) Movies - i use netflix for 7.99 a month i watch a three to five movies which would cost me 4.98 each to rent
15) Drink more water - pop juice coffee milk all get expensive. I dont know about there but here milk is 7.98 for a 4 litre.
16) We purchase non perishables and things that will travel ok out of town when we go south as they are MUCH cheaper.
17) don't shop hungry.
18) Wear clothing more than once between washes - pants dont always need to be washed every day.
19) Make use of Employer provided health care and other benefits (i found out recently once a year i get a $500 clothing allowance to bring in receipts for the year and get reimbursed)
a) my employer brings in a massage therapist for a 20 minute massage for each employee one Wednesday of the month I
looove massages and make sure i get mine. Plus if people dont take part often employers will cut the perk.
20) Drink coffee made at home rather than buying it at a shop.
21) Create a budget
22) keep track of spending. I started and was shocked to see how much i wasted on pop and chips.
23) I've been told you can call and negotiate bank fees. I'm considering doing this with one bank account soon.
24) I paid off some of my smaller debts first to encourage myself to keep going. They were also the "worst" looking ones on my credit report though.
25) buy in bulk if you use enough of something
26) take your own bags to stores that charge for bags
27) garden if you have the space
28) eat at home before going to an event or movie. (some people sneak cheaper snacks in)
29) Before i make a purchase of something i want i really have to consider if I'm really going to use it, how often and what for. After I've thought about it a while then i'll make the purchase. I try to plan what I'm buying or save for what i really do want. IE i recently purchased a quad helmet. I need one because i want to go quadding with my boyfriend however it wasn't necessary last fall when i saw them in stores here in town for 189. So i saved my money til Easter and found the same helmet on sale at CDN tire for 89.99.



I think I've found the biggest help to me has been the tracking my spending and creating my budget. I have to stay within my budget to be able to live comfortably and make all my payments. If I hadn't closed my business with an outstanding loan I'd be a heck of alot better off but I need to make fairly hefty payments on time to that loan so as to not damage my co-signer's credit. Once I have that loan paid off I swear I am going to feel rich.

[saundyl]

I suppose budgetting is a lot like dieting...a short term solution to help us feel better about ourselves. I know first hand how difficult it is to give up the luxuries that come with eating out, nicer clothing, newer cars, boutique grocery stores if you will....but ultimately, budgetting leads to "wagon falls" just like dieting.

I don't think budgeting is like dieting. It can be if thats what you see it as but you can also go the "lifestyle change" route and budget that way too. You don't have to cut out the things you enjoy you just need to make sure that the needs are accounted for before the wants. I know of some people who even keep a "splurge" account so they can go ahead and buy that dress thats not in the budget. But they save over time to be able to do it.

[suziehenderson]

There is a guide money saving guide at http://www.debt.ca/debt-guide. It really helped my family that's for sure.