The following is a guest post…

In today’s current economic climate it isn’t always easy to make ends meet, and often debt and expenses can pile up quickly. If you are not in a position to increase your income and need to look for ways to budget more efficiently give these 5 tips a try and see if you can manage your money in a more effective manner.

Use available budgeting resources

Free budgeting tools (such as Mint.com or FinanceWorks) are easy to find online, and rather than spending hours making your own spreadsheets and trying to create your own systems take advantage of these reliable options. You can track your spending, create a complete budget, compare monthly expenses and keep a running total of all your expenditures electronically, thus reducing the chance of losing track of necessary details along the way.

Identify cash leaks

If you withdraw money from an ATM and then have no idea where you spent it, stop withdrawing money at an ATM! Withdraw a bulk amount once a week and once it is finished do not withdraw any more unless absolutely necessary. By using your debit card rather than cash you also have a record of where you spent money, rather than just knowing you drew a certain amount and now it’s gone.

Essentials come first

Draw up a budget that consists only of your essential payments before adding anything else to the list. Beware of luxuries that are masquerading as necessities and where possible cut back or replace them with something cheaper.

Swap your options

To budget more efficiently you need to determine if there are areas in your life where you can cut back, but still enjoy activities in a different form. For example, if you enjoy playing casino games consider switching to online or mobile options where you can play top games in the comfort of your own home.

Lower your income

The best budgets allow you complete financial freedom and stability. One smart way of attaining this goal is to pretend you earn less than you actually do. Try and budget using 90% of your income and save the balance in an account you do not utilise on a daily basis. This will allow you to save for big items or have an emergency fund should you need it, whilst also teaching you to live on less and practice more effective money management.

The post 5 Ways to Budget More Efficiently appeared first on The Family Finances.

The following is a guest post…

Have you been wondering about your home’s energy efficiency lately? Seen the neighbors upgrade their homes in interesting energy-efficient ways and wonder what you’re missing out on? In order to get a good grasp of your home’s current level of energy efficiency, start with the EPA’s Home Energy Yardstick and move on to hiring a specialized energy auditor if necessary.

Once you have identified your needs, the recommended steps to transforming your house into a more energy-efficient one start with focusing on the house’s shell, e.g. walls, windows, doors, then moving to more efficient systems and appliances or to clean energy generation, e.g. solar.

Sealing and Insulating

Insulation from the cold of winter and the heat of summer can easily reduce energy costs in any home. It’s important not to forget insulation in critical spaces like attics, where extensive heat losses can occur during the winter. Every home is different, so predicting leakages can be sometimes senseless, but leaks are often found in seams between the foundation and wood framing, along baseboards, around electrical boxes, and around fireplaces. Experts can utilize an infrared light or “blower-door test” to identify existing gaps that need to be sealed if your house is already insulated. If you are not the first owner of the home and have little knowledge of the existing insulation, it would be wise to spend a bit extra on an assessment.

A basic upgrade of your home’s shell can save you more than $200 a year on your total energy bills, making for a significant return on your investment in just a few years.

Doors and Windows

Your home’s windows and doors are potential sources for serious air leaks and if you’re interested in replacing them, make sure to choose models with high insulation values. Some bargain shoppers instead just cover the windows with thin plastic sheets from their local hardware store. Though not a long-term fix, it will make-do for this winter before you have time to invest in replacements, which are, in fact, better for those looking for long terms returns on their energy investments.

Heating and Cooling Equipment

If you are looking for even more energy efficiency and have more to invest in the project, the next step is to shop around for heating/cooling systems with EnergyGuide labels or the ENERGY STAR logo. If you can only afford one upgrade at this time, keep in mind that air conditioning is more energy-efficient than heating, mostly because of the insulation failures that let the heat escape. And if you cannot afford a heating system upgrade at this time, be sure to invest in a programmable thermostat to save lots of money while you sleep and while you’re away. The bottom line is, though, if your current technology is more than ten years old, you are not taking advantage of the latest energy-efficient heating and cooling systems, so you should consider an upgrade soon.

Overall Move towards Efficiency

An overall move towards an energy-efficient home has significant financial benefits, as addressed above, further incentivized by the government’s Federal Tax Credits for Consumer Energy Efficiency. So when you file next year, you can expect a ten percent return credit on purchases of windows, doors, heaters, coolers, insulation, etc., making the investment pay off even more.

If all of the aforementioned structural changes are currently outside of your price range, consider taking some smaller lifestyle changes that can really up your overall energy efficiency. Lastly, it’s important to remember that structural changes will also require a few changes in your routine. If you decide on energy-efficient appliances, be sure you use them correctly!

This is a guest post by aspiring freelance writer Jonathan Mehlig for www.TexasElectricityProviders.com. Jonathan usually covers frugal living and personal finance topics and loves hiking in the Rocky Mountains in his free time.

The post Is it Worth it to Make Your House Energy Efficient? appeared first on The Family Finances.

On Monday, April 29th we had to say goodbye to our greyhound Fin.

The Diagnosis

It happened so suddenly that we hardly had time to process what was going on. We’ve had our house on the market for quite a while now, and we finally got an offer in the early part of April (a separate post about this is in the works, so stay tuned). We had been packing boxes and moving them to my in-laws’ house and noticed that our dog wasn’t eating. With all the packing and everything, we figured he was just nervous and that he knew something was going on. So, we let it go a couple of days to see if his appetite would return after a few days of normalcy…

Two days passed, and he still wasn’t eating. He was also acting very lethargic. He’s always been a lazy couch potato, but this was getting extreme even for him. So, we called and set up an appointment with the vet (for a Tuesday) to have him looked over. After running some blood work, the vet told us that it was either an infection or lymphoma (cancer). He gave us an antibiotic in hopes that it was just an infection. He also gave us instructions to simply feed our dog whatever he would eat, which turned out to be canned chicken and instant rice.

After giving him the antibiotic for two days, our dog only seemed to be doing worse. He continued to lose his appetite, and at this point would only eat a few Beggin’ Strips. We called the vet and brought him in for further testing that Friday. He was officially diagnosed with lymphoma (cancer), and the vet said it was very aggressive. He said that chemotherapy was an option, but the fact that our dog already had underlying kidney problems meant that the likelihood of successful chemotherapy were not  good. And even it was successful, it would probably mean between six and twelve months of relative health before the cancer returned.

The thing is, even if we had wanted to pursue chemotherapy our dog wouldn’t have made it to the next week to get in. His condition deteriorated further over the weekend. He wouldn’t eat anything, and his breathing was becoming heavy. With tears in our eyes, we knew it was time to say goodbye and made the call to the vet. The following Monday morning was the worst morning I’ve ever had. Mondays are bad enough in general, but this was taking it to a whole new level. We cried, said our goodbyes, and held our dog one last time.

Dealing With Grief

Going through this was one of the most difficult things I’ve ever been through. I’d never really lost anyone before that I was really close to. I lost two grandparents when I was a kid, but I don’t really even remember what that was like. I lost another grandparent when I was in college, but we weren’t that close. This was my first real taste of loss, and it was definitely bitter.

Oh, I know there are people who will read this and say it was just a dog. But our dog was just as much a part of our family as me, my wife, and our son. He was a great companion for all of us and was the best dog we could have ever asked for. I like to think the feeling was mutual. Our dog always seemed to love being with us just as much as we loved being with him. He loved his walks and bye-bye trips. After spending the first few years of his life at the racetrack, I think he truly appreciated having a home where he could relax and just be a regular dog for a change.

He got along great with our little boy. When we brought our baby boy home from the hospital, the first thing our dog did was walk over to the baby and give him a little kiss on the side of his head. They were instant buddies. Fin looked out for our little boy and was always very careful around him. As our baby boy grew into a toddler, their bond only grew. They were supposed to have several more years together, but things don’t always work out the way they should.

Goodbye Fin. You were truly a wonderful dog and we miss you dearly.

The post Saying Goodbye Is Hard To Do appeared first on The Family Finances.

The following is a guest post…

Buying real estate is a massive investment, both mentally and financially. Many resources go into the process, and it’s important that the preparation and execution of the transaction go as smoothly as possible. With a purchase usually on the order of $100,000, care needs to be taken to ensure that a prospective property meets the desires of the home buyer.

A critical area of the housing search to focus on is the inspection leading up to a sale. While this step in the process is commonplace in American real estate, it’s imperative that prospective owners pay particular attention to certain areas of the house. Major issues that go unnoticed can be very detrimental to the value of the house down the road. If you are considering the purchase of realty, make sure to focus on these areas of the property:

Roof

Not only is a roof the shelter over your head, it’s also a property feature that helps prevent major damage to the structure of your home. Water damage and other issues caused by a faulty roof can lead to severe problems with regards to both the interior and exterior of a house. When inspecting any prospective house, make sure to consider the roof a strong priority. Some red flags to look for:

• Poor shingle coverage or quality: if there are missing or damaged shingles, the roof is most likely worn to the point of being a legitimate problem.
• Water damage in ceiling: if there is noticeable water damage, bubbling or cracking along the ceiling lines of the house, the roof could be leaking.

Take a note: When it comes to assessing the roof during an inspection, it’s a great idea to ask the current tenant when their last roof inspection was and also for a receipt from any recent upgrades or replacements.

Foundation

For some reason, people tend to overlook the foundation when it comes time to assessing a property. The foundation is one property feature that can compromise a large portion of a house’s value, and therefore should be at the top of any inspection checklist. If you are scanning the home and notice any cracks, take a note of it and ask questions. Additionally, if any of the interior floors are sloped at an angle or the walls appear to be leaning at all, you could have some trouble on your hands.

Take a note: The foundation of a property is the backbone of a home. Make sure that the foundation of any prospective home is in great condition before making a purchase. The value and purpose that this part of a house provides makes this nearly mandatory.

Sewer line

The sewer is a feature that is both under noticed and very important. Without a well-functioning sewer line, you can only begin to imagine the problems that’ll be waiting. Sewer backups can potentially cause thousands and thousands of dollars’ worth of damage. Most housing inspections do take the sewer into account, but it’s important for you to take it a step further. You need to have a professional come over to test the structural makeup of the line and see if he or she feels any serious implications are on the horizon.

Take a note: When buying a house, the last thing you want is to start paying for major maintenance issues right off the bat. Even worse are the maintenance problems you could have prevented with a thorough inspection. Sewer line complications are one of these.

Potential homeowners should always make a calculated decision when it comes to buying a house. After all, it’s a massive financial obligation that is often the end of a long savings plan and the beginning of a new budget. Leading up to the actual closing date, many decisions have to be made. Taking an inspection lightly should not be one of them! Take your time and make sure the above features, and all others, are the quality you deserve.

This is a guest article from Tim Richmond. Tim writes about the mortgage industry, real estate, green building, personal finance and home ownership. He currently writes for the Native American home loan specialists 1st Tribal Lending.

The post Focus Points of a Home Inspection and Why They Matter Financially appeared first on The Family Finances.

Sell Your Stuff

If you’re anything like most people, your house or apartment is filled with “stuff”. Maybe you have closets full of clothes that don’t fit right or that you simply don’t like anymore. Maybe you had a hobby (fishing, photography, skiing, etc.) and have a lot of equipment, but you simply lost interest in it. I know after our little boy grew from an infant into a toddler, we sold a number of his baby things. We used the proceeds to buy toddler things, but you get the idea. I had an old bike rack for our car that we didn’t need after we purchased our van. It was just taking up space in our garage until I finally listed it on Craigslist and sold it.

The point is that if you take a look through your home, you’ll most likely find things with value that are just sitting there wasting away in a closet or attic. I realize that selling things isn’t a long-term solution to an income problem (after all, you’ll eventually run out of things to sell). But, if you’re just in need of some fairly quick cash, selling your stuff might just do the trick.

Turn a Hobby Into a Side Business

This is one of those things that I always heard about, but always had a hard time figuring out exactly how to do it. I think a lot of this depends on your personality. But there are certainly a lot of people out there that are very successful with taking something they love to do, and figuring out a way to monetize it. I know several photographers that are now semi-professional that started photography as a simple hobby. They practiced and worked hard at figuring out the best techniques, lighting, etc. and turned their hobby into paying gigs. The same can apply to all kinds of hobbies, from woodworking to sewing to baking.

Develop Your Skillset

One of the most promising methods of increasing your income is becoming a more valuable employee. I know this sounds simple, but generally the employees that are the most effective get paid more. You can do this a number of different ways. Depending on the type of career you have (or are interested in), you could go to school and get a degree, you could ask your manager for additional training, or you could look into apprenticeships from City & Guilds. We live in a very knowledge and skills-based workplace, and developing those skills is one of the best ways to boost your income.  Just putting in the effort to learn a new skill or to get certified in a skill can make a big impression on a supervisor.

The post Three Ways to Grow Your Income appeared first on The Family Finances.

The following is a guest post…

Getting a dog is an exciting and likeable thought; the idea of having a fuzzy, happy, and cuddly friend to come home to after a long day seems like a satisfying reality, and even though in most cases it is, you should only commit to a pet if you’re financially able to. Taking care of a dog involves more than giving belly rubs and playing fetch, and in order to give your new family member the best life you can, it helps to consider a few financial issues before you make anything official.

Vet Bills

Shots, vaccinations, and regular checkups are all things to budget for if you’re thinking of getting a dog, and that’s assuming that they live a long life free of any health problems; for a dog who develops a medical condition or suffers an accident, surgeries and medications can add up fast, and it’s important to understand what the lengths of caring for another life can stretch to. According to vetinfo.com, the average yearly cost for a dog’s first year can be as high as $1000, but after that (assuming that your dog is healthy) the costs should go down. However, it’s important to keep in mind what looking out for a dog’s health and welfare means before you make a commitment.

Food and Accommodations

Dog food generally isn’t too harsh of an impact on your wallet, but try to avoid budgeting for the cheapest kind of food you can get. These typically use fillers which aren’t the healthiest for your pup to consume, and the higher-end brands are usually full of fresher and more natural nutrients. (If you’re unsure what the best food is for your specific dog, any vet should be happy to answer your question.)

You’ll most likely have to make some accommodations when first welcoming your new pet into your home. Whether it be putting up a wireless dog fence into the yard, adding a dog door to you home, or even simply purchasing a dog bed and a few toys, it’s important to make sure you can afford all of the necessary luxuries before you get your dog. It’s much easier to bring your pet into a home that’s prepared for it, and if you make sure to get everything lined up beforehand, it will make the transition for both you and the dog easier to adjust to.

Replacements

Whether you plan on raising a puppy or providing a home for an older dog, keep in mind that sudden changes and new surroundings can bring out the nervous and anxious habits of any animal. Chewing and scratching are some of the biggest problems new dog owners experience, and you might be surprised at how many things you end up having to replace; electronics (dogs love chewing on cords), blinds, furniture, and clothes are all possible victims of a puppy attack, so be prepared to put some of your extra money towards things you’ve already bought.

Pet Deposits

Unless you own your home, it can tough to find a place that’s pet friendly, and even if you find a place that’s tolerant of pets, be prepared to pay a hefty fine. Pet deposits typically fall in the range of $100-$300, and that’s usually just for having the dog reside for you. Actual damages your pet causes typically aren’t covered in the deposit, so any carpet stains or chewed up cupboards will most likely be left up to you to cover.

Travel

Pets are great travel companions, but not all hotels are pet friendly. Similar to housing restrictions, it can be hard to find a hotel that accepts dogs without a large fee.  However, there are situations that arise where you can’t take your dog with you on your travels at all; business trips or international vacations can be hard on a pet owner, and pet boarding facilities usually charge by the day. Depending on where you live, prices tend to vary from $15 -$100 per night, so keep that in mind if you’re a frequent traveler.

Grooming

Most dogs need minimal grooming, but for dogs that are higher maintenance (such as poodles or shih tzus) grooming can be a big added cost to factor in. Regular bathing, haircuts, and nail trimming can all add up, and if the type of dog you’re after requires a lot of attention, make sure you will be able to afford all the odds and ends before you make a final decision.

Having a dog is an extremely rewarding experience, but it’s also a major responsibility. Even if you can give the dog all the love and attention it desires, looking out for your dog financially is a big aspect of being a reliable pet owner. Don’t let these financial issues deter you from pursuing your dream dog, but use them as guidelines to make sure you are in the right place to take care of another living thing. It might seem like a lot upfront, but spending money on what your dog needs is always a worthwhile investment; after all, the companionship you get in return is priceless.

About the author: Ron Rutherford is a writer with a passion for nature and a soft spot for Thai food. He currently freelances for Havahart Wireless, which specializes in progressive and humane wireless dog fences.

The post 6 Financial Things to Consider Before Getting a Dog appeared first on The Family Finances.

The following is a guest post…

5 Reasons to Improve Your Credit Score

Nobody likes to think about their credit score, and many individuals choose to ignore the subject completely. Many people are too afraid to even attempt making amends with their credit, but a poor score has the ability to negatively affect many areas of opportunity. If you’re lacking the motivation to take the plunge and start improving your score, here are a few reasons to help motivate you to get rid of the excuses and get your mind-set on improving your score.

Credit Affects Insurance Premiums

Insurance premiums are usually high enough, but poor credit can cause your rates to climb significantly higher. Using your credit score to determine a suitable insurance premium is a rather new development, and those looking to invest in a car or homeowners insurance policy are the most at risk for being judged by their score. Keep in mind, though, that some life insurance providers have started using credit as criteria as well, and this trend appears to be growing which is all the more reason to start improving your credit as soon as possible.

It might seem strange that an insurance agent would be using your credit to determine a reasonable premium, but the agent looks at your credit score as a quick representation of how responsible you are. They feel that the worse the credit is, the more likely you are to be a risk for the company, and the bigger risk you are, the higher premiums you’ll pay.

Your Ability to Take out Loans is Based on Credit

Having poor credit makes it hard for you to be able to borrow any money in the future because lenders look at your history in order to determine if you’re likely to pay them back. A poor credit doesn’t look promising for banks, and in most cases, your request will be rejected. On the other hand, if you are approved for a loan with an unimpressive credit score, your interest will most likely be extremely high.

Poor Credit Makes it Hard to Find Housing

It’s happening more often that landlords and apartment managers are checking potential tenants’ credit scores before allowing them to sign a lease and move in. If you have poor credit, it can make finding housing incredibly difficult, and even when credit doesn’t determine whether or not you can rent out a place, it can make the upfront cost of the deposit skyrocket.

Employers Check Credit before Hiring Employees

Although the amount of employers who actually check credit scores of potential employees is relatively low, it does happen. In the eyes of an employer, a credit score is a symbol of responsibility and accountability, and if your credit score hints that you don’t take your finances seriously, it can make them question how determined you would be to commit and perform on the job. While those judgments can be unfair and misconstrued, it is a method that more employers are utilizing, so that’s all the more reason to start bettering your credit.

Poor Credit Can Require Deposits on Utilities

Many utility companies require a credit check before they’ll set you up with their services, and if they feel that you’re credit reflects a possible risk of late or missed payments, you’ll be asked to pay a security deposit. This is often surprising for customers looking to set up their heat and power, but it’s something that more companies are starting to implement in order to lower their level of risk.

Unfortunately, your credit score is used to measure your reliability in many areas of your life, and whether it’s an accurate representation or not, it’s a fast and easy way others use to decide if you deserve their trust. Poor credit can severely infringe on your future, and it’s clear that the use of it among companies and places of employment is increasing. To put your own mind at ease, as well as help you pave a smoother path for your future, face your credit score head on and start taking the necessary steps to improvement.

About the author: Arlene Chandler is a freelance writer who loves helping people prepare for life’s unexpected turns. She currently writes about career advice, finance tips, and life insurance Australia from AAMI.

The post 5 Reasons to Improve Your Credit Score appeared first on The Family Finances.

The following is a guest post…

Eco-friendly appliances are usually underestimated because most people think they are ineffective or they work the same as regular appliances. The truth is that these appliances have a lot of advantages and it can really save a lot of money. If you want to learn more about it, continue reading and discover what eco-friendly products can do for you.

• Read the labels. A lot of buyers miss out on this one because the first things they check are the prices. The important thing is that they check the “energy star label” because that will tell if the product is energy-efficient. Keep in mind that the Energy Star label is different from the Energy Guide label. Energy guide labels are required to be on appliances because it will allow you to compare the energy consumption of the product. Also, it doesn’t immediately mean that once you see one on a product, it is already the most energy-efficient out there.
• It is important to get an appliance that will suit your needs. It doesn’t have to be very big or too small but it will vary on what you will need.

Here are some examples.

• Air conditioners. If you are going to shop for an air conditioner, you have to determine the size of the area that you plan to cool. If it is just small, get a small unit. Big units for small rooms are a waste of money and energy.
• Refrigerators. You should know the size of your family and the food that you’re going to put inside it. It is safe to say that large refrigerators take up more energy and money but one large one will consume less energy than getting two small ones.
• Dish washers. Get the ones with a light wash or energy-saving cycle to get the most out of it. This will use less energy, water and it will operate for a shorter period of time compared to other washers.
• Washing machines. If you have a small home, then smaller washers may be the best one for you. But you do loads of laundry all the time then you might as well get the bigger one. You may also want to look for dryers with faster spins because it will shorten the drying period.
• Eco-friendly appliances are usually a bit more expensive than the regular ones but a lot of people consider it as an investment. Why? Because it really helps you save money in the long run. The amount of money that will be deducted on your electricity bill may not be that much but if you add it all for quite some time. You’ll see that it is really doing its job.

Eco-friendly appliances help you save money by cutting down the energy consumption which of course, lowers down your bill. You may not see a huge difference at first but in the long run, you will find that these appliances are helping you save money bit by bit. You can do also do some research to find the best brands for eco-friendly products. You may also obtain reviews and opinions of several users.

Tip: Check your credit reports and monitor your credit score before using your card to make big purchases.

There is a lot to know about these appliances so go to your nearest appliances store and inquire about it now to start saving money.

About the author: Amy is an active blogger who shares interesting financial management tips over the web that encourages people to check credit score and credit reports regularly for a happy financial life.

The post How Eco-Friendly Appliances Can Save You Money appeared first on The Family Finances.

The following is a guest post…

Whether you are a first time buyer, or an existing homeowner, choosing the finance for your home can be difficult and even stressful at times. To help you to do so, we have compiled a step-by-step approach to selecting the right mortgage. 

Check your credit history

There are many reputable companies who provide credit checking services. Banks and other lenders will certainly be looking into your financial history when considering a loan. As such, it pays to have this knowledge in advance, primarily so you know that you will be accepted for a mortgage.

Work out how much you can afford to take out

Think carefully about how much money you (and your partner if appropriate) earn and your living costs on a monthly basis. Factor in any previous debts you are paying off, childcare, bills, food costs and social expenditure. Putting in the time to do so will leave you with a realistic amount that you are able to dedicate to a mortgage.

Compare different types of mortgages

The main types of mortgages are repayment, interest-only or endowment. Repayment mortgages consist of the buyer paying a certain amount back each month. The amount in question will vary according to interest rates. Interest-only mortgages are mortgages whereby you purely pay the interest on the debt during the life of the mortgage. At the end of the term, you are left with the lump sum to pay. An endowment mortgage is where a buyer uses an endowment policy to save money to repay the loan at the end of the term.

Shop around different provider to find the best mortgage rates

It can be tempting to take up on the first offer which sounds suitable. However, your hard work will pay off if you take the time to consider different mortgage rates. Some rates may appear higher, but will also include added benefits such as life or contents insurance, or a fixed interest rate for a certain amount of time.

Ensure you will able to pay the mortgage by seeking financial advice

There is still much to be said for speaking to an Independent Financial Advisor about your options before committing.

By following these tips, you will find a mortgage to suit your needs. Best of luck in your search!

About the author: Susie Francis is a newly married woman, searching for the best mortgage rates in the Toronto area. She is looking forward to finding the perfect house!

The post A Fool-Proof Approach to Mortgages and Financing Your Next Home appeared first on The Family Finances.

The following is a guest post…

Debt is one of the biggest causes of stress in life, and while it’s easy to put that in the back of your mind for a little while, receiving calls from debt collectors along with your monthly statements brings that attempt at obliviousness to a harsh end. As nice as it would be to be able to snap your fingers and have all of your debt magically vanish, that’s not likely to happen, but the good news is that you can relieve your anxiety and frantic thoughts by trying out these simple tips:

Be Aware

Many people purposely stop paying attention to how much they owe; it causes them to feel depressed and anxious, so avoiding the subject is a temporary fix. However, neglecting the problem doesn’t make it go away; it tends to makes things worse, and knowing how much you owe is the first step in eliminating debt. Open your bill, talk to the debt collector, and really become aware of how your debt has accumulated to the point it has. Understanding the “how” and “why” of your balance is an important step in making better decisions for the future.

Cut Your Costs

As obvious as this advice is, many people with an outstanding balance still continue to spend carelessly. It’s important to really analyze your needs and wants, and downsizing your expenses can be a huge factor in helping you cut your debt. It’s really quite simple to cut your costs down; canceling your cable subscription if you barely watch it, making coffee instead of buying energy drinks every day, and preparing your own meals instead of eating out are all great ways to save a lot of money. Sometimes it’s the smallest purchases that make the biggest dent in the long run.

Another important thing to consider for when you do spend money is to avoid using your credit card as much as you can; pay in cash or use a debit card to avoid increasing your interest rates.

Bring in Some Money on the Side

To put it simply, the less money you spend on frivolous wants, and the more money you have coming in, will leave more resources available to spend on paying off your debt. The trick is to get creative when brainstorming ways to earn some extra income. Examine your belongings and see if there is anything you could bear to sell off; furniture, jewelry (without sentimental value), or any spare electronics all can help accrue some cash, and it can be surprising to see how many items you have around your house that you don’t even use.

For something on a bigger scale, you might want to consider making some bigger sacrifices. If you own two cars, consider selling one of them, or if you live in an area that conveniently allows you get around by bike, think about being vehicle free for a while. Another thing to think about is moving into a smaller home as even a slight reduction in rent can help out immensely with paying off what you owe.

Dog walking, cleaning homes, freelancing your talents, or offering rides are all great ways to squeeze in part-time work on the side, and by having money coming in from a variety of sources, you’ll be surprised how fast your cash flow increases.

Set Up a Payment Plan

As much as you want to pay off all your debt at once, it probably won’t happen without the help of a lucky lottery ticket or a surprise inheritance, so it’s important to make a monthly payment plan. Look at your amount of income in relation to your collected debt, and come up with a realistic amount that you can set aside every month. Think of it as a necessary monthly bill just like you would an electricity bill or a rent payment; by factoring in a set amount you can afford, and eliminating the mindset that it’s an optional expense, you’ll start making some headway on tackling your debt. It might seem like small payments don’t make much of a difference at first, but once you start seeing your outstanding balance go down instead of up, you’ll feel much more optimistic about your financial future.

Cover Your Family 

One of the biggest stress factors of debt is the fact that it’s carries over even if something unfortunate were to happen to you. In order to avoid transferring the burden of your debt over to your family, consider investing in a life insurance plan. This might just seem like one more monthly payment, but the peace of mind associated with knowing your family would be financially taken care of in the event of your death is always worth a few extra bucks a month.

Debt causes anxiety and restlessness, and having that in the back of your mind can prevent you from truly feeling free and liberated. It doesn’t have to confine you, and even though it might seem as if it’s impossible to ever fully pay off, you can experience the reality and luxury of being debt free by breaking it down into a few easy-to-follow steps.

About the author: Arlene Chandler is a freelance writer who loves helping people prepare for the unexpected turns life can take. She currently writes about finances, career advice, and life insurance from Suncorp.com.au.  

The post 5 Ways to Ease the Stress of Debt appeared first on The Family Finances.