Month 3 is crucial. This is the first month you’re going to make changes. The main thing to remember when you reduce expenses and debt is to not make any unrealistic spending cuts at first. Pick four or five problem areas, such as restaurants, clothes, and hobbies. Work on reducing a couple of expenses each month.
Get in the habit of smart spending, making decisions before you spend. Ask yourself, “Is what I want to purchase worth the money I lose for my family’s and my future goals?”
Start Reducing Debt
Avoid making only small minimum payments on credit cards. It can take up to ten years to pay off your current balance. If you charge $30 for dinner, deduct that amount from your checkbook when you get home. Pay the full amount on your credit card bill when you receive it. This strategy will make you think twice about casually dining out. Also, ask credit card companies to reduce your interest rates and forgo fees.
Begin paying regular expenses automatically. Have expenses, such as insurance premiums deducted automatically from your paycheck or bank account.