Sure, skipping your morning coffee will save you a few bucks but if you really want to improve your financial health fast here are the top three budget killers you should focus on.
Housing
Housing can be a huge budget killer if you allow it to be. It is by far the biggest expenses you’ll incur beyond taxes.
If you’re feeling house poor you have a few options to lower this expense:
- Move to a less expensive area
- Rent out a room in your house
- Sell your home and relocate
I actually opted to by a trailer after I got divorced to keep my expenses low. The monthly payment was only $226 – far lower than anything I would have paid by renting or buying my own home.
Transportation
Cars can be another huge budget buster – especially if you have a car loan!
I completely understand the need for a car. I live in a rural area and there’s no way I’d go without one. However, if you have a car that is too rich for your budget or a loan with a high interest rate you need to do something about this problem.
Paying a ton of interest on a car that is more than you actually need is a pure waste of money. On top of that the more expensive your car the higher full coverage insurance will be.
To mitigate this problem you should sell your car and buy a less expensive one if at all possible.
Consumer Debt
The last expense that is likely killing your budget is debt!
Unfortunately there’s no magic fix for paying off all of your consumer debt or student loans. However, if you opt to lower your other expenses like housing and transportation you can make much bigger dents in the amount you owe.
I know how horrible it feels to be in debt and how great it feels to be debt free. It takes sacrifice and commitment to pay off debt but in the end it is completely worth it. Think of the financial goals you’ll be able to reach when you rid yourself of this expense! A good starting place is reading Dave Ramsey’s The Total Money Makeover. It retails for something like $15 bucks and has helped thousands of people get rid of their consumer debt. Its a good read, so .
pick up a copy if you get a chance
Making Sacrifices is Worth It
Life is a game of trade-offs. If you want more money to fund your financial goals you’re going to have to either earn more money or spend less money.
By focusing on these three budget killers you’ll be able to free up some money and rid yourself of financial stress.
What’s another big budget killer?