Are you afraid to give up the good for the great?
Sacrificing involves moving away from the familiar and stepping into the unknown. Although you love going to fancy restaurants or wearing expensive designer clothing, these things are not contributing to your goal of living a debt-free life. By giving up on things that can easily be replaced with a better and cheaper alternative, you can get out debt very fast.
Here are the 5 sacrifices that can help you get out of debt fast.
1. Taking your car to work
Owning a car is more expensive than you think. Most people waste their time cutting costs in things like food, clothing, furniture, etc. Don’t get me wrong, these things can be expensive, but the biggest expense most people have is their car(after their home).
Things like gasoline, car insurance, and maintenance make owning a car very expensive. Alternatives like bicycle, skateboard, etc. are gaining traction and there is no reason why you shouldn’t try them out.
2. Relishing in comfort food
Comfort food is the second thing you need to sacrifice to get out of debt fast. Even if you eat out once every day, let’s say you spend $10 per meal, you end up spending $70 a week and $280-$300 a month. This is a huge expense and there are cheaper and healthier alternatives available to you.
Everyone knows how cheap fresh vegetables are; when bought from a grocery store. But there is an even cheaper alternative known as “Convenience foods”. This is a ready-to-eat meal which needs no preparation.
3. Buying everything ready-made
Instead of hiring someone else to do your work, consider doing it yourself. You don’t need to call the plumber or the cable guy every time there is an issue in your plumbing or electricals.
YouTube is a great free resource which can be used to learn basic skills. You won’t save a lot of money by DIYing but it is worth a try.
4. Having a night out with friends
How much did you spend the last time you wend out with your friends? I bet the number will not be less than $60. According to a report from BusinessInsider, a typical night outer spends $81 every time they go out. Let’s say you go out once a week, your monthly expense comes to $324. Which is crazy. The same article from BusinessInsider also confirms that a night out in a city like New York costs $122.
A premium Netflix plan costs $15.99 per month. A lot of people do not consider Netflix as a major expense as it is cheaper than conventional cable and has a lot of perks like account sharing, gift cards, discounts and options to downgrade the current plan. These features are so enticing that Netflix has become one of the most popular alternatives to cable TV. By watching TV shows in free TV streams online, you can save more than $192 a year.
If you cut costs on the above-mentioned things, you will easily save more than $2000 a year. This money can be used to pay off your debt. You indeed have to sacrifice on your standard of living but living below your means for a few years is a lot better than filing a bankruptcy.