When working on cutting spending to improve your financial standing, there are times when hard decisions need to be made. And, as you look to manage and reduce your debt -- that can include a cut in spending while looking for other sources of income.
When figuring out how you can cut spending and reduce your debt, one of the simplest ways is to take a look at some of your average monthly bills, including your electricity, cable TV and phone charges. With a little flexibility, you can cut these expenses fairly easily:
Electricity – you can reduce your electricity bill by lowering the temperature on your thermostat and water heater, unplugging energy-hogging electronics when you aren’t home (like your computer, stereo and TV), replacing your air filters more frequently, and using CFL light bulbs (average savings: up to 20% of your monthly electricity bill)
Cable TV – if you live in an area where you can get basic channels for free, consider forgoing cable or satellite TV, and instead sign-up for Net Flix or renting movies from your local library (average savings: $50 per month, depending on your plan or provider)
Cancel your phone service and use your cell phone for all of your calling needs – a provider like Penny Talk ensures that you are still able to make international calls if you need to (average savings: $50 per month, depending on your plan and provider)
But, lowering your utility bills isn’t always enough to work your way out of debt.
Another option may be to pursue a promotion at work, a second job on the weekends or a few evenings a week, or even renting out another room in your home to generate additional income that in combination with you cutting spending you can reduce your debt paying down time.
