Opening a Debt Savings Account

~ Rob

I’ve opened a debt savings account which may sound strange so let me explain how my new account is going to work.

A debt savings account is where you save to pay off your debts. Every month I’ll place all my saving from cutting back and streamlining my budget into my debt account. Then at the end of the month or at regular intervals spend it on the debt I own on top of any minimum payments.

Using this saving method will help to clear debt quicker. To create your own:

1.    Open a New Online Savings Account.

2.    Prepare your finances – Do a budget and see where you can cut your expenses.

3.    Put the money you save into your Debt Savings Account.

4.    Regularly pay the money into your debt.

Running your own debt savings account like this will rid you of debt sooner. If you can spend with debt you can save to pay it off and turn your fortunes around. By savings up to pay off debt you can cross the finish line of debt freedom sooner.

Saving Money to Pay Off Debt

~ Rob

[Credit: This article is originally from Healthy Debt Diet. Used with kind permission.]

Clearing your debt fast involves finding ways to cut costs and reduce your spending so you can use that money to pay off your debts. You can also increase your income and pile the extra earnings into debt.

Since starting on my path to debt freedom I’ve reduce my outgoings in many areas and spent that money on my debts. Here is what I’ve done to save money for debt repayments, some of my actions may seem extreme to give up however killing off debt quick requires sacrifice:

  • First make your debt cheaper. Balance Transfer your credit cards to 0% interest free deals. Paying no internet clears your balance faster.
  • Find a better even a small 0.25% rate reduction adds up to massive savings over a long time period. If you don’t have a mortgage you could search for a cheaper place to rent.
  • Switch energy provider to reduce your gas and electricity bills at USwitch.
  • Buy cheaper alternatives where you can and consider second hand products. You’ll pay more for top brand names and the latest releases.
  • Avoid restaurants, takeaways, coffee shops and cook at home. Take a packed lunch or bring your own food to work when you can.
  • Cancel the TV subscriptions. I got rid of my Sky TV package, yes I missed it for a while then I adjusted. If cancelling your TV viewing is too much then try cheaper options like NowTV.
  • Shop around for better phone and broadband deals. Sim only deals save on mobile hardware costs.
  • Ditch Amazon Prime and those expensive weaknesses that you overspend on like gadgets, video games, clothes.
  • or least cut down if you drink too much. This will benefit your body and give you extra energy levels.
  • If you smoke then quit. Tobacco is an expensive and an unhealthy habit, quitting will save you a fortune and you’ll feel great.
  • If you’re not travelling too far or needing to carry heavy loads then walk or cycle to save petrol. It will also help you to keep fit.
  • Do you have a job where you could work from home a few days a week? Ask your employer and if it’s possible you’ll save on food and petrol costs plus the travel time to work.

Doing all or most of these will help you eliminate debt faster. I also opened a debt savings account where money is saved and then paid into my debt.

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Editors Notes:
I’m a massive fan of Adam and love the idea of creating a debt saving account to pay into your debts. I’m going to do the same to help  kill off my debt faster.

Better Budgeting

~ Rob

A few months back my money was out of control and I didn’t track any spending so here is my new monthly budget in a beautiful Excel Spreadsheet. I’ve just managed to balance the books thanks to selling some stuff on eBay.

You’ll notice there is no budget for fun anymore. 🙁 I seriously need to get a handle on my cash situation.

I have included the overdraft, my mate and Mum and Dad under debts but can’t reduce these debts until I have brought the credit card payments down. It’s a good thing friends and family don’t charge interest.

Saving on Dinner Money

~ Rob

Eating out costs a bomb. Not that I know the price of explosives or suggest you eat highly volatile chemicals for lunch. The fact is food on the move is expensive and adds to your monthly costs. So I’ve challenged myself to keep lunch and snack money to a minimum and cut down on  coffee break costs.

I can take a packed lunch to work. I’ve being doing it for just under 3 weeks. If you are on a budget taking sandwiches, pasta, homemade curry and other food from home is a cash saver. At first I felt silly and embarrassed but now I know it’s part of my budget plan.

I’m just not sure if I can reduce my coffee intake. I certainly need my coffee fix to get me going. Can I give up the daytime snacking, prepare an edible meal for dinner and stop drinking takeout coffee for a whole month? It’s a tall order so let’s find out.

I also attempting to reduce my sugar and ditch my unhealthy habits like too many biscuits, fizzy drinks and even cutting back on beer. Will it be possible? Let’s find out.

Are you willing to try it yourself? Add a comment below.

Breakfast, The First Meal of The Day

~ Rob

I have a confession to make – I Love Bacon and Coffee. Almost every work day for years I’ve bought a bacon butty and coffee for breakfast. Tucking into this delight is the highlight and pick me up I need in the mornings. Like many people I require a coffee fix to start functioning.

The problem is this not only does my breakfast cost me around £24 a week it also doesn’t help my waistline. Therefore I need to commit to spending and eating less starting with a cheaper and more healthy breakfast with maybe a bacon and takeout coffee on Fridays only as a treat.

My breakfast choices of takeout coffee and bacon butties have to end. L I still believe that breakfast is the most important meal of the day. I’ve never skipped breakfast, whether it was a sugary or greasy snack but now I’ve changed what I have for my first meal of my day.

My new breakfast is a bowl of Weetabix or toast which gets me through till lunch time and gives me an energy boost without the calories of a bacon sandwich.

I think eating out, takeouts and going out for restaurant meals should be a treat. I order takeaways and eat out because it’s quicker and easier than home cooking. Preparing your meal plans and eating at home will keep you healthier and save money.

Both will help motivate you as you save and lose weight. The downside and really habit I need to kick is the wake up morning cigarette. I’ve cut down during the day but hey nobody’s perfect.