The Money Diet

You get on a diet when you wish to shed extra weight.  When you need to cut down on excess expenses, you must go on a financial diet.

The best way to make the most of your money is to "trim the fat", or remove unnecessary expenses.  Using free grocery coupons is an easy way to save money each month.  The average American household carries over $7,000 dollars worth of dept, and this is unlikely to change unless we drastically cut back on spending.

To begin with, you must choose which expenses are the most important.  You must budget for necessities such as groceries, home payments, utility expenses, and payments used to reduce credit cards debt.  Try to pay a little more on your credit cards with the highest interest rates, however, if you can only pay the minimum to the cards with lower rates, then do that.

You must select which items are the excess "fat" in your budget.  If you cannot pay off each month what you owe, then in reality, any non-necessity item is “fat”.  Low-mileage SUVs, recreational Vehicles, and boats are all unnecessary "fat". Search out expenses to cut out or reduce anywhere you can.

If your money is being spent on video game consoles and online games, then it's best to unplug the machines and spend time in the real world. Swap your exclusive salon for a less expensive hairdresser until you are in a better position to pay for it.

While you are on a diet, you would replace fattening food like sweet cake with whole wheat crackers. While you are on a money diet you need to seek out other cheaper choices to replace life's luxuries. Generic grocery store brands are a cheaper alternative to brand names and designer clothing can be found at bargain prices in consignment stores.  Is it really necessary for you to have most of your clothes dry cleaned?

Take a pass on buying lattes from that fancy coffee place.  Skip the brand names at the grocery store and buy generics instead. Try going to a matinee, which is less expensive then going to the movies at peak times.  Also ask yourself if you must have cable TV and pay-per-view. Drop by the museum during its free hours.

Don't forget, that creating a better consumer lifestyle takes work.  Once you establish a routine though, you will find that even when you're out of debt, you will probably keep to better money habits for the long term.