You might think that saving money while you are still in debt just isn’t possible. After all, shouldn’t all that money you save go towards paying off your debt?
In actual fact, it is entirely possible to save money and pay off all your debts at the same time. It just takes a bit of careful planning and financial control on your part. If you follow all of these tips, though, you should find that you can grow a nice little pot of savings despite all your debt!
Reconsider Your Budget
Once you decide that you should try and save alongside making loan repayments, it is time to reconsider your budget so that it can reflect your new financial situation. If your budget shows that it is going to be quite tight to save and spend, you might want to consider loans for bad credit with monthly payments as these can increase your income and are easier to pay back than standard loans. Once you are clear of your monthly incomings and outgoings, you can then set a budget that shows you just how much you can save and how much you can afford to put toward loan repayments.
Try And Save Each Day
Rather than setting yourself a goal of saving a certain amount each month, you should endeavor to save each day. You don’t need to save a whole load each day – just a couple of bucks will do. This is useful as it puts all your spending into perspective. You will then find that you don’t make quite as many frivolous payments through the day, such as Starbuck’s coffees and shop-bought lunches. Over time, you’ll find that you have a lot of leftover cash that can be put in a savings account or towards loan repayments.
Consolidate All Your Debts Together
If you have a few different loans, you might find that it gets quite difficult to juggle all the various monthly payments. Plus, it can be extra stressful if you have numerous debt collectors continually contacting you for money. So, you might want to consolidate this debt into one large loan. That way, you will only have one monthly payment. This can help you get your debts under control so that you can then focus on saving some cash!
Set Yourself Mini Goals
It can be quite hard to try and get in the habit of paying off debt as well as saving. However, if you put in the hard work, you will eventually find that this habit becomes second nature for you. One way to make sure that you get into the habit is to set yourself mini goals. These should be saving goals that are realistic and achievable. For instance, you might want to pay off 10% of your debt within a month. If you reach these goals, you can treat yourself to a small indulgence, such as a meal in your favourite restaurant.
As you can see, saving while paying off debt is entirely possible!