Save money to lower your stress
Stress for Success
May 13, 2008

Last week CBS News reported that the average American household’s credit card balance is over $16,000 at an 18% interest rate! Racking up credit card debt is certainly the most common way to get into a financial pickle. Buying on credit is painless. It’s paying the bill that can cause the pain.

If you’re experiencing substantial financial stress make your number one economic goal to charge less and pay off more of your debt. It’s the best strategy for getting back to financial security. Leaving your credit card at home and using cash instead will help you accomplish it.

Here are other ideas to save money and reduce financial stress.

§ The bottom line rule: spend less than you earn (duh!)
§ If you have high credit card debt consider consolidating it.
§ Distinguish between what you want and what you need. You may need a cup of coffee but you want a latte. To save money buy the regular coffee and put the difference into a kitty that helps pay off your credit cards. Avoid buying what you want so you can afford the things you need.
§ Decide why you want to buy something. If it’s to feel good, don’t buy. Shortly after buying it, you’ll habituate to it and it won’t bring you pleasure any more. Prove this to yourself. What have you bought that you just had to have at the time that you now barely notice?
§ Sell things you haven’t used for a year, including what’s in paid storage, and put the proceeds toward credit card debt and reduce your storage fees.
§ Find ways to make more money.
§ Shop farmer’s markets versus just grocery stores
§ Refinance your mortgage, car loan or other debt at a lower rate, if possible. Read the fine print, however. Know what you’re getting yourself into.
§ Search for less expensive insurance and lower your telephone and cable bills.
§ Drive older cars.
§ Save $100 a month, or whatever you can afford. Give up unnecessary things to save this. As soon as you can, increase the amount you put aside every month. Teach your children to start this in young adulthood. Teach them the power of compound interest.
§ Don’t buy something simply because it’s on sale. Also don’t spend money just because you have it.
§ Get involved with an inexpensive hobby to avoid the boredom that can fuel impulse buying.
§ Shop with coupons (www.coupons.com), use the Entertainment book, and buy things you “need” when they’re on sale.
§ Eat at home more.
§ Buy generic and off–brand products that you’re satisfied with.
§ Make a chart to first track the paying down of your debt and then the increase in savings.
§ Make yourself valuable at work by being easy to work with and keeping your skills current. Volunteer for jobs, especially ones that no one else wants.
§ Get educated on budgeting and saving (debtorsanonymous.com).

Next week we’ll look at the importance of accumulating savings.

Jacquelyn Ferguson, M. S., of InterAction Associates, is a trainer and a Stress Coach. E-mail her at www.jackieferguson.com with your questions or for information about her workshops on this and other topics and to invite her to speak to your organization.