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Becoming Debt Free: Tactics and Ways To Make Extra Money

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Being in debt can add a sense of stress to your life that decrease your quality of living immensely. Debt can come from a variety of areas including bad decisions, student loans, and medical bills. Regardless of how the debt was accumulated starting to pay the debt off is important as it can directly impact your credit. Some people need to realize that it is possible that even working their current job that they will never pay off the debt they currently have. Picking up a job is easier than ever as many jobs can be done from behind the computer. The following are ways to save as well as make extra money.

Pay Off The Portion of Debt With The Highest Interest Rate

There could be multiple sources of your debt whether it is student loans, mortgage, or credit cards. Credit cards generally have the highest interest rate so knock out this debt as fast as possible. Doing something like taking $10 dollars a day you would spend on coffee or lunches for work and put it towards your debt. The money saved on the interest you are already paying will be immense. To avoid this in the future look into credit card companies that are the most customer friendly. At times if you miss a payment your interest rate can go up to 30 percent or more on certain cards. Do not overlook the fine print when signing up for a new credit card as a missed payment is a possibility as one might simply forget.

Cut Entertainment Costs

The amount of money that people waste on going out to eat for nearly every meal is vast. Even going to a movie can cost a family nearly $100 dollars if they have children and purchased some snacks. Cable TV can be replaced by a much more affordable streaming service which are becoming much more prevalent. Not going out to eat simply is not an option for some families as they are always on the go. Meal prepping can help with issue as there are just some days too hectic to cook or even think about washing dishes. This leads to a healthier diet as the default for many families is fast food or delivery.

Don’t Buy a Home With Your Max Budget

The maximum amount that a mortgage company will give you should not be considered your budget. This will leave you strapped for cash as these companies know you will have to make sacrifices in order to afford the home if your income does not change. Putting extra money monthly towards the mortgage can knock years off of the payments. There are more incidental costs when dealing with a home in comparison to an apartment or townhouse. For example, you can count on paying anywhere from $50 to $100 or more for someone to handle your pool chemicals/cleaning. Sit down and do a realistic budget for yourself so you do not do incredible financial damage to yourself by defaulting on a mortgage.

Freelance Writing

Freelance writing is the perfect way to make some extra cash and create your own schedule. Finding clients is not hard at all as there are multiple freelancer platforms that connect writers with clients. Price your services a little lower than you think they are worth at first to gain favorable ratings and a good start to your freelancer career. You will be able to raise these prices once you have become established. Most companies are willing to pay a bit more for a great writer that hits deadlines without needing extensive editing. Starting a blog can be profitable but you will have to generate quality content to gain a readership. You will have to put some money down but not very much as cloud hosting prices are extremely affordable. Have a pro design the site as well as a poor user experience can lead to people immediately leaving the website.

Virtual Assistant

A virtual assistant helps a person stay organized or with other tasks the person does not want to do. This can lead to full-time employment at times as some people utilize their assistants to the highest degree. You have to have good verbal communication skills as well as being able to convey something clearly in an email. Some executives have their assistants proofread their emails to avoid sending something with spelling or grammatical errors.

Paying off your debt will change your life and not paying interest on your debt will leave you with more spending money. Take a small step daily in order to reduce your debt as every penny counts.

Comments

  1. Mary Ambrosino says:

    Some great tips to make your finances stretch.

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