Paying off debt can be a struggle when you have limited funds to make repayments and keep a roof over your head. A savings account can be the cushion you need to help you through stressful financial situations. As of March 2020, only 13% of Americans have a personal savings account, according to Forbes.
Are you interested in saving money while paying off debt, but you are unsure where to start?
Below we’ve created a list of tips to help you make improvements to your financial health.
#1 – Start Small and Stay Consistent
It may not seem like much at the beginning, but saving small bills or making small transfers to your savings will help you in the long-term. Once you start saving, you’ll get in the habit of doing it more often. Over time, you’ll see your efforts turn into a nice nest egg! Saving money, even the smallest amounts, can make a difference when unexpected expenses occur. Remember to save what you can to eliminate the stress of falling deeper into debt.
Depending on your financial situation, it may be worthwhile to opt in to an automatic transfer each month with your bank. This is a convenient and proactive solution to eliminate second thoughts and ensure that money is going directly into your savings.
#2 – Create A Monthly Budget
If you don’t have one already, consider creating a budget for yourself each month. Having a budget keeps you from unnecessary spending. Take into account what your top priorities are, such as rent, groceries, and utilities. Then, add other payments like car or student loans and credit card debt as well. Subtract the total amount from your monthly income, and what’s leftover can be saved.
If you find yourself struggling to stick to your budget, set aside funds for activities you enjoy. It can provide a cushion, and any unused money can go into your savings. As long as you live within your means, you can continue to pay off debt and save money at the same time.
#3 – Track Your Spending Habits
Do you know where your money is going? You may be surprised to find out. Your spending habits could be hindering your ability to save and make it difficult to make ends meet. We suggest recording your small expenses to see how they add up at the end of each month. It may be difficult to see the weight of your spending at the moment, but a few dollars here and there can turn into a large sum before you know it.
Analyze your list of expenses, and decide if you can cut costs or add to your budget. Not all purchases have to be necessary, but understand the consequences of spending habits. Reducing costs will help you save money and keep you on your debt-free journey.
Bonus: Get A Debt Consolidation Loan
Lendah can help you find a debt consolidation loan that fits your budget, so you can pay off debt and save money. You may find it easier to maintain and stay on track with your finances because of the manageable monthly payments. That means you can live comfortably while paying back what you owe. With the money you save, you can even pay off debt early without any penalties! Making regular on-time payments can even help improve your credit score!
If you have questions about debt consolidation loans, speak to the compassionate loan matchmakers at Lendah. Our expert loan professionals will find the best terms tailored to your unique situation with fast approval and rates starting as low as 3.84% for amounts up to $100,000.
Get started today on our website. Prefer to talk in person? Call us at 833-453-6324, and we’ll get you connected immediately with one of our loan experts.