Part of our 2013 plans is to end this year debt-free.
I’ve been reading a lot of helpful tips and hopefully I will be better in handling our finances this year. It will hurt a bit but I want to sleep without worrying so much about our debts.
I realized that it’s not “lack of income” but “overspending” that’s been causing this plight. Given this fact (and realizing the wrong I’ve done in the past), I decided to cut back on the following:
- Eat outs – Right now we eat out twice a week, P1000/meal at an average. So P1,000×2 = P2000/week or P8000/month. Quite an amount, right?
- Movies – No more movies unless we get tickets for free. Even so, the cost of going to the cinema and the popcorn meal would still cost me a huge amount of money. Each popcorn meal costs around P150x2 or 3.
- Magazines – I can find better articles online. Each magazine costs around P100 – P125 so not buying anything would save me around P1200 – P1500/year.
- Convenience store purchases – I spend so much on ready to eat food but not anymore. I will no longer purchase from convenience stores unless my life depended on it. Each little purchase accrues at the end of the day and guess what, it still surprise me. Hay.
- Clothes – I splurge on my kids clothes and part of this frugal living plan is to stop this vicious cycle. No more eBay deals and mall purchases (unless of course it is their birthday or the Holidays).
- Toys and bags here and there – Oh the “guilty treats”. I no longer want to feel guilty – I am with them 24/7, I provide them nutritious food and send them to a good school so why I should I give them guilty treats?
From now on, I’ll stop living up with the Joneses. It is our life and my kids’ future that will be put at stake if I continue to do so.
How about you, do you have any plans in cutting back on anything?