In difficult economic times, it can be a struggle to live the lifestyle you’re accustomed too without running up huge debts. It is possible however to continue living a life of luxury without getting yourself into all sorts of financial problems, so long as you keep track of your expenditure and outgoings. By making simple cut backs with your expenses, you can save significantly to help you continue to the lead the life you wish. By using the simple tips outlined below, you should find yourself saving money and steering clear of debt.

1. Keep in mind why you want to be debt free

Imagine the different decisions possible in your life when debt free compared to the burden of having to pay out considerable money. Bearing this in mind should be an incentive to stay out of debt, or if you currently are in debt should encourage you to pay it off as quickly as possible. Living a debt free life is one with significantly less stress, and keeping track on the possibility of no long term debt in your life will certainly help with your quest.

2. Keep a Financial record of your spending and outgoings

Often people fail to keep track of their bills, but doing so can really help you get an idea of what you are spending where. There will usually be fixed bills which can’t be reduced, but it is important to look at any areas of expenditure with room for deductions, and try to buy cheaper things in their place without compromising the quality of your lifestyle. Keeping a budget of everything you spend, you will get an idea of what you spend the most on, therefore giving you the perfect opportunity to weigh up your most important expenditure vs that which is less necessary. Once you have gauged your monthly spending, this should be weighed up against how much you earn. In order to live debt free, your incoming money should be greater than your outgoings.

3. Turn The Heating Down

This is a very simple piece of advice, but one which can actually save you money with reasonable success. For every degree you turn the heating down (Celsius), you can save between 1 and 3% on your electricity bill overall. Though this doesn’t seem like a lot, it is likely to build a considerable sum of money in the long term. Be sure to only have your heating on when necessary, because wasting energy in this respect can be costly for the environment and your pocket.

4. Don’t eat or drink out as regularly

Eating and drinking out can cost a fortune, especially buying coffee from places like Starbucks or going out to nightclubs and buying drinks at extortionate prices. You can significantly reduce your ‘unrecorded’ expenses by choosing to take out your own food and drink. By reducing your trip to nightclubs you can also save significantly, or if you do go out try to not to buy as many drinks. For your work lunch breaks, you can pack your own food and drinks to save considerably.

5. Ride Your Bike

This is a very good piece of advice, one which contributes greater health, saves the environment and most importantly in the context of this article saves you money. Riding your bike for journeys within reason will cut down your petrol/diesel costs significantly, and reduce other running costs associated with your car. Often you can also carry your bike on public transport, making long journeys easier with this method by combining train travel with cycling for a more efficient journey. This is a positive lifestyle change which should see you saving money in no time.

Thank you for reading today, and hopefully these tips will help you avoid debt, or if you’re already in debt, help you save money to pay it off.

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