Getting out of debt is not easy. Debt is basically just money spent that someone didn’t have in the first place – so you’re left with a balance plus interest in most cases. You can’t live the way you lived when you initially got into debt.  This means you often have to change your habits and lifestyle in order to get rid of your debt.

The best action step you can take when paying off debt is to free up more money in your budget so you can put it toward your balances. Here are some of the best ways free up more money in your budget to pay off debt.

Limit Your Dining Out Budget

I really enjoy dining out, but when I’m paying off debt I purpose to limit this spending category and lower my costs. I still dine out even though I have debt, but it’s not often. This allows me to instantly save money.

It may be hard to just completely stop dining out, but you can try a few of these strategies to help you. Bring your lunch to work each day. Also, start trying to eat healthier. Restaurants often sell big portions and use ingredients that are not the healthiest. You may think that eating healthier will cause you to spend more money but it’s actually the opposite.

Shop for healthy and nutritious whole foods and look up delicious means you can prepare most nights. Cook in batches so you can take breaks or even share the responsibility with your partner.

You can also try cooking your favorite restaurant meals at home. Some restaurants even sell their sauces and seasonings in stores to make it easier. If you like sushi, it’s not hard to learn how to make your own.

When you do dine out, use gift cards, take advantage of deals and specials, and make a list of your favorite budget-friendly restaurants.

Let Go Of Subscriptions

Get rid of any subscriptions you have if you want to free up more money in your budget to pay off debt. This includes subscription boxes, non-necessity programs, your gym membership, etc.

If you can survive without them and still meet your goals, you might want to cut the costs at least temporarily. For example, you can still exercise and get healthy without a gym membership.

Make Your Own Coffee

Sometimes, small purchases like a daily cup of coffee can add up. Instead of heading to Starbucks or Dunkin Donuts each day before work, make your own coffee at home.

I once found a Keurig on the Facebook Marketplace for $35. I buy a few K-Cups each time I go grocery shopping and enjoy making my own coffee each week. If your employer provides free coffee in the office, hold out for that each day.

Lower Your Phone Bill

Switch to a prepaid service or family plan to lower your phone bill. Personally, I’ve never paid more than $50 per month for a phone bill and I know many of people who have also paid less.

Shop around and compare options. Also, really be honest about how much data you’re using and how often you’re making calls, You may be able to save money by choosing a plan with lower usage limits.

Don’t forget about watching the price of your phone. I know too many people who preorder the lastest phone and finance it for several hundred dollars or more. It makes no sense to pay interest on a cell phone purchase when you can utilize a sale price to pay for it in cash. Last year, I bought my iPhone new on Black Friday for just $100.

Make Your Home More Energy Efficient

Some people believe they can’t do much to lower their utility bills and this couldn’t be further from the truth. Having an energy efficient home can help you save money so make sure you have the right windows installed, proper insulation, and use a programmable thermostat.

These things may cost money initially, but you can still do simple things to start like unplugging electronics at night, turning lights off during the day, adjusting your water temperature, and wrapping your windows with plastic during the winter to keep cold air out.

DIY As Much as You Can

Go through your budget line by line to see what you can DIY to save money. Can you start cutting your own grass and doing lawn care? Do you really have to pay for haircuts for your kids? Is this something you can learn to do on your own?

The more self-sufficient you become, the less you’ll have to spend. Pick a few skills you’d like to learn that will help you save money. Who knows, maybe you can master a skill and offer your services to others to make extra money.

Get a Roommate or Rent Out a Room

I understand that this is not an option for everyone, but if your budget is tight consider trying it out. Having a roommate allows you to split your housing expenses and even cut your costs on utilities. If you have a spare room, you can rent it out on Airbnb or allow a local college student to move in for the semester and charge them rent.

Your housing costs are usually your biggest expense so finding a way to lower it can help you free up more money in your budget.

Summary

Paying off debt is easier and more motivating when you can afford your payments and even have extra money to put toward your balance each month. You may need to tighten up your budget while you work toward your goal, but it will be well worth it in the end.

Go through your budget line by line and narrow down which expenses you can lower to free up more money in your budget.

Budgeting doesn’t have to be hard, check out our article that teaches you everything you need to know in this article.