Debt - spending problem

[OrgasmicleBunny]

I don't have a shopping addiction, I have a spending problem. I know exactly how much debt I have at any given moment, I spend hours devising a plan to pay it. I make decent money at a stable career and I even work extra to help pay it off.

YET I STILL SPEND TOO MUCH MONEY!

WTF??

I need help.

I would say 90% of money goes to food

HOW ridiculous is that???

Every time I do get ahead, I slip back again, it's a never ending cycle for me, I suppose the spending thing has a lot to do with my food addiction, for which I'm TRYING to get help to no avail.

 

[desertslave]

I don't know if you're food shopping for just yourself, a couple or a family, but....

Plan your menu for a week. This alone gave me a better handle on my grocery shopping, and kept my impulse buys under control. If you have kids, DO NOT shop with them!!!! Well, depending on their ages. When my kids turned into teens I swear they wheedled more, but I turned it into a math class for them, teaching them (and myself along the way) about unit pricing and where the bargains REALLY are (hint, it's not always the items in the flyers).

Shed your brand loyalty, too. In most cases, store brands are cheaper and taste very similar. And avoid packaged/processed foods. It's healthier AND cheaper to make your own side dishes. Some convenience foods are a good thing, though, like plain frozen veggies. You can do many things with them and off-season they'll be a bargain. But buy fresh when something is in season, like fruits and special veggies. (I freeze POUNDS of asparagus and broccoli in season.)

If you have the space, buy in bulk at places like Costco/Sam's/BJ's. Family packs of meats are often less expensive than smaller servings, even factoring in the freezer bags you'll be buying.

Pack your own lunch instead of eating out. Buy a good travel mug and take your own coffee on your morning commute instead of giving your hard-earned money to Starbucks.

Make friends with a slow-cooker. You can buy less expensive cuts of meat, cook them slowly and end up with some really delicious meals. If you're solo, you can freeze the leftovers for future meals.

Overall, write a budget, build in a small cushion, and stick to it. Oh, and to help you create the budget, keep a money diary for a full week. Write down EVERYTHING you spend so you can understand where your money is going, even if it's 50 cents for a candy bar.

 

[Monazwx]

Pack your own lunch instead of eating out. Buy a good travel mug and take your own coffee on your morning commute instead of giving your hard-earned money to Starbucks.

This part MUST be highlighted!!! It has been the downfall of my budget for years!!! Spending $7 - $10 dollars for lunch, (and sometimes again for dinner) takes more money out of your pocket that you expect EVERY time. The coffee aspect is noteworthy as well. If one spends $5 (on average) for 'gourmet' coffee and $10 for lunch, at the end of teh week, that's $75, (not to mention if you spend on snacks, etc.)

Pre-plan your meals beforehand, so that you have tasty leftovers for work the following day.

 

[cute_nerd]

This part MUST be highlighted!!! It has been the downfall of my budget for years!!! Spending $7 - $10 dollars for lunch, (and sometimes again for dinner) takes more money out of your pocket that you expect EVERY time. The coffee aspect is noteworthy as well. If one spends $5 (on average) for 'gourmet' coffee and $10 for lunch, at the end of teh week, that's $75, (not to mention if you spend on snacks, etc.)

Pre-plan your meals beforehand, so that you have tasty leftovers for work the following day.

You said you had a food issue, and I don't know if it is related to weight or anything, but I can guarantee you that when you cut out the takeout food, you will lose weight. It's amazing how many calories and fat the takeout places have in their food. The one that got me- Arby's chicken salad sandwich has something like 1800 calories!!! In ONE SANDWICH!! That's over a day's worth of calories in one sandwich for many people. If diet isn't an issue for you, then skip this advice, but I am sure many people can relate to this one. I stopped eating out and noticed a difference right away.

I also recently started buying my yogurt in larger tubs instead of in the smaller containers and noticed I get more for my money. Then I can take that to work for lunch, and the plain vanilla makes a great fruit dip.

Hopefully this will help- if not for you, then for someone else.

 

[Billr26]

A credit card tip for you

I was young and got myself into a debt problem. I sought the advice of a very well off friend of mind (He had been in big time debt once), and helped me out with this great advice.

Rule # 1: ALWAYS pay more than the Min. payment. These are so low that it takes 20 years to pay off that purchase.

Rule #2: Pay off all new purchases for the month.

Rule #3: Get a ziploc bag, add some water and freeze your credit cards. This does not hurt the cards. They are still there if you really need them, but it really cuts down on spur of the moment buys.

Rule #4: Pay off your highest interest card first. Then take the money you were paying to them and add it to what you pay on your next highest.

Rule #5: NEVER take you credit cards to the bar. Pay cash. It will keep you to a budget for the night.

I used these simple 5 rules and got rid of over $10,000 of debt in less than a year on a low income.

Good luck!

 

[desertslave]

Bill, I just wanted to tell you that's awesome! My husband and I did the same thing with debt we 'inherited' from our ex's. It took a few years, but now we're totally debt free except for our mortgage. Life is good again!

 

[coastal-boy]

Rule #3: Get a ziploc bag, add some water and freeze your credit cards. This does not hurt the cards. They are still there if you really need them, but it really cuts down on spur of the moment buys.

I had to laugh at this one. But you know...it isn't a bad idea.

I used to drink 1-2liter bottle of soda a day. What is that? $1.25 today on average...$1.50? Nothing much right?

That is $456.25 saved at the end of year (or $547.50 if it is the higher amt). Saving $5/day by not drinking coffee in the morning saves $1825/yr.

Buy generic or store brands saves $20/week easy.

Plan your menu, buy staples and meat once every 2 weeks...buy your veggies, bread and milk every 3rd day (that way they don't go to waste). Stick to the menu. No extras...you won't miss them. Make it a family event to cook...giving you more reason to plan and stick to the menu.

 

[Billr26]

Bill, I just wanted to tell you that's awesome! My husband and I did the same thing with debt we 'inherited' from our ex's. It took a few years, but now we're totally debt free except for our mortgage. Life is good again!

Thanks for the props.

Congrats on getting debt free. It's amazing how much you can do when you pay cash and don't have the bills.

Enjoy life!

 

[Chicklet]

Some *great* posts here!

I have stopped taking my credit cards anywhere with me - they stay at home, on my bookshelf. I do not allow myself to put any impulse buys on my cards!

When I go out anywhere, I take cash. It's a lot harder to spend more money than expected if I only have a $20

I REALLY need to cut the coffee out. I need to bring my lunch to work. I need to STICK to the things I tell myself I NEED to do = )

 

[SweetErika]

OBunny, can you explain a little more about your spending habits? How are you spending 90% of your money on food? I mean, I know people who binge can spend the same amount as some alcoholics/drug addicts on food. Is that the issue, or are you just eating out a ton, really expensive meals or buying groceries you don't need?

Also, do you pay for most of your stuff in cash or with credit or debit? Have you written down every penny you spend for a month, like someone suggested?

Do you have credit card debt? If so, are you still using credit cards, and have you talked to the companies and/or a nonprofit credit counseling service about reducing your interest rate(s) and paying down your debt?

It's certainly not for everyone (or probably even most), but we buy everything possible on a credit card because it allows us to track our expenses really well monthly and over time and we like the incentives. HOWEVER, we never charge more than we can comfortably pay, and we always pay the full bill off monthly. Thankfully, we were both taught credit shouldn't be used to buy things you can't afford to pay cash for, so we've never been tempted to run up bills. We usually only carry about $25 in cash (actually, I do; Hubby usually only has a few bucks because he tends to spend cash), and we never go to the ATM or get cash back unless we need cash for something specific.

Food-wise, I watch prices carefully, shop the sales, and we rarely eat out (and when we do, we watch the prices and don't get extras, like drinks, apps and desserts!). Hubby has a small monthly budget for coffee and lunch out, but otherwise, he makes them at home. We keep snacks and water in our cars so we never need to stop for something out of hunger or thirst.

I always evaluate whether something is a need or a want, and I minimize the want purchases to things we're really going to use long-term and enjoy. That saves a lot of money and waste right there!

You might also consider cutting expenses like housing (could you do with a smaller/less expensive place?), clothing, beauty products, cleaning products (a lot of people buy the expensive brands, and there are far cheaper, healthier alternatives to most cleaning products), cable/satellite and entertainment (books, magazines, music, movies, activities...force yourself to use the library, share w/ friends and find free/cheap activities, instead of buying) and spend time and give thoughtful gifts instead of expensive ones. Is there any way you can cut your transportation expenses by riding a bike and/or walking more, using mass transit, carpooling, finding coupons for car repairs, etc.?

 

[fire_breeze]

There are some very good suggestions mentioned, especially ways of saving money.

I would strongly suggest that you write everything that you spend down for at least a week, ideally for a month. Even if it's a buck for a chocolate bar or a coffee. That way you know exactly what goes where and how much you are spending on rent, food, bills, personal effects, entertainment, etc. Then with that, create a budget, and add 5 - 15% cushion, for emergencies (such as you need more hair-ball capsules for you cat) and work with that. You can try freezing your credit cards, or using only one, or having your bank allowing you to spend X amount per week. Find a system that works with you and stick with it. But remember, unless you know exactly where your money is going, it is difficult to make a budget.

It's also important to create some measure of flexibility. We all need entertainment, such as renting a movie or having an afternoon out with a friend. If you create too strict a budget, then you'd fall off.

Good luck.

 

[toyotomi]

If you're spending too much on food then one thing you should do is stop buying prepared foods. If you are in the mood for steaks or for a roast, then go to the market and buy yourself a full loin, take it home and cut it into the individual portions that you want. Butcher your own meats from primals which are much cheaper per pound than the already cut portions bought separately.

Stuff like that can save you loads of money. Going a step further and if you want something like, say, dumplings.. then go make your own dough and your own filling and make them yourself rather than buying the frozen kind.

Yeah it takes time but for a ton of foods you can make them or partially make them days or weeks in advance, freeze them and cook them when you want them.

For general spending you need to budget. Set yourself an allowance of money you're allowed to spend and put all the rest of it into bills. Take some time and figure out how much you spend from paycheck to paycheck, and keep that figure in mind. Since food is a spending problem for you, decrease the number you normally spend on food by a reasonable amount and find ways to work in that new amount to still get suitable food. Decrease expenditures wherever you can and see how much money you have that isn't going into bills or essentials.

Take that extra money and give yourself a small portion (and I do mean a relatively small portion) as an allowance that you can spend however you wish. Then take whatever is leftover, and put that into your debt. By putting every penny you can into your debts you'll work them off much faster.

I'll assume you have some sort of loan you're paying off, and if that's the case you could look into having them bill you once every other week rather than once a month. If your income can support it that is. This will give you more payments over the year and will shorten the length of time you'll be paying off the debt. (that tip actually comes not from me but from an investment broker.)

Finally, if you do feel you have an addiction to food, then (regardless of what you may weigh as that's not the point) you could look into something like weight watchers. They at the least could offer advice and support on how to cut back on that particular habit.

 

[GoldenGams]

Two suggestions --

1) Pay Yourself First. Are you saving anything? If your job is part of a credit union, or if you're eligible to join one, set up an automatic payroll deduction. Trust me, you won't miss it.

2) Shop with a list. If something isn't on your list when you hit the store, it stays there, no matter how tempting the price!

It takes discipline, but it can be done. Good luck.