what is the best way to save money when your debts exceed your earnings?

Answer 1

Write down your expenditure from highest to lowest in that order. You will find only 20% of the items would be costing 80% of your expenditure. It may be your room rent or week end tours etc.,- that is where the expenditure has to be minimised. You will find 20% of the expenditure will be from 80% items. So no use curbing them, if at all. Yes apply Paretto Analysis.
VR

Answer 2

Don't eat out, if possible car pool, or use public transportation, do not rent or see new movies, borrow from friends, join a club i.e. Sam's , Costco, something like that. Get a relative to cut or trim your hair or a friend that will do it for free, cancel all subscriptions, shop only by lists, must have(s) and get only things on the list. Clean out your closet and see if your friends or neighbors want to have a 3 -family garage sale. If time allows add a part time job with an additional 10-20 hours a week. Try Target, Walgreen's, and mos drug stores. This may be hard but it will give u same extra cash to put towards eliminating one debt. Try to mow some elderly neighbors lawns or even do your own car repairs, plumbing repairs, or get cheaper mobile phone plan, or get rid of mobile and get a pager until time fits. Actually cut up credit cards, all but one. Walk dogs in your area or even offer to dog sit for vacationers it you have the resources. Hope this helps! I actually helped a relative get even with debt and after 6 months she was able to put more money into savings.

Answer 3

Check out the bottom idea first. I just submitted this answer for someone else, but, it looks like you could use it also.

Two ideas
--Most of what has been said is valuable, however, to pay off your debts quickest use the following formula. Start with the amount owed to each creditor and divide this by the minimum payment required. For ex., owe $500.00 and must pay $50.00. This gives you the result of 10. Do that for each creditor that you owe. Any amount that you pay over the total of minimum payments is sent to the creditor with the lowest number. When you pay off the lowest number creditor, then move on to the next lowest number, etc. The person who told me about this read it somewhere and then did the math by hand to verify it. Disregard the different interest rates. For some reason, this works.

--Read the book "Your Money or Your Life" by Dominguez and Rubin. It is the most natural way that I have come across to change your spending habits and feel good about what you are doing.

Good Luck with changing your ways.

Answer 4

You might want to consider a consolidation loan...and then revamp your budget...cutting out all things unnecessary; until you can get it turned around again. There is a lot information about budgeting your money to pay off your high interest debts first, paying off the smaller ones as soon as possible, and cutting your expenses down...all on the web. You can even re-negotiate your interest rates on credit cards and such. It's a struggle; but it is worth it in the long run.

Answer 5

You need to eliminate your debt before you can actually start saving. It is simple accounting; Revenue-Expenses=Income (or in your case income to be saved). Best of Luck!

Answer 6

invest a small portion of your earnings in stocks if you are willing to take certain amount of risk. this way u can have returns on your investments to pay off your debt.

Answer 7

read some useful articles on money and savings

Answer 8

pay off the highest interest debts first.

Answer 9

reduce your debts. eliminate all but essential purchases

Answer 10

Don't buy too many stuff. I think that is the best way.