About ½ of Americans report they either avoid shopping altogether or shop only for those things that are absolutely needed, according to a survey sponsored by Citi. 72% of Americans say they have cut back on everyday expenses.
Since consumer debt peaked in 2008, Americans have chopped $922 million from their debt, or 7.4%, according to the Federal Reserve. Americans are reducing debt at a pace unseen in at least a decade, according to a recent Fed report.
How do we make these changes?
Change your words – instead of a temporary exercise in deprivation, view it as a lifestyle.
Have goals – “I’ll pass on purchasing this item because I want to go on vacation in June.”
Track Progress – Monitor your debts and vacation accounts. When you see that spending smart is getting you closer to accomplishing your goal, that’ll motivate you to keep going.
Make a windfall rule – When you receive a sudden increase of cash (i.e. tax refund, bonus, gift); make it a rule that these are used to paying off high-interest debt or savings.
Source: RIS Media
- Five Financial No-Brainers (turbotax.intuit.com)