“But I don’t spend much money on subscriptions!” you say. Really? 15 dollars a year for a lame magazine you never read, 69 dollars a month for Cable Tv, 45 dollars a month for a gym member ship you WISH you used, 15 a month for netflix, and 30 a month for internet.. Lets add this up.. 15+828+180+360+540=$$1,923..

It doesn’t seem like a lot of money when you are just feeding these companies your green Lettuce you worked so hard for. But it is a lot of dough you could have used for Debt, Saving, Investing, ect.

The best part is, it is super easy to stop this madness. Cut the subscriptions.

Cancel the magazine, buy only the issues you are really going to use. In my case, i like Offroad magazines, but i have an older vehicle and new articles do not always apply to my 4×4. So i buy only the issues jammed packed full of info for my Jeep (not many, they are all talking about the FJ Cruiser now. Lame) Thing is you will probably save money this way, when you go into a store to buy magazines you will have to shell out cash on the spot and will tend to not buy it.

Next off, Cut the Cable TV, if you are in debt Cable TV is your worst enemy. First off it is ridiculously expensive, secondly it really eats up your time. If you have scheduling issues, cutting TV is a sure way to get some of your life back. If you really like a show, buy episodes from iTunes for $2.99. If you want to get out of debt you can’t be living like a rock star.

Hitting the gym is great, if you are an avid gym goer, this is one you might consider keeping. Weigh the benefits. How many times a month do you use the gym? Does the gym have a daily rate you could pay? If you only go to the gym once a week, and the daily rate is 7 dollars, you will pay less than the 45 monthly gym fee. Use your brain on this one, and don’t become a lard ass.

Netflix.. Ahh targeting the laziness of Americans.. I consider myself an AVID movie watcher, and i think Netflix is too much. I hate contracts, i hate limits. So netflix does not get my approval. $13.99 a month for 2 movies out at the same time, and exchange them as often as you want. How many movies CAN one rent in a month? Unless you have TONS of free time, i would just stick to using a RedBox, you pay $1 for one night for new releases. Can’t beat that, oh and they are all over the place, mostly McDonald’s, so when you are cruising through the drive thru getting a lard Burger you can pick up a flick!

Internet! Please do not cancel your internet, that would be the equivalent of going up to the mountains and living under a rock. But what you can do, is find a better provider, who is cheaper, offers better plans, or is willing to negotiate.

Last but not least, most subscriptions method of payment is Credit Card.. So how do you expect to get out of debt if your card is being piled on each month by these worthless subscriptions?

I am huge on not having subscriptions. So huge that in my Gamer madness i sold my Xbox360 to avoid paying the $8 a month membership fee to play Online games, and bought a PS3 who’s online system is free. Yes i know that is not much money, but i am saving $100 a year.

I canceled my 10 a month gym membership because i was not using it, i work out at home, so i save $120 a year. I do not subscribe to magazines, Cable TV, Netflix, (or any online service for that matter),  gym, or Gaming System. I have my internet, and my web site domain. That is it.

Focus on the big savings at first, then get down to the small ones.

A reason I kept spending while trying to get out of debt is that events would come up, typically unnecessary events such as movies, and I didn’t have cash. I rationalized and considered my Credit Card was an option. This is equivalent to trying to rock climb as someone chucks boulders at you from the top. You’re not going anywhere.

You can’t! Forget about it all together. Leave it at home, somewhere safe, and somewhere that isn’t easily accessible. This might mean in the attic, garage, basement, or buried in the back yard. (I don’t recommend the latter).  Keep it out of reach. I used to keep my CC stashed away in my room and even though it was out of my wallet it was much too easy to pick up when a friend called to invite me out. By using psychology against yourself you can keep from spending. People are lazy, even myself. If it means I have to climb a latter into my attic to get my credit card, I’m not doing that. I’ll go cash in my coins at the coin star, before I hunt for my card.

You might not have to go to such great lengths as I did but consider the idea if you tend to dip into your card for any reason. Emergencies can be a struggle, going to the hospital, or forgetting about your car payment and spending all the money can put you in a vise. I advise you exhaust all other options before relying on your credit card.

If you know you will use your card to spend no matter what, shred it.

At least you’re not kidding yourself.  I, honestly, had to do this with one of my cards. It’s nothing to be ashamed of. I would actually give you kudos for committing such an act. The funny thing is, even with my card shredded up, I tried to remember the card number to place an online order for something I “needed” . It did not work out, but there is the proof right there. If I had not shredded the card, I would have spent more.

I bet if you asked your friends, who are in debt, if they are saving you will get a confused look, a “no”, or some BS excuse that makes no sense. You would be surprised by how many people will disagree with the fact that everyone should be saving, even those in debt.  It is even more surprising when you ask people if they have an emergency reserve to pay for any accidents while they pay off their debt. What happens when you get in a car accident, need to go to the doctor, or have to pay for your cars registration? Don’t tell me you are going to use that credit card you have been so ferociously paying off. That would be redundant. You’d do better rock climbing while someone chucks big rocks at you from above.

Not saving while paying off debt could be a major factor in why people get stuck on the treadmill. For those serious about personal finance and getting out of debt, I strongly advise you start socking away some money for emergencies. This can help prevent the “need” of using your credit card and going further into debt than you already are. This is a great article about saving money for an emergency fund, originally found on www.getrichslowly.com

The main reason people advise against saving while in debt is that credit cards interest rates are much more than can be earned in savings accounts. With the average credit card APR at 14.9% and online savings accounts APY at 1-2% you can see the credit card cancels out the interest earned by saving. I know I am not going to get rich by being in debt, even though I have a savings account that I add to frequently. It is just common sense.

Your credit cards are draining your money and you need to get rid of them ASAP. On the other hand, you do not have a reserve of cash for any unexpected events. This does not sound like a great situation to be in, trust me I know. I am suggesting a 75/25 approach of paying off debt and saving. After taking care of monthly expenses, use 75% of your left over money to pay off debt, and save the other 25%.

For example

I used these numbers for simplicity. Implement the strategy for your own Income/Expenses.