Debt Management and Debt Consolidation Part 5
by Clifton

After you got all this to work, tigtening and plugging all those holes that made you lose money; you find that you have some savings. Don't be tempted to spend it all, once in a while you can indulge yourself in some entertainment with your cold hard cash, the more you use you cash to buy something that you really want, the more you will appreciate the concept of saving because you are not buying on credit and you don't have to worry about the debts you are going to pay later. Sometimes you may want to watch the movie starring your favourite hollywood stars, think about waiting for a little while for the DVD to be out, you can watch it in the confort of your own home and save some cash on traveling to the cinema, buying the tickets and those popcorns. If you really want to watch it in the cinema with your love ones, budget it out, don't go with an empty stomach, you may be tempted to dine out after your movie in your favorite restaurant.

Think about the amount of money you will be saving without spending on stuffs that you can do without. But what to do with all that money? You can place it in your old shoe box, but I don't guarantee that it is fire-proof. The best place to store your cash is the bank. This time you are not withdrawing money from the bank but putting money inside. There is a loophole here, ATMs, you will be tempted to withdraw cash anywhere you are, maybe it is too convenient and all your efforts will be wasted. Try leaving your home without your ATM card, or a bank with limited ATM that is out of the way in your convenience. But the best advice is to put it in Fixed Deposits where financial institutions give out interest annually and to take out the money you got to go through a series of forms to be filled up, that may deter you from taking out the money. Remind yourself "DEBT FREE" !

Another method to set aside cash is to named on some empty envelopes like house $350, water bills $100, fuel $150, groceries $200 and so on. Whenever you got cash in hand, place some into one of them, but the draw back is, fire and burglary. So you have to consider this plan properly. Another way to save up is a piggy bank, you think that's childish, just wait and see. Everyday you will end up with some loose change in your coin pouch, throw it inside the piggy bank, you will be surprise how much you can save at the end of the month.

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