Key Steps To Take To Become A Self-Made Millionaire (2 of 4)

Tackling Student/Other Debts

The second largest debt in America is student debt. These debts are way beyond the car loan payments and credit card debts we have and need to pay off as quickly as possible. On average, an individual spends 21 years to pay off this specific debt. And just like with interest rates on credit cards, student loan interest and payments in general will eat up a lot of your cash.

The best way to tackle this debt is to follow these specific steps below:

1. Determine how much you owe and who you need to pay it to. List everything from family, friends, federal loans, bank loans, etc.
2. Rank all your debts from highest priority to lowest. Highest being the ones with the highest interest rates.
3. Find a personal loan calculator and determine what’s the best payment plan you can take.
4. Put more money towards the high priority loans first and work your way down. This will save you money long-term.

This method is great for handling not only student debt, but all of your debts in general. When you have them all organized, it’s easier for you to tackle the debts that you owe. Furthermore, the more debts you tackle quickly, the faster you can pay off student debts.

Eat Out Less

With debts all sorted, the next thing is to pick up other spending habits. One of the most common – and expensive – habit is dining out. There are many sources out there that say that restaurant food costs at least 300% of the price of all the ingredients you’d get at the grocery store. In other words, no matter where you dine, what you’re getting would’ve been cheaper for you if you made it at home.

Cooking at home is really cheap when it comes down to it. Not to mention it can be pretty fast and simple too. So there is no excuse for the lack of cooking skills.

You can also double down on the savings with this idea by doubling the recipes. With that, you’ll be able to have some for dinner and then you can have leftovers for lunch. If you’ve got multiple mouths to feed, then don’t be afraid of buying food in bulk.

Look For Cheap Groceries

And on the note of food, another way you can save money is to look for cheaper groceries. The savings are not going to be as mind-blowing, but a little can go a long way. On top of that, the price differences can be pretty significant with higher-end stores marking up prices by a couple of cents to even several dollars than what you’d find at bargain stores. You’d be surprised by the price differences of grocery stores if you shop at a grocery store a few neighbourhoods down.

If you want to get the best deals though, you want to be making a list of the items that you buy on the regular. Pay attention specifically to the foods that are prepared like sauces, pre-made salads or frozen meals.

From there, take a few weeks or a month for buying your biggest purchases at various grocery store chains around the area. Ideally, buy groceries for the full week and keep the receipts or note the prices of things. Once the month is over, look at the prices of the foods you bought and compare them. Find the cheapest one and make the switch.

As I said, you may not be making a huge saving, but if there is a $10 difference between stores, you’ll save yourself a good $520 per year.

Consider Generic or Store Brands

This step can save you a lot of money in the long run as well, but it’s especially helpful when you’re looking for over-the-counter drugs, beauty or skincare products. You can consider premium brands, but many charge higher prices due to the brand, whereas the generic brands don’t do that. What’s even cooler about them is that they may be even better or just as good. To figure that out, all you need to do is check the ingredient list. As you’ll note most of them are literally the same sans for a few minor differences.