Part of getting out of debt is learning how to reduce your living expenses. The best way to do that is to figure out where your money is going. There is show on television called �Big Spender� and the shows host, Larry Winget, helps serious over spenders get their financial lives back on track. He does that by evaluating the spending habits of the people he is helping. He tells them how much they spend on unnecessary expenses, such as; eating out, personal care (hair, nails, etc.) and clothes, among other things.
Looking are what we spend our money on, may reveal some things we were not aware of. It may also enlighten us to places where we can save money. Some of the things Larry recommended that his �big spenders� cut out back on are as follows:
- Eating out was usually cut back to $0.
- Personal care was set at $50 monthly.
- Clothing budget was set to $0. Many of the people had thousands of dollars of designer clothes in their closets that they were asked to sell to pay their bills.
- Most of them were asked to turn off their cable.
With the money they saved by cutting back on these expenses, they are asked to put the extra money towards paying off their debt. After 3 weeks, most of Larry subjects have done pretty well with their new plan, but staying out of debt takes long-term changes. Only time will tell if these people can may the necessary changes to get out of debt and stay out of debt.
