Year-End Budgeting Tips to Pay Off a Small Loan Faster

Life will sometimes throw you a curveball. This includes surprise bills and expenses. When that happens, you may need to take out a small loan. And though taking out a loan can seem like a daunting proposition, there are proven budgeting methods to help alleviate the stress associated with debt.

Use the 50/30/20 Rule

There are many different ways to create a budget. However, one of the most common and effective is the 50/30/20 method. The straightforward plan states that you use 50% of your income for necessities, 30% for “nice-to-have” items, and 20% for debt payment. This allows you to set aside money each month to pay off those small loans.

Negotiate Your Bills

Many people don’t know that their monthly bills can be lowered with a simple phone call. That even includes utility bills, such as electricity, gas, and phone costs. All it takes is a call to your provider and asking if there are any ways to lower your monthly bill.

This eliminates the surprisingly high bill that accompanies the colder autumn and winter months, helping you to pay off a small cash loan more quickly.

Reevaluate Monthly Subscriptions

Nowadays, it’s easy to rack up monthly subscriptions without even realizing how expensive it can become. For example, there are times when you might be paying twice for the same streaming service because you simply forgot you already subscribed. Looking over your expenses and writing down all of your monthly subscriptions can be an eye-opening experience. You can easily find ways to cut costs by just evaluating which subscriptions are actually necessary.

Utilize Meal-Planning To Cut Food Costs

How many times do you come home and feel too exhausted to cook dinner? This could lead to ordering take-out or going to a restaurant, which means you’re spending extra money that could have easily been saved. That’s where meal-planning comes in. All you have to do is plan what meals you want to make for the upcoming week. Then, perhaps on Saturday or Sunday, you can go ahead and prep (or even fully cook!) those meals. This allows for the stress of coming up with a dinner plan to fade away. And by reducing the amount spent on take-out, you’re saving quite a bit of money each month.

Earn Extra Income

Sure, it may seem daunting to get a second job. However, there are options to earn extra income that are incredibly flexible and offer a clear way to earn a little extra money to help pay off a personal loan. There are gigs such as drive-share, grocery delivery, and many more that allow you to work your own schedule and earn extra income. This is also an opportunity to look around your house and see if there are any items that are gathering dust that could possibly be sold online.

While budgeting and tightening your purse strings can be an uncomfortable and somewhat intimidating task, the above tips can help ease your worries and allow you to enter the new year with a fresh start. By changing how you budget your money, you can eliminate the worry that is sometimes associated with taking out personal loans. All it takes is a plan, some quick phone calls, and a little discipline. Remember, every dollar counts.