If you are like most people, you didn’t plan on getting into debt, and that’s exactly why you are in debt.  You didn’t make any plans at all.  Plan your debt strategy the same way you would plan a night out on the town or your route to work.  While you can’t become debt free overnight, you can make small changes to your daily life that will allow you to pay down your debt based on your plan.

Review current spending habits

As simple as it may sound, just being aware of what you spend daily, weekly, monthly and yearly will give you a clear picture of how money flows through your life.  It’s very easy to forget that the little things we buy each day add up to a significant amount of money over weeks and months. Set up a spreadsheet with categories that fit your life such as housing, food, health, day care, entertainment, transportation, subscriptions and memberships.  Add two very important categories called impulse buys and daily habits.  Over the course of two weeks, save every receipt, and each evening, enter the information into the correct category.

Develop a spending plan

You may be shocked once you have the data in front of you.  You will find that your $2 daily coffee costs you $60 per month, and if you add a bagel or muffin half of the time you may hit $100.  Do you pick up the daily newspaper when you get your coffee?  Check into having it delivered to your home or office for a significant savings each month.  What other categories can be reduced or even eliminated totally?

Learn to embrace your plan

Don’t think of this as a budget, but rather the way you choose to live your fiscal life.  Making coffee at home or purchasing a package of bagels are two very small ways to save money without impacting your life very much.  Make a plan for your future and stick with it and you will soon see the light at the end of your debt tunnel.