My husband just got laid off and fortunately he qualifies for unemployment benefits, but this has made me think twice about every penny we spend. I have been doing my best to figure out how to cut out unneccessary expenses, how to continue to pay off our credit card debt and basically how to make do on less.

I have read alot to find ways to save and have found some great advice from TipHeroes.

So my tip is to read this article’s ‘5 fixes for financial woes, get out of debt fast’ by Stephanie O’Neill on LifeScript.com. Her story outlines her “5-step finanacial fitness plan.” I found each step very helpful.

1. Sort Out the Good, the Bad, the Ugly.
Figure out which debts to pay off first, figuring out which is ‘good’ debt and which is ‘bad’ debt. I really hadn’t thought about this before, but it makes perfect sense. I realized that I was much better off paying off my higher interest credit card payment than my lower interest mortgage rate which I had been slightly over paying each month.

2. Figure Out How Much You Earn And Spend.
With my husband laid off we had to reassess what our monthly earnings and spendings were and really figure out how to cut back to keep them more in balance. Now we track everything we spend so we know where our money is going. Didn’t take long to figure out that we were spending way too much dining out. So now we have cut back on that.

3. Lose the Flab.
This one involved a lot more research on my end, but it was worth it. I managed to get a much lower rate on my auto insurance, saving $45/month and I am still shopping around for cheaper cable services and homeowner’s insurance.

4. Boost Your Bucks.
Try to figure out how to earn more or even sell stuff that you no longer use. We are piling stuff up in the garage for a spring yard sale. And I am going to build up the nerve to ask my boss for a raise.

5. Prioritize Your Payments
This is kind of like 1., but talks more about Payday loans (thought that was only in the game of Life!) and when to file for bankruptcy. Working with the first 4 tips. I don’t think we have to worry about bankruptcy yet.

Hope this is helpful.

I defintely suggest reading the full article:

http://www.lifescript.com/Life/Money/Owe/5_Fixes_for_Financial_Woes.aspx