The finances and how being thrifty helps

Ireland has always been one of the poor places but it has gained stable finances in the last 20 years. Now, it has the second highest per capita income amongst all the countries in Europe. It is also the fourth highest in the world in the term of measurements of the GDP or the Gross Domestic Product per capita. It now ranks as the 42nd most expensive city to live in but still the cost of living is manageable because of the job standards there. However, as a result of the recession, Ireland’s property bubble has popped and so the accommodation costs have dropped too. This recession of 2007-2009 resulted in debt in many countries and Ireland is no far behind. The national debt is continuously mounting up (close to 1 trillion euro). So, there’s need for debt reduction.

Being thrifty helps in debt reduction

Being thrifty helps in debt reduction; as you are expending less you will incur lower debts. There are in fact various ways in which you can go thrifty. Being thrifty does not mean that you will have to give up on all of your luxuries. It is rather a way of lowering your expenditures.

  1. Budget – The most important thing that you need to do in order to lower your expenditures and save money is budgeting. Budgeting helps you to get a clear idea on how much your total income is and what your expenditures are.
  2. Cut down on unnecessary items – As you budget, you will also be able to find out specifically what are the things that you spend your money on. Now, in doing so, you will also be able to find out that all of these items are not necessary and that you can do without these. So, you might be able to cut down on the unnecessary items and save some money.
  3. Plan vacations ahead of time – If you think that you will like to go on a tour, plan it much ahead of time. You can search on the airline tickets from and to Ireland. Sometimes, you may even be able to get discounts.
  4. Take advantage of discounts and sales – When you go for shopping, find out if the shops are offering discounts and sales. This should be the case not only for the grocery items but also for clothes and books and other necessary items. This helps you to save on lots of money.
  5. Sell of items through yard sale – You can also get money from the items which are lying unused. Sell those off and get that extra money for debt reduction.
  6. Save money on gas and electricity – You can also save money on gas and electricity. You can so that by carefully using the gas and electricity. Remember to put off the switch before leaving the room or the house.

So, you can see that being thrifty does help you to save lots of money. You can then use that money for debt reduction by paying off your debts.

 

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