Top 10 Ways to
Generate New Money and Get Out of Debt

Figuring out how to generate new money and get out of debt is a top priority for many people.

Even though paying down a substantial debt may feel difficult and overwhelming, taking just a few simple steps can make a debt–free life a reality.

1. Think About How Much New Money You Want to Generate

When you're organizing your work schedule or contemplating a new job, think about your personal and household expenses and make sure you can earn the money you need to live comfortably.

Also, think about how many hours you can work while still having time for the things you enjoy doing, like spending time with friends and family.

If you are employed by a company, consider if you're eligible to work overtime. A few extra overtime shifts a month could make a considerable difference in paying off some debt.

If you are self–employed, think about how you can attract new business and increase your revenue.

Thirdly, look for ideas on how you can create additional streams of income that will assist you in generating new money.

2. How Much is Your Time Worth?

This is a very important question. When you're considering a job or operating your own business, you need to make sure you're getting paid what you are worth. Many people underestimate the dollar value of their work.

If you are worth more money, don't take jobs that pay significantly less unless there is a necessary reason to do so.

Try negotiating with your employer for an increase in salary, a higher hourly rate, or a performance bonus structure. You can generally negotiate a higher salary if you have experience in a highly specific field.

3. Use Public Transportation

Depending on where you live, the price of gas and parking can be quite expensive.

Think about alternative means of transportation.

Perhaps you can take a bus, subway or a train. Another idea is to consider car pooling with other people in your office.

This is typically one of the first ideas that people turn to when there is a transit strike in their city.

Check out the local bus or train schedules and if they meet your needs, consider selling your car to pay off some debt. Selling a car will eliminate a car loan, gas costs, maintenance fees, and insurance premiums.

4. Work Locally

If you work close to home you'll have lower transportation costs, shorter commute times, and therefore, more time to spend with your family. This can make a job worth keeping.

Working locally also allows you to run errands during lunch breaks so you have more family time on the weekends.

5. Budget Your Money

Make sure you know how much money you earn each month and exactly where it's going. Don't forget to figure in small costs like gas, dry cleaning, and snacks. Every dollar matters when you're trying to get out of debt.

Call your utility companies and ask to be put on their budget plans. Paying the same amount each month for electricity or oil is much easier than paying a $600 bill during the cold winter months.

6. Avoid Late Charges on your Bills

Avoid late charges on your monthly bills by using your debit card or automatic bank withdrawals to pay them off automatically.

If that doesn’t work for you, then setup a calendar with monthly reminders to pay your bills. I use my Calendar in Outlook and setup my reoccurring reminders to appear 7 days before each bill is due.

This will not only save you late fees, but it will also ensure that you maintain a good overall credit score.

7. Keep the Thermostat Low

This is one that I struggle with when the temperatures dip to minus 30 Celsius.

However, you will find that one of your heftiest bills will be the heating bill, especially if you live somewhere cold like I do.

Learn to wear layers of clothing and agree on a preset temperature with your family. Installing an electronic thermostat allows you to program the times and the temperatures so no one has to touch the thermostat.

8. Ask Yourself: Do I Need It?

Impulse buys can take a real toll on your cash flow. Before you buy anything, give it a second thought and discuss it with your spouse or friend. Can you get it cheaper elsewhere? Do you even really need it?

Walk away for a day and think about whether you really need to spend the money or ask the salesperson if the item will be on sale soon. But chances are you really don't need it in the first place.

9. Buy Good Quality Items

It might seem counterintuitive, but buying more expensive things that are of a higher quality can be useful when you're looking to save money. Usually good quality items wear out or break less frequently so you don't end up buying the same items over and over.

This doesn't mean you have to shop for designer clothing that's out of your budget range. Simply look for higher quality items that will last for several years. Look for clothing items that you can mix and match so that you are able to expand your wardrobe without spending more money.

10. Buy Locally

When you're looking to buy produce, take the time to buy from local vendors. Not only will the food taste better, but you won't be billed the extra transport costs and you'll be supporting local business. Look for a Farmer's Market in your local area.

Visit the local gift shop for that birthday gift rather than heading to the mall. Or have dinner at a local restaurant rather than a chain restaurant. You'll likely save money on gas while supporting your local businesses.

Being conscious of how much money you spend each month is critical to getting out of debt, but that doesn't mean you have to live like a hermit without any entertainment.

By generating new money and following some of the above ideas on how to save money, you will be able to get out of debt and and enjoy living your life!

Wishing you much success,