At Debt Wise Solutions, we know that creating a realistic budget is one of the most powerful steps you can take when paying down debt. Most people focus on cutting “wants” like dining out or entertainment — but your fixed expenses often hold the greatest potential for long-term savings. By reevaluating your recurring costs, you can free up hundreds of dollars each month to put toward your financial goals.
Understanding the Parts of a Budget
A healthy budget has three key components:
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Income – the money you earn or receive each month.
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Fixed expenses – your essential monthly costs such as rent or mortgage, utilities, transportation, groceries, and loan payments.
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Discretionary spending – non-essentials like dining out, shopping, and entertainment.
Your total spending (fixed and discretionary) should never exceed your income. The goal is to allocate your money intentionally, ensuring every dollar has a purpose — including your savings and debt repayments.
How Much Should You Spend on Living Costs?
Fixed expenses aren’t as “fixed” as they seem. Even essential categories like housing, groceries, and utilities have room for adjustment. Small strategic changes can help balance your budget and speed up debt repayment. Here’s how to start:
1. Review and Audit Your Monthly Bills
Many people overlook recurring bills as a source of overspending. But services like premium cable, streaming subscriptions, and unlimited cell plans can quietly drain your budget.
Take a deep dive into your monthly bills — internet, phone, insurance, and memberships — and total them up. Are there subscriptions you no longer use? Are you paying for overlapping services?
For instance, a family paying for multiple streaming services plus a premium TV package can easily spend $150–$200 a month. Add in phone and internet, and that total can exceed $400. Cutting or consolidating just a few services can make a big difference.
At Debt Wise Solutions, we recommend using a budgeting calculator or tracker to visualize where your money is going each month.
2. Optimize Your Grocery and Food Spending
Groceries are a major line item in every household budget. To reduce costs:
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Track your spending for a full week or month to see how much you spend on food, coffee, and takeout.
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Plan meals around sales and flyers. Build your weekly menu based on what’s discounted.
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Use coupons and loyalty programs. Small savings add up quickly.
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Cook at home. Preparing meals in advance helps you avoid takeout and impulse spending.
Meal planning not only saves money — it reduces food waste and stress. A well-planned week of meals can easily save a family $50–$70 compared to eating out.
3. Reassess Transportation Costs
Transportation is another area where “fixed” doesn’t always mean “unchangeable.” Ask yourself:
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Do I really need two vehicles?
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Can I take public transit, carpool, or bike instead?
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Can I pause my insurance or park a secondary vehicle temporarily?
Owning a car can cost thousands per year once you include payments, gas, insurance, and maintenance. Even small changes — like carpooling a few times a week — can bring real savings.
4. Negotiate and Compare Your Utility Providers
Don’t hesitate to negotiate. Whether it’s your internet, phone, or insurance provider, you may be eligible for lower rates or bundled discounts.
Call your providers, mention competitor pricing, and ask if they can match or beat it. It takes a few phone calls but can save you hundreds annually. If you maintain multiple accounts (like cable, internet, and mobile), consider bundling them for extra savings.
5. Be Strategic About Debt Repayment
Getting out of debt requires a plan. Here are proven strategies:
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Snowball method: Pay off your smallest balances first to build momentum.
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Avalanche method: Focus on debts with the highest interest rates to save the most money.
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Debt consolidation or management programs: Combine debts into a single, lower-interest payment.
Also, contact your creditors to request a lower interest rate or temporary relief period. If you’ve been a loyal customer, they may be willing to help — and every percentage point saved makes your payments go further.
6. Make Energy-Efficient, Budget-Friendly Choices
Energy bills are another major fixed expense. Try these small adjustments:
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Lower your thermostat slightly and wear cozy layers in winter.
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Use fans and natural airflow instead of running the AC constantly.
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Seal air leaks around doors and windows.
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Unplug unused electronics and switch to LED bulbs.
These steps not only lower your utility bills but also help the environment — a win-win for your wallet and the planet.
7. Get Help Balancing Your Budget and Managing Debt
Managing debt while keeping up with daily expenses can feel overwhelming — but you don’t have to do it alone.
At Debt Wise Solutions, our certified advisors can help you:
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Create a personalized, realistic budget.
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Identify where you can cut fixed expenses.
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Explore options like consumer proposals, debt consolidation, or repayment programs.
We provide judgment-free, confidential advice designed to help you regain control of your finances. Whether you prefer to connect by phone, email, or online chat, our team is here to guide you every step of the way.
Take control of your budget — and your future — with Debt Wise Solutions.
Start today by speaking with one of our debt specialists or completing our quick online assessment to see how much you could save each month.
