As everyone dreams to be debt free and live a life without constant financial stress, the reality is that it often feels out of reach. We fall into debt easily — with credit cards, loans, or unexpected expenses — but paying it off is always the hard part.
For example, it’s simple to swipe your card for groceries when your bank balance is low, or to take out a small personal loan when the car suddenly breaks down. These decisions feel harmless in the moment — even necessary — but over time, they snowball into balances that become harder and harder to manage.
And once the debt is there, the pressure begins. Minimum payments keep you stuck, interest piles up, and instead of moving forward, you feel like you’re working just to keep your head above water.
In this post, I’m going to share 5 unexpected ways to live debt-free — simple changes that can actually save you more money than you thought possible.
1. Automate Your Savings
Automating the process is one of the best methods of saving money. Automatically transferring a portion of your checking account to a savings account or investment fund will make sure that you are regularly saving money without even having to think about it.
This is a good strategy because it exploits what behavioral economists refer to as default inertia, i.e. once something is established, people will continue to use it without much effort.
Automate Your Savings:
When determining the amount to set aside as savings or investments, it is always good to select an amount that is comfortable but has an effect.
Begin by putting away a small amount of your income, say 5 or 10 percent, and then as your financial comfort level rises increase this amount as a percent of your income. This method will enable you to develop a regular habit of saving without necessarily having to feel too constrained by your current lifestyle. Over time, as you get you can
- Have a direct deposit of your paycheck to a high-yield savings account or an investment account in case you have a long-term objective.
- Track your spending and adjust your savings rate with budgeting apps such as Mint, which I personally find incredibly helpful for staying on top of my finances.
Ally Bank is a great option for automating your savings because it offers a high-yield online savings account with no monthly maintenance fees, allows automatic transfers from your checking account, and helps you grow your money faster through higher interest while removing the temptation to spend what should be saved.
Automating your savings helps you to avoid the temptation of spending money that was to be used to pay off your debts or save. This can save a lot of money in the long run. As an example, say you put away 200 dollars a month, you will have saved 2400 dollars in a year and with compound interest, this can increase further.
2. Save on Utility Costs by Being Energy Efficient
Your utility bills may be a big financial burden to you, particularly when you stay in an older house or you are not energy-sensitive. It is not only a money-saving solution but also a win-win situation because it helps the environment.
Reduction of Utility Bills:
Replace with energy efficient appliances. When purchasing new appliances, look out to see the ENERGY STAR label as these appliances are built to consume less energy.
Weather strip or caulk around windows and doors. This eliminates the entry of cold air and loss of warm air to make your heating system work less.
- Put in place smart thermostats that are able to learn your habits and automatically switch the temperature to save energy.
- Use LED light bulbs. They consume up to 80 percent less energy than incandescent bulbs and have a long life.
- think about solar panels. The initial cost may be expensive, but most governments have incentives and rebates that can render it a cost-effective option in the long term.
With these adjustments, you will be able to reduce your monthly utility expenses by a large margin, which can be used to settle debts or save up some money.
Energy Star is a trusted government-backed program that helps you identify energy-efficient appliances, lighting, and home upgrades so you can lower your monthly utility bills, reduce energy waste, and redirect those savings toward paying off debt or building long-term financial security.
3.Cancel Unwanted Subscriptions and Services
In the digital era, it is simple to get into various subscriptions without understanding the total amount of money spent. These are monthly subscriptions such as streaming services, gym memberships, and others that can chew your budget.
Opting Out of Unwanted Subscriptions:
Go over your subscription services on a regular basis. Ask yourself the question whether you actually use them or have you just forgotten about them.
Cancel the subscriptions that are not used. You should release a service that you have not used in months.
- Compare prices:It is common to get a better deal on the same services offered by either changing the provider or negotiating with the current provider.
- Bundle services as much as possible: Most firms provide discounts in case you subscribe to several services at once.
- Use free options:There are low-cost or free substitutes to many services, such as streaming and software.
Rocket Money makes it easy to identify, track, and cancel forgotten subscriptions by securely linking your accounts and showing exactly where recurring charges are draining your budget, helping you reclaim money that can be better used for savings or debt repayment.
As an example, when you cancel three subscriptions that cost 10 dollars each per month, you will save 30 dollars every month, which totals to 360 dollars a year. This amount of savings can add up to a significant amount over a number of years.
4. Sell Unwanted Online
Cleaning up your house does not only give you a clear mind but also gives you a chance to earn some additional money. Online sale of unwanted items is a fast and simple method of making money which can be used to repay debts.
How to Sell Unwanted Items
Clean your things and discover what you do not use or need any more. This is a process of going through everything you own, including clothes, electronics, books, and house items.
An example is that you may find some old t-shirts that are too small, some old technology such as a DVD player, or books that you have already read several times. You should be comprehensive and truthful when it comes to what you do not need or do not use regularly.
Take clear pictures and detail all the items. Give information about its state and accessories that it is provided with. Take clear pictures and well-lit ones that depict all sides of the item. As an example, when selling a book, you should provide the images of the cover, spine, and the inside pages. Write about the condition of the item; state whether it has scratches, stains, or other parts missing.
In case the item has accessories, e.g. charger to an electronic device, be sure to mention it in your description and also provide photos of the accessories.
Select well-known online marketplaces such as eBay, Craigslist, or Facebook Marketplace. These sites are proud of their large user base and have come up with buyer-seller trust mechanisms.
Both sites are strong in their own way: eBay is an excellent place to sell items of high value and provides detailed seller ratings, whereas Craigslist is a better place to sell locally and make quick sales.
Facebook Marketplace enables you to sell products in your neighborhood, so it is less effort to organize pickup or delivery. Before you start to sell, make sure you are aware of the listing fees, modes of payment and shipping available on each site.
Sell your products at competitive prices that are based on the market value. Have an idea of what is fair by checking the prices of other things that were sold in the recent past.
Be prepared to haggle. Customers will always be trying to negotiate, so have a bottom price and do not sell below it.
This process does not only eliminate clutter but also has a practical advantage in cash flow. Just selling some of your items can earn you enough money to create a big dent in your debt.
5. Get the Maximum Tax Return
The majority of people do not usually think of their tax refund as an additional source of money. But by educating oneself on the details of the tax code and making effective use of available deductions and credits, it is possible to dramatically boost the size of the refund.
This extra financial gain can then be used effectively to meet various needs, including repayment of existing debts, investment in savings accounts or directing the funds to other financial objectives. Learning how to maximize your tax refund can therefore be of great benefit to you other than getting a mere refund.
Ways to Get the Most out of Your Tax Refund:
- Maintain detailed records of deductible expenses in the year. This entails charitable contributions, health costs and business costs.
- Save in retirement plans such as IRA or 401(k). The contributions to these accounts are deductible and reduce your taxable income.
- Use tax credits, which give a dollar-to-dollar tax reduction. These can be the Earned Income Tax Credit (EITC) and the Child Tax Credit.
- Speak to a tax expert or rely on tax software to make sure you do not miss out on any deductions and credits you are entitled to.
- Fill your taxes early and get your refund earlier. Nevertheless, make sure that you possess all the required documentation prior to filing.
As an example, putting in $5,000 to a traditional IRA can reduce your taxable income by the same amount, which can raise your tax refund.
Assuming that you get a refund of $1,000 and pay it off immediately to high-interest debt, you will save on interest payments over the long-term.
TurboTax simplifies tax filing by automatically finding deductions and credits you might miss, helping you maximize refunds or reduce tax bills—extra money that can go straight toward eliminating debt.
Being debt-free does not mean that you have to reduce the luxuries in your life, but it means being smart and creative with your money. You can become financially free and worry-free by automating your savings, trimming down your utility bills, canceling subscriptions that you do not need, selling items that you do not want and maximizing your tax refund. All these tips though seemingly insignificant can accumulate to meaningful savings in the long run and help you get out of the debt cycle.