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Learn how to effectively put yourself on a spending freeze

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Posted at 1:07 PM, Jul 27, 2016
and last updated 2016-07-27 15:07:44-04

Financial expert Rachel Langlois with Cyprus Credit Union tells us why putting yourself on a spending freeze could be the smartest thing you ever do!

First off, what is a spending freeze? It is exactly what it sounds like - a period of time during which you freeze your spending. You have to take into account what you must spend money on, like electricity, water and vehicle. You will also want to stock up on things like food and personal hygiene items before you start.

  1. Decide ahead of time where the money you save will go – either to an emergency fund, a lump-sum debt payment or something else.
  2. Look through your freezer, fridge and pantry and plan meals for the upcoming two weeks.
  3. Check your inventories of other essentials like toilet paper, toothpaste, etc.
  4. Fill your tank up with gas and pre-pay any bills that will be due.
  5. Stop spending money for two weeks.

After those two weeks, decide what you want to do with the money you have saved! For more great tips and information, go here.