Many people complete their spending plan and think "I have made it! I know where my money is going so I am going to get out of debt in no time!" Unfortunately it is not that easy! Ninety nine percent of people still have to make another move in order to pay off debt. Without this move they could stay in the same place financially for a long time.

When we completed our spending plan I still did not have enough money at the end of the month to pay off debt quickly or even pay off debt at a steady pace. My expenses heavily outweighed the income coming in so there was only one option. Cut some expenses out or cut some back. Whenever I start to talk about cutting expenses out of the spending plan some people are no longer interested in paying off debt. Everyone wants to be rich, but no one wants to cut anything out!

It does not work that way! You don't get to keep spending the same amount of money each month that you were spending before the spending plan. You have to cut back in order to get ahead! So what should you cut out or cut back? Obviously not your water or your lights, but other items that are not a necessity. You will need to look at your spending plan line by line and see what expenses are wants and not needs.

Cable is not a need. Gym membership is not a need because you can work out in your home or outside when it is warm. That magazine subscription is not a need. In fact when was the last time you read an issue of that magazine? When you start to cut out or cut back you will start to see how much money you are saving each month. Money that can be used to pay off debt.

When we were paying off $50,000 of debt in two and a half years we started off cutting back on three items which included eating out and we saved $330 a month that we used to pay off debt. What could you do with an extra $330 a month? Would you be able to pay off some of your debt with that money? Now you see the power of cutting out!

If you want to get ahead of your debt and pay it off for good then you have to commit to cutting out expenses on your spending plan. Even if you don't have any debt you still need to cut back because you can use the extra money to build up your savings. Either way your spending plan that is in front of you today will be completely different next month!

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