How to Live Debt Free - 12 Steps to Total Financial Freedom

-Ancient Proverb

Are you finding it hard to make ends meet?

Wondering how you can squeeze more money out of your paycheck?

Worried each month that you will run out of money, not to mention having enough to set aside for retirement?

You're not alone. Many of us are feeling the pinch of inflation. With higher gas prices and housing costs reaching into the stratosphere, it's becoming harder and harder to save.

There's no doubt about it. The price of everything is going up. In addition, we are constantly being bombarded with enticing ads that tempt us to buy all sorts of things we don't need robbing us of the ability to save. We need to be more careful how and where we spend our money in order to be able to save it.

Being frugal isn't about deprivation. It's about finding ways to do the things that you want at a price that you can afford. Living debt free is about affording your lifestyle. In this, step 3, you will learn how to live within your means and get the most out of life on your existing income.

Coupon Clipping

You may not realize this, but groceries are right up there with your highest monthly bills. Most people spend more on food than they do on their car, making it the second highest monthly expense! The only thing you spend more on in a month is your home.

Maybe you used to laugh as you watched people pull out their coupons, but the truth is that coupons can save you hundreds of dollars every year. On average, you could easily save from 5% to 15% on every $100 of grocreries you purchase. Seek out supermarkets that will double, some super stores even triple, the face value of manufacturers' coupons.

Froogle

The Internet is a great place for bargain hunting-especially when you know where to look for the bargains. www.Froogle.com , is a shopping search engine powered by Google, offers just such a place. Use Froogle to:

Compare prices

Search within your price range

Get store ratings

Get product ratings and reviews

Prescription Drugs

Prescription drug costs can be outrageous, even when you have health insurance. Here are nine ways to cut those costs.1. Ask for Drugs with Generics

Drugs reps are good at swaying doctors towards the newest and most expensive prescription drugs, so you can't always assume that your doctor is going to prescribe the most affordable drug option. Before you leave the office, ask if the medication prescribed has a generic. If it doesn't, follow up by asking if there's a drug with a generic that would work as well for your condition. It's a simple question that could save a lot.

Want to be a more informed consumer? Pick up a copy of The Pill Book, and you can quickly check to see which drugs have a generic.2. Seek Samples

Doctors' offices and hospitals often receive samples of new prescriptions. If you doctor insists on a name-brand medication, ask if he has any samples that he could give you. With a bit of luck you could receive a full course of an antibiotic or a month's supply of a maintenance drug free of charge.

Did You Know? Pharmacies also receive free sample from drug companies. Check with your pharmacist to see if they have any free samples of over-the-counter medications that you need. This can be a great way to try out new allergy or heartburn medicines, among others.3. Request Coupons

Coupons aren't just for groceries. Check with your doctor and pharmacist to see if they have any coupons or rebate offers for the prescriptions that you take. Still no luck? Visit the manufacturer's website to request coupons by mail.4. Shop Around

You shop around for everything else, so why not your prescriptions? Before you have any prescription filled, call around to several local pharmacies to find out who has the best price on your medication. This is especially beneficial if you don't have drug coverage-as the base price can vary extensively from pharmacy to pharmacy.5. Go the Mail Order Route

More and more insurance companies are pushing the use of mail order pharmacies, so check with your provider to see if they offer any discounts for using such a service. Often, you can get a three months supply of your prescription for the cost of a single co-pay-a very good deal indeed.

6. Split Pills

If you are taking a tablet that comes in more than one strength (say 15mg and 30mg), you may be able to cut your medication costs by having the higher strength tablets cut in half. Talk to your doctor and pharmacist to see if this is a viable option for you. Most pharmacies will happily split the pills for you, but you can purchase an inexpensive pill splitter, if you need to do it yourself.7. Ask about OTCs

Many of today's over-the-counter drugs are former prescription drugs. Before you fill a prescription, talk to your doctor to see if an OTC might meet your needs.8. Use a Discount Card

No prescription coverage? Don't resign yourself to paying full price; instead check around to see if you're eligible for a prescription discount card with any organization that you belong to-say AARP or even your auto insurance provider (mine offers a discount card to all members).

No luck turning up a free card? Shop around for a paid pharmacy discount card. In most cases, the savings will more than make up for the cost of membership.9. Investigate Hardship Programs

Budget too tight to cover the medication that you need? Don't do without! Check with the maker of your prescription to see if they offer any hardship programs. You can often get your medication for free or at a reduced cost, if you can't afford to pay retail.

Dining Out

Sometimes there's nothing better than a meal away from home, but how can you justify the cost when you're committed to the frugal life?

Do you deprive yourself of the experience entirely?

Resign yourself to fast food when what you really crave is a meal at a nice restaurant?

Not at all. Learn how to eat out for less, and then enjoy your meal guilt-free. Here are some tips:1. Share a Meal

Restaurant portions are often huge, so consider splitting a dish with someone else. If you ask, many establishments will even divide your order onto two plates before bringing it out to you. The unexpected bonus for your frugal efforts? Fewer calories and fat grams hitting your waistline.2. Drink for Free

Drinks can really add to your tab, particularly if you're drinking something that is billed by the glass. To keep your check as lean as possible, order water (almost always free), or opt for a beverage that comes with free refills-soda, coffee, ice tea, etc. Can't do without that alcoholic beverage? Order one glass, and then stick to water for the rest of the meal.3. Clip and Save

Coupons aren't just for groceries. Flip through your local newspaper and junk mailers, and you're likely to find lots of restaurant coupons. Buy one get one free offers can make a big dent in the price of eating out, so they're worth the search time. For even more savings, consider investing in a school coupon book or an Entertainment Book, if they are available in your area.4. Go Kid-Friendly

Lots of establishments feature special nights where kids eat free with the purchase of an adult entrée. Do a little research to find restaurants in your area that do this, and you could slash your meal cost in half-now that's sure to make you and the kids happy.5. Skip Dinner

No, I'm not suggesting that you skip dinner entirely, but I am suggesting that you consider skipping dinner out. Eating out at dinnertime is often much more expensive that eating out at lunchtime-even if the same foods are on the menu. Make the switch to mid-day meals, and you'll avoid the higher price tags and probably the crowd as well.6. Order By Phone

If it's the restaurant food that you crave and not the restaurant experience, you can cut your costs by ordering your food to go. Many restaurant chains now offer car-side service, making it easy for you to get your favorite meals to go. How does this save you money? By taking the sit-down experience out of the equation, you can skip the drink order entirely and also avoid having to pay a tip-a savings of 15 percent by itself.