Slim Down Spending With A Money Diet

CENTENNIAL, Colo (CBS4) – Credit card debt is on the rise in the United States, and most financial planners recommend that paying that high-interest debt off is the best thing you can do for your financial picture.

Seven years ago, Eliza Cross felt she'd spent too much during the holidays, so she put herself on a money diet in January. She's done the diet every year since, and writes about it for her blog at happysimpleliving.com.

LINK: happysimpleliving.com

"It began as just kind of a 30-day break from spending," she explained.

You can do the diet any month, but Cross does recommend you put a 30-day limit on it. If you know there's an end, it makes it easier to stick to your goal. Her goal is to spend money only on her monthly bills and other essentials like groceries.

"We don't have pizza delivery. We don't go out to dinner. We don't buy things," Cross told CBS4.

CBS4's Britt Moreno saves money by making pizza with blogger, Eliza Cross (Credit CBS)

Instead of going out, Cross stays in making pizza at home and watching a movie from the library.

"One of the really important keys is to have some splurges through the month," Cross said.

Here are some tips for saving during a money diet:

Cook at home – cook double recipes and freeze half, use leftovers in soups or casseroles, and cook less expensive cuts of meat in a slow cooker.

Go on a scavenger hunt around your home – use the groceries you bought but never used like spices, specialty coffees, or canned goods. Also, pull out the appliances you've never used, like the foot massager you got for Mother's Day several years ago.

Use and maintain the things you already own – shine up a silver pitcher, or polish an old pair of boots

Rediscover your local library – beyond books, you borrow CDs, DVDs, an energy meter, and even e-readers

Finish something – when you're not spending you have more time to finish that project you started months ago and put down.

Declutter and give things away – if you find some stuff you know you're never going to use, donate or sell it. You can even make money on your money diet.

Cross even offers some special challenges to tackle while doing your money diet. She says she likes to figure out her net worth, by taking what you own and subtracting what you owe.

"It's really the only way to figure out exactly where you are financially and see the truth," Cross explained.

At the end of the month, you can expect to have some extra money. Cross says she's saved as much as $1,000 during a money diet.

"What I try to do is apply the money in a place that will make my net worth go up, so that would either be paying down debt or investing it … putting it toward savings," she explained.

Libby Smith is a Special Projects Producer at CBS4. If you have a story you'd like to tell CBS4 about, call 303-863-TIPS (8477) or visit the News Tips section.

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