Five Things Which Will Keep You Free of Debt

No youth actually aspires to mature into a debt-ridden person. Rather, people most often have every intention of staying free from financial debt whenever they start out in their adult lives. The trouble is that people can’t invariably keep control of all that happens in their lives which often lead them straight into consumer debt. Regardless how cautious you are; anyone can be taken by surprise with circumstances and end up struggling with their debts.

Fast movement from you will do a lot to reduce any damage and avoid any sort of long term damage if you’re suffering from debt or fear that you may end up in this situation. Continue reading to learn 5 easy approaches to help you stay free of debt.

Do Away with Pricey Habits

Everyone has one or two costly lifestyle habits. You will have a tough time determining which activities and habits you could minimize, especially when you really enjoy them, on a regular basis, to unwind and relax. It will be easiest to start with the money spent on venturing out to pubs, diners or fast food restaurants, movie theaters, concert events, night clubs, and other similar recreation hobbies. Make sure to exchange those hobbies with cheaper, equally fun substitutes. Examples of how you could try this are drinking with friends in your own home as opposed to in bars or clubs or watching a film in the living area instead of going to a movie theater.

Use Your Cash Instead of A Credit Card

Most people know, and any professional can verify, that charge cards are a significant cause of personal financial debt. Folks often don’t realize that their credit debt is growing outside of their ability to repay until it is way too late. Avoid using multiple credit cards. Just use one, if you need to, and repay the rest. It is wise to keep just one credit card in case of an unexpected emergency, such as a car accident or essential car and house repairs. If you’re able to repay the balance with your next monthly payment, then be sure to do so. Otherwise, pay off as much as you are able to, and continue until it is paid off.

Bring In More Money

Contrary to popular belief, it is possible to augment your wages without the need for totally changing up your daily life and schedule. This can be done in a few of many ways. It is possible to seek out a promotion at work, or even just some extra hours every week. Alternatively, you can take on a second job in the evenings or on the weekend. For those who have a marketable talent, you can even work as a consultant or freelancer in your spare time.

Cut Costs With DIY Projects

Before you hire someone for any type of repair and renovation jobs, just be sure you can’t do it yourself. You don’t have to be a handyman or even a regular do-it-yourselfer to find out how you can complete a straightforward job. Use the internet as a valuable source for learning strategies, techniques, as well as step-by-step instructions. Find out how you can do your own home improvement and maintenance jobs, and you may not even require any kind of help whatsoever.

Decrease Your Utilities Expenses

There are many ways that you can lower your utility bills without giving up your personal comfort. For instance, just turning the thermostat up a couple of degrees fahrenheit in the summertime as well as downward a couple of degrees fahrenheit during the cold months, can save you quite a lot in air conditioning and home heating costs. Next, cut out any kind of “premium” part of your current cable television package and keep to standard channels. Through doing these two things for three months, it can save you as much as three hundred dollars.

If you’re concerned about financial debt, understand that it’s not way too late. Adopting the advice outlined in this article can help you to improve your future financial situation, regardless of what it feels like at the moment.

Why Having a Budget Is the First Step to Getting Out of Debt

Many people constantly complain about being in debt but when you ask do you have a budget, do you know how much you owe, or when you suggest they cut back on expenses they look at you as if you are speaking a foreign language, or they just plain out refuse. I am always amazed at this, how can you ever get out of debt if you don’t change your mindset, if you aren’t willing to work hard and make sacrifices. There is no quick fix or cure all to get out of debt. It takes a long time to get in debt and you will not get out of debt overnight.

Many people do not know how to create a budget for themselves and many don’t even know where to start. Luckily I was taught at an early age how to create a budget for myself. I knew how much money I spent and how much I had left. This skill helped me when I became an adult and got into debt. How did that happen you say? Well, although I knew how to budget my money I didn’t have a clue about how credit cards worked. I thought it was free money but that is another article. Anyway, the first step to getting out of debt is creating a budget for yourself. The basic premise for creating a budget is to know what you have coming in and what you have going out, in other words, how much money you bring home and how many expenses you have (creditors, loans, utilities, cell phone, day care, dry cleaners, etc.). Make the budget flexible so you have room for unexpected expenses such as house repairs or car repairs. If you don’t have an emergency fund or savings to cover these expenses you can readily see in your budget what areas you can reduce expenses to get money to pay for those unexpected expenses.

Having a budget makes you responsible and accountable for your finances. Most people don’t think about how much money they spend per week or per month but when you sell all of your expenses written down on paper it provides awareness of your spending habits.

Once you create your budget you can easily see if you have too many expenses or if your money is not being managed properly. The easiest task to accomplish is determining if you have too many expenses, you simply cut down on your expenses and you will have additional money. To pay down some of your debts some expenses that can be reduced are: bring your lunch to work, cancel your pager, cable or cell phone service or get the cheapest plan available, carpool, catch the subway or bus to work, use coupons when buying groceries or shop at wholesales stores like Costco or Sam’s Club, and sell unused items at a yard sale or donate to charity.

If you are mismanaging your money or spending your money on wants instead of needs that is a little harder to overcome because this takes willpower and discipline. It takes 23 days to develop a habit so you have to practice good spending habits everyday. Each week it will get easier and easier. It also helps to develop financial goals for yourself, such as you want to get out of debt within a specific time period, you want to buy a house, take a vacation, whatever you goals are write them down and give yourself a target date.

Don’t get alarmed if you miss your target date for a financial goal because your main focus is changing your spending habits. Remind yourself that you are working towards achieving your goals. It may take some time but I know you can do it. Being debt free is worth the hard work and discipline required. Financial freedom is so sweet. Just think how nice it would be to wake up each morning: not worrying about having to pay a creditor, not worrying about creditors calling your house asking for a payment, being able to see yourself in a house or buying investment property or taking a vacation every year.

So many things are possible when you are debt free and live on a budget. I make a decent salary and only have one bill my mortgage and I still put myself on a budget every payday. Sometimes people say why do you worry about money and I say I always liked to be prepared because you never know what may happen.