Many people constantly complain about being in debt, but when you ask them if you have a budget, do you know how much you owe, or when you suggest they cut expenses, they look at you as if you speak a foreign language, or they just refuse. This always amazes me, how can you get out of debt if you don’t change your mind, if you’re not willing to work hard and make sacrifices? There is no quick fix or total cure for getting out of debt. It takes a long time to get into debt and you won’t get out of debt overnight.
Many people don’t know how to budget for themselves, and many don’t even know where to start. Fortunately, at a young age I was taught how to create a budget for myself. I knew how much money I was spending and how much I had left. This skill helped me when I became an adult and went into debt. How did that happen, you said? Well, even though I knew how to budget my money, I had no idea how credit cards worked. I thought it was free money but that’s another article. Anyway, the first step in getting out of debt is creating a budget for yourself. The basic premise to prepare a budget is to know what you have going in and what you have going out, that is, how much money you bring home and how many expenses you have (creditors, loans, public services, cell phone, daycare, dry cleaning, etc.). Relax your budget so you have room for unexpected expenses like home or car repairs. If you don’t have an emergency fund or savings to cover these expenses, you can easily see in your budget where you can cut 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 your expenses on paper, you make your spending habits known.
Once you create your budget, you can easily see if you have too many expenses or if your money is not being managed correctly. The easiest task to accomplish is to determine if you have too many expenses, just cut back and you will have extra money. To pay off some of your debts, some expenses that can be reduced are: bringing your lunch to work, canceling your pager, cable or cell phone service or getting the cheapest plan available, carpooling, taking the subway or bus to going to work, using coupons when shopping for groceries or shopping at wholesale stores like Costco or Sam’s Club, and selling unused items at a garage sale or donating to charities.
If you are mismanaging your money or spending your money on wants rather than needs, it is a bit more difficult to overcome because this requires willpower and discipline. It takes 23 days to develop a habit, so you should practice good spending habits every day. Each week will get easier and easier. It also helps develop financial goals for yourself, like if you want to get out of debt within a specific time frame, want to buy a home, take a vacation, whatever your goals are, write them down and give yourself a deadline.
Don’t be alarmed if you miss a financial goal deadline because your main focus is changing your spending habits. Remember that you are working towards your goals. It may take some time, but I know you can do it. Being debt free is worth the hard work and discipline it takes. 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 home for a payment, being able to meet in a house or buy an investment property or have a few. holidays. every year.
Many things are possible when you are debt free and living on a limited budget. I earn a decent salary and only have one mortgage bill and I still budget every payday. Sometimes people say why you care about money and I say that I always liked being prepared because you never know what can happen.
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