Debt free living. These seven principles to how to get out of debt can change your life. Learn how to legally get out of debt. Plan to get out of debt by using the best debt free programs, Today!
Debt free living is possible as long as you stick with a few key principles. If you are in financial trouble, you can eliminate it and live debt free. If you have yet to incur any debts, then now is a good time to instill some financially healthy habits. These seven principles can change your life - and keep you out of trouble.
Impulsive spending can be death to a budget, can rack up debts and is counterproductive to living debt free. The thing is, you may be an impulse shopper and not even be aware of it.
Impulsive spending can be as blatant as late night TV shopping or as subtle as picking up a soda and candy bar each time you are in the checkout at the market. There are several ways to keep track of impulse spending and get it under control.
Before you make the purchase, ask yourself the two magic questions: Do I need this? Can I justify this purchase if I get it?
Another effective budgeting method is to write down every dollar that you spend - to the penny. Keep a small notebook and pen with you. Each time you make a purchase, no matter how small and insignificant it may seem to you.
After a few days you may be surprised to see just where your money goes. This will give you a direction for finding where you can cut your spending and you can even save this money.
Debt free living, you can also term this - don't live beyond your means. You need to take a look at the price of that new house or new car. Can you really afford it? Or can you more comfortably afford a downgraded version?
A debt adviser can help you rethink major purchases and make wiser more budget friendly spending decisions. You don't always have to keep up with the Joneses. Besides, just think, when the Joneses are up to their eyeballs in debts, you will be sitting pretty because you spent wisely and did not spend beyond your budget.
This may seem like a no-brainer, but it still needs to be said. Many people don't realize how much money they could have if they just saved. If you saved $25 a month for 30 years and put it in an account that pays 6% interest, you would have $25,000. If you saved $25 a week for 30 years you would have $109,000.
Even if you just never spent your change and put it away you could easily save $30 a month. It isn't so difficult when you put it into that perspective. You can spend your time saving your money instead of paying off debts.
If you are going to have a credit card then you need to be smart about it. Debt repair can be a big cost that you do not want to incur. Use credit wisely, don't go out and get a bunch of credit cards just because you can. Build the credit rating you really deserve!
Also, don't use a credit card because you could not afford the purchase otherwise. If you can't afford it without a credit card you don't need it.
Set goals for your saving and spending. If you have debt, set goals for when it will be paid off. If you are saving, set goals for reaching certain benchmarks. The key here is to be organized.
Debt Free Living, By setting goals you are constantly tuning in to your debt and your financial status. If you always have your finger on the pulse of your finances, you will be much better at money management.
Consumer debt is so astronomically high and out of control now because so many people are not good at managing their money.
Make a budget and stick to it. If you have a budget, you know where your money goes each month, what needs to be paid and how you pay it.
List your rent or mortgage payment, utilities, phone, food and other monthly expenses. Subtract that total from your monthly income.
The amount that is left over is your disposable income, some of which you can allot to savings (unless you have already worked that into the budget). This is one of the simplest, yet most effective debt to wealth secrets.
Remember the Magic Questions
Always ask the two magic questions before making a purchase: Can I afford this purchase? and Can I justify this purchase? A no to one or both should mean a - no sale - for you.
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