Going into debt is simple. Practically mindless. Before you know it, your credit cards are near maxed. You realize you only have a few bucks left until payday (if anything). It becomes a vicious cycle of scraping by.
It turns out the rules to help you get out of debt are simple, too. They may be hard to implement at first, but they will work.
Start living by this new set of rules.
If you’re in debt, you are part of the majority. Odds are you want to do something about it. Here’s how to find freedom from debt.
If you’ve managed your money well and debt hasn’t taken you down, these tips will serve you as well. They’re effective, logical and surprisingly simple.
1. Use cash for purchases, not credit cards.
Only buy what you can pay for. Don’t use credit cards, ever. If you don’t have the cash on you, use your debit card.
An excellent way to start using cash for purchases is through the envelope system. This method alone will help significantly by reigning in your spending.
2. Live within your means and create a game plan.
Complete a budget every month. A budget allows you to manage your money. You can plan for holidays, birthdays and other expenses that sneak up on you by making a plan for your money.
Cut out expenses you don’t need. Small adjustments add up.
3. Control your spending behavior. Make new habits.
The majority of spending habits are behavioral (80%). Just a small percent of your habits actually relate to the numbers (20%). Once you become aware of this truth, it’s time to implement a new style of spending.
- Use coupons
- Frequent consignment and thrift shops for big savings
- Limit your grocery shopping to once or twice a week
Living with financial stress is tiresome. Debt proofing your life will take time and effort. It will be worth every second of it.
Take the time. Put in the effort. Manage your money and it will go further.