Debt – How to Get Out of It
Have you ever thought that if you could just find a way to make more money it would solve all your financial problems? The problem is, those who are bad at managing money will always be in debt regardless of how much they make.
Here are a few tips to help you budget to get out of debt.
Tip #1 – Stop Wasting Your Money
If you’re not saving at least 10% of your income, then you’re wasting your money. If you are saving 10% or more of your income and all you do is put it in a very low interest savings account, then you are not allowing your money to work for you. Even safe investments like Certificate’s of Deposit and Money Market accounts earn more than a regular savings account. Save money and let it work for you and you will find yourself in a better situation sooner.
Tip #2 – Track Your Spending
If you know you’re a spender and an impulse buyer, then it’s time for your wake up call of seeing how much money you spend on certain things. Keep a reciept for every purchase you make, whether it cost you $1 or $1,000, for one full month. You’ll be surprised how things add up and that $3.50 latte each morning turns out to cost you over $70 for the month.
Tip #3 – Stop Going Out For Dinner
One of the biggest problems in America is, we love to eat out. Not only is this very costly, but it also effects our health as well. Restaurant food is rarely healthy and most likely processed so you will be spending money on the food, then on the doctor bills later on when you have a heart attack or have high cholesteral.
Tip #4 – Budget Correctly
When budgeting to get out of debt, or just budgeting in general, most people forget a lot of expenses. You should be budgeting each month for your car registration, license fees, oil changes, haircuts, and other expenses you don’t pay each month. This will keep these expenses from sneaking up on you and making it very difficult for you when they have to be paid for.
Know of any other budgeting tips? Tell us about yours. Leave a comment by clicking the comment link below this article. You might just have a tip that could help another reader of this site. We’d love to hear from you.
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