How to be Debt Free

Written by admin on March 30th, 2011

It’s much easier to stay free of debt than it is to get out of debt. With that said, realize that capitalism is counting on your lack of self control to trap you in debt. You’re bombarded with images of the biggest, best and shiniest of everything from cars to hamburgers. These are the enticements to lure you into the debt trap. Advertisers are counting on your lack of self control to lead you to take the bait and get caught in the debt trap. Then you end up working two or more jobs just to afford necessities. Some people say that job is an acronym for just over broke. So Let’s look at some things that you can do to be debt free.

Write a Budget Plan

One of the best routes to being debt free is to write a monthly budget and stick to it. If you’re one of the fortunate ones that have a very good income don’t assume you can skip this step. Maybe you’re familiar with the old saying “the more money we, make the more we spend”. Spending more money than we make is the definition of being in the debt trap. Savings should be in the top two or three items on your budget. This is how you pay yourself first. So make a monthly budget and stick to it to get and stay stay debt free.

Pay Cash

Pay cash for everything to stay free of debt. This can be a governor for your spending. This rule governs your spending by setting a limit on how much you can spend. The trick is to stop spending before all of your money is gone (self control). Set realistic goals for the lifestyle you live. In other words, don’t try to live a champagne life on a Kool Aid budget. In order to stay free of debt, remember the shiny enticements that lead you into the debt trap and avoid them at all cost (no pun intended).

Get Financial Counseling

Get help with your finances. If your parents didn’t teach you to save and budget money, get help somewhere else. There are plenty of resources in your local library that you can use to educate yourself about personal finances. Go online and look for budgeting information and software online. Ask a family member or friend that has their finances in order to help you set up a financial strategy to debt freet.

Make it Add Up

Balance your check book to get and stay debt free. Keeping your check book balanced will help let you know how much money you have to spend and keep you from overspending.

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