Whether you have $500 worth of debt or $5,000, you can get out make sure you don’t get into debt again. Sometimes it’s the most obvious solutions that we seem to ignore when it comes to money and debt. This article outlines 3 things you can begin implementing in your life in order to get out of debt and save money.
1. Reduce the number of cards you use
You might have a number of cards to pay off, but you don’t need to continue to spend on all of them. Pick one or two that you use for necessities and stick to those. Put the rest away or cut them up. Cutting them up might be something to think about if you have a problem sticking to a couple of cards. If you can’t hide them away in order to stop using them, it’s the safest solution for your finances.
2. Create a budget
In order to properly budget you need to know how much you bring in every month. After that it’s vital that you account for the fixed expenses that remain the same every month. Rent, car payments, insurance, and cable/internet usually remain the same from month to month. Your grocery bill probably varies, but you can decide on a reasonable amount for your weekly food budget and stick to it. Once everything is worked in you’ll hopefully have some money leftover. With that leftover money you have to put some money away into savings. Saving money is just as important as paying off your debt. You might want to put all of the leftover money you have into paying off your debt, but if you do that you’re left with no savings. You need to have savings not only for the future, but also in case anything happens and you cannot work for a while.
3. Enjoy what you have
While it’s a thrill to buy new gadgets as soon as they come out, they are not necessities. If you’re in even a little bit of debt, these fun items need to be put on the back burner for a while. Instead of buying the latest iPod version, use the one you already have. As long as it works there is no rush to purchase a new one. If your cell phone carrier offers you a new phone and plan for only $20/month more, decline. When you’re in debt these small amounts of money can really add up.
You don’t have to be in debt forever. If you make better financial choices, you can dig yourself out and avoid being in debt ever again.