I must apologize for not writing anything sooner to help with debt management, which will change today. I prepared a few short ways I find useful to stay out of debt without having to give up too much.
1. Credit Card Usage
The easiest way to get into to debt is not to manage how much you use your credit cards. It is so easy to simply swipe, and sign. When the statement comes around you simply pay the minimum; most people barely look at the total balance. Keep your usage at a point where you can pay off your credit card when the statement comes around. If money is tight try not to do excessive spending.
2. Cut Back on Spending
You first have to discern whether your expenses are higher than your income. Start cutting back on luxuries, buying food everyday will cost more than you realize. Imagine spending $10 everyday, 5 days a week – in a month you will spend $200, in a year that will be $2400. That money can easily pay for multiple bills throughout the year. Save some money by simply packing a lunch from home. Little things like that cost you more than you realize and it is a luxury to be spending that money every day.
3. Know what Your Expense are
It might be getting redundant but spending less is a whole other category in the sense you will first set aside the money you need to spend on bills and then see what you have left over for anything else. The first step is to compile your bills and have the total monthly expense for everything. Once you have that it is easy to see what you HAVE to spend each month. From there take the left over money and either save it (which would be the best thing to do) or treat yourself.
4. Wasting Money
It is easy to waste money, we all have bought something that seemed great at the beginning then you slowly realize how ridiculous the purchase was. Try not to do too many impulsive purchases, if you are tempted do some research on it first – you might find it looks better than it actually is. When making the purchases think “Do I really need _________” or “Is _____ worth it” or “What should I really be spending my money on”. Contemplating those 3 questions can actually help you save your money and in the long run stay out of debt.
With the tips I have given you, hopefully you can stay out of debt while not dropping your standard of living drastically. Remember it is easy to get into debt but hard to get out of it and it could take years before you are debt free.