Staying debt free is a very popular subject and a lot of people have a lot of opinions on the best way to achieve that task. Because everyone is different, you have to find what works for you and your spending habits. Here are a couple of tips that can help you stay debt free:
1. Budget:
The best way to make a logical budget is to track your spending for 2 months. Take your spending record and put them into categories such as gas, groceries, entertainment, etc. This will allow you to get a clear picture of your spending habits. From there you can develop a budget to help you save money and avoid debt. There are many free budget trackers you can use online- Mint.com is a great one.
2. Get More Income:
Sometimes there is nothing on your spending habits you can decrease. When that is the case you have to find a source of extra income. Volunteer for more shifts or stay late if you are an hourly employee. Another option is to add an extra part time job until you have a job that pays you the amount you need to cover your spending budget. You can also do some other small things like sell things you don’t need on E-bay or Craigslist.
3. Be Careful With Credit Cards:
Credit cards are very convenient and often times makes your life much easier when you are out running errands. You have to be extremely careful not to over spend on your credit card and end up with a bill you can’t pay. Credit cards can offer great rewards for using it on a regular basis- just because you are being careful does not mean you can’t take advantage of those offers. The thing to remember when using your credit card is to only spend what you know you have budgeted for that month.
4. Save The Extra Cash:
Any extra cash you have leftover on your budget should go towards a savings account. That doesn’t mean you can’t go shopping every once in awhile but if you get a toothache or a speeding ticket you will be happy you saved some cash along the way.
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