Best Ways to Avoid Debt
“I’m sorry madam your card didn’t got through” These words can strike fear quicker than any, not to mention the embarrassment you feel knowing you don’t have enough to cover the check you are about to write. With such ard economic times it can feel impossible to avoid debt, but it is possible. Here are the best ways to avoid debt.
Credit Cards
Don’t have them, it is so easy to say oh we will just pay them off each month, but we don’t. We have the best intentions, and then a month comes along, like December, and we justify putting the Christmas expenses on the card and vow to have them paid off in a few months. Things come up and we don’t and then we have a balance owing that if we only make our minimum payment it will take us a lifetime to pay back. Get rid of your credit cards and avoid the temptation.
Budget
A budget is simply a plan of how you are going to allocate your income. This is a must, you must if you have not already, sit down and create a budget. Know how much you have coming in each month, and know that whatever is going out has to be less than that. You budget can be simple and concise, but stick to it.
Coupons
I know I have said for years that it takes too much time, but if you really pay attention and plan you can find an effective way to use your coupons. The easiest way to do this is get a little file folder and place different coupons in different sections, you can break it down as simple as food items in one, non-food items in another, and restaurant coupons in the third. Or you can break it down how you shop, such as frozen, deli, bakery, dairy, and so forth. Keep them in your car or purse so you always have them with you. And then plan out your shopping before you go so that you can utilize your coupons efficiently and not be the person holding up the line looking for your coupon.
Eat in
I know this sounds so simple, but by eating in or taking your lunch to work you could save as little as $1000 per year, that is a lot of money for food. This is one cost that is a luxury that we have gotten so used to it seems like a necessity. Just skip it, or reserve it for only special occasions.
Save up
I know this is a hard concept for most of us, as we have been raised in the generation of immediate gratification. When we want something we want it now, and don’t understand the meaning of I have to wait and save for it. There are so many options available to us so we can have it now, but they don’t come without consequences. The consequences for not saving up are that we are constantly in debt. Have the money first and not only will you avoid debt but you will save money in interest costs.
These are some of the best ways to avoid debt, and keep your sanity. Debt is just a way of becoming a slave to your belongings, and none of us wants to be a slave. So remember to avoid credit cards, create a budget and stick to it, use coupons, eat in and save up first. No one wants to be constantly in debt, so do your best to follow these simple rules.
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