Getting yourself into debt can be quite easy. You spend more money than you intend to, but then you promise yourself you will make up for it. You charge up credit cards and then find yourself having a hard time making the monthly payments. Maybe you’ve even purchased a car that you thought you could afford, but you have found yourself in over your head and now you are struggling to make ends meet. Getting out of debt is always easier said than done. Debt can cause many problems, such as ruining your credit and even causing you to go bankrupt. However, there are 3 simple ways that you can become debt free and live a happier life.
Don’t Bite Off More Than You Can Chew
This saying might sound funny, but in reality, it is true. Biting off more than you can chew means that you are taking on more than you can actually afford. This can happen many ways. As a single mom, I have been on my own with everything since before my daughter was born. Trust me, I try to do it all and sometimes, I bit off more than I could chew. What helped me was to sit down and figure out how much money I make per week and then how much I would make in a month. I would then figure out my expenses for my bills and see what I was left with. That way I wasn’t taking on something extra, like a unnecessary bill, that I couldn’t afford and I wasn’t cutting myself short. I could pay the bills and take care of my daughter then with what I had left over.
Save Extra Funds
Rather than running out as soon as you know you have extra money after paying bills and buying something you do not need, save that money. That is right. Put that extra money in the bank for a rainy day, because trust, there will be one eventually. If you should lose your job or take a cut in pay, you will have that money saved up in the bank and you will be able to pay your bills and live until you get your situation sorted out. I learned this lesson the hard way and never saved, but spent all the time until my uncle told me to start saving for those rainy days. Now, I make sure I have enough money saved up to take care of my bills for two months in case I should ever need it, because someday, I know I probably will.
Cut Up the Plastic
If you have credit cards, know that they are a major problem and can put you in serious debt. People tend to think that because they haven’t hit their credit limit, it is okay to keep right on spending, but that is definitely not the case. Sure, if you don’t have cash in hand, you can charge things on your card, but then you’re paying for the item and by time you pay the interest, you could have owned another item as well. Even if you do have the cash to pay for the item, you may choose to charge it, because, hey, you still have your money for something else and you don’t feel like you’ve spent anything. Your best bet to become debt free is to cut those cards up and never look back. Work on paying them off and call it good.
Becoming debt free is not always easy, but it can be done if you realize what it is that is causing you to be in debt. Instead of always spending, save your money for a rainy day, because even if you don’t wind up needing it now, you may later, and if you don’t, well then, kudos to you for having a nice start to a nest egg. Get rid of credit cards, because they are demons in the debt world and be sure to always budget and plan out expenses before spending anything. You’ll be debt free and so much happier with yourself!