Do You Feel Trapped in Debt?
Are you familiar with this expression, “I owe, I owe, so off to work I go?” Do you feel you are trapped in debt? Have you overspent? If you have answered positively to these questions then you probably would like to somehow change your answers. Here are a few suggestions to consider.
Declare a moratorium on credit. When you are tempted to go and charge that item that you “have” to have, wait a week or two or three, and see if your perspective changes. In the meantime try to save some money so that you can buy the item with cash.
Organize your debts from smallest to largest. Make minimum payments on all the debts except the smallest one. Put as much as you can on the smallest debt until it is paid off. When the smallest debt is paid off take the money that you were applying to it and now apply it to the next smallest debt in addition to the minimum payment that you were already making. Keep this pattern going and watch your debt disappear. You must be disciplined when you take this approach. Stick to it and soon enough you will be very happy to be debt free.
If you really want to get serious with your spending habits try this. For the next three months, keep track of every penny you spend. Every time you buy a snack, candy bar, chips, fruit, gas, food, restaurant, rent, mortgage, insurance, etc.. write it down or put it into a spreadsheet. Put the expenditures in categories like; housing, car, food, pets, utilities, clothing, insurances, medical, etc... Keeping track of your expenditures will help you understand what happens to your money.
I know an individual who did not know what happened to six hundred dollars every month. I asked this person to list their expenses for the month and then list their income for the month. There was a difference of six hundred excess dollars (more income than expenses). But this individual felt broke every month. I encouraged this person to track their money for three months to find out where their money was going.
What do you think of these ideas?
-- by Richard Moore
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