Staying debt free must become a matter of habit. Once a debt counselor has helped a consumer achieve a debt free status, it must become a way of life. These are some small changes that can be made, which if they become a habit, will help maintain a life free of debt.
Compile a budget down the last sent. Account for everything from groceries, to utilities, to entertainment, and never exceed the amounts budgeted. If it is the middle of the month and the entertainment budget is depleted, stay home and do not pilfer from other allocated amounts. Set a daily living expense limit and do not exceed it, if it is spent, do not use tomorrow’s money. But adhering to this budget, managing your finances will become second nature.
Pay close attention to what you’re spending money on. Keep your slips and work out your expenses. Doing this will help you indentify where you are wasting money that could be saved up, and help you avoid debt counseling and indebtedness.
Pay cash for everything. It goes without saying that credit cards and store accounts are off limits when living debt free, rather investigate your budget and start saving up for expensive items.
4. Think twice
Before recklessly spending money and incurring debt, think carefully about what you want to purchase. Sit down and ask yourself if it is necessary, if it will improve your life. It is often the little debts on little luxuries that add up in the end. If an item will not be used regularly, do not buy it.
Article written by: Andrea van Tonder 02-2013