Staying Out of Debt: 4 Easy Steps That Actually Work


Staying out of debt is generally not very easy. Even then, you can find yourself in a much more sound financial position, if you closely, for the most part, allow yourself to follow the steps mentioned below:


1. You should save before you start to spend:
Save before you specifically start spending. If you can understand this line, then you can save yourself a lot of miseries. You will almost find yourself empty pocketed when the month is about to end, that too in a fairly big way, if you plan on saving, whatever is left, that too at the end of the month. That definitely is because it is far too much easier to save at the beginning of a month than to save when the month is coming to an end. Therefore, preparing a budget, as soon as a new month begins, is very much important and then leaving the budget money aside should be the next thing you should do. In addition to that, a bit extra for emergency expenses, that may arise, should also be saved. Once this has been completed, the rest of the income should be saved.


2. Making a list of items to be shopped for:
When we enter a shop, a sense of ecstasy, a sense of jubilation takes over us and this feeling always urges us to spend more money than we are normally contended with. That is why one should have a list of things that are to be bought whenever he or she is going shopping for groceries, clothing items or any other fundamentals. That is one good way of keeping a track of your habits which cannot be figured out any other way. The advantage of a list is that even when you want to purchase something that is not available on your list, in your mind you will be aware of the fact that you are overspending and that you should reconsider.


3. Live below your means:
Learning to live below your means will serve you really well for the rest of your life. If Warren Buffet is driving a car that is supposed to be more than 10 years old, then why can’t we? Is it really that necessary to get a new car after every two or three years? Perhaps we are not changing our cars that often, but there are a whole lot of other habits that are taking a toll on our financial status. For instance, going to different places to eat, frequently purchasing needless stuff etc. The truth and the mere fact is that living in the most expensive house affordable according to your salary is not a necessity nor is to have the most expensive mobile phone or a laptop which you can afford.


4. Educate yourself to become financially responsible:
The internet, for all intents and purposes, has thousands of exquisite written articles on how to save money. You should take time out to read those articles and keep a note of the piece of those writings which you find helpful and inspirational. Along with that, a number of books are available which you can purchase to enlighten yourself with the knowledge of saving money and staying away from debts. Moreover, if you really are that serious about saving money, then maybe you can even take the biggest step of them all by attending a seminar which will enlighten you about the secrets of forming good money habits.