How many people do you know that live beyond their means?
Unfortunately, that number is many in the US. American household debt has reached a staggering $13.21 trillion.
What can you do to stay out of debt?
In today’s online ordering and credit card culture, will you know how to avoid credit card debt?
Financial planners will stress that you should never spend more than you make. That’s the best advice, but not always easy.
Debt-free living is difficult, but not impossible. Stick around for 5 essential tips on how to stay out of debt.
Essential Tips on How to Stay Out of Debt
With promises of government bailouts, many Americans don’t think twice about getting themselves into debt.
Debt is sometimes necessary for home ownership and a college education.
But, getting yourself into debt for everyday living is never a good idea.
Let’s look at some sure ways to keep yourself out of debt.
1. Use Cash Only
Keep one credit card for emergency situations, but otherwise, try to stick to using cash only.
Can you ever spend more cash than you have? No! Credit cards allow for that and that’s why they can be dangerous.
A cash-only policy keeps you living within your means.
2. Make and Stick to a Budget
Use your smartphone for something other than social media. Download one of the many budgeting apps out there.
Set your budget based on how much money you have coming in each week. List all of your monthly bills as well as things you spend money on regularly.
3. Avoid Ads and Email Sale Alerts
You’re sitting there checking your email or social media and companies are tempting you everywhere you look with the best deals.
Those BOGO sales or temporary deals are hard to resist.
You really don’t need anything, but that little voice in your head is telling you that you need to take advantage of this great deal.
Go through and unsubscribe from store and deal site emails. You won’t realize that you’re missing anything.
4. Have Money go to Your Savings Automatically
When your paycheck gets directly deposited, set it up to deposit a certain amount of money into your savings account.
If you get used to living without that money, you can build up savings and have money for those unexpected emergencies like replacing a phone dropped in water.
5. Lay Off Nonessentials
Do you need to get your nails done every two weeks? Can you pack a lunch for work instead of eating out every day? Is your gym membership being used? Can you get exercise another way?
Go through your monthly expenditures and see which ones you can truly live without at least for six months.
Keep Yourself Out of Debt
You now know some of the best tips on how to stay out of debt. Try some of these ideas to keep your finances out of the red. Visit us for information on anything from investing to real estate. Use our finance calculators when making a large investment such as a home or auto purchase.
