All About Debt Free Living
Debt-Free Living
We all want to be carefree, without worrying about what tomorrow will bring, and without a thought as to how the money will come in. Unfortunately this is only a pipe dream for many of us, and instead most of us-are heavily in debt, struggling to find a way out of the money problems we seem to constantly find ourselves in. Indeed being debt-free is a standard that seems all but unattainable for most of us.
What can we do then, to attain a debt free life? The first step is an awareness of your own particular money situation. You will need to find out how much your total monthly income is, (less taxes, etc.), and then figure out how much you normally spend in a month. Ideally to be in the black financially, your spending must be the same as or less than your income. Prioritize your current spending and decide what areas you are willing to cut.
This means that you can spend as much as you want of your total income, as long as you stay within these bounds. Or, if you are going to knowingly step over these bounds, you should be prepared to cut back on other things over the next few months as you pay back the extra money you have taken on credit.
In other words, if you are going to use your credit card for a larger than normal type of purchase, then you should either be prepared to pay it all back by the end of the month, thereby sparing yourself the problem of having to pay interest as well, or you should be prepared to cut back on other things for the next month or two while you pay back this sum of money that you took against your credit card.
This is probably going against the grain of everything that you have practiced to date concerning the use of credit cards and other types of loans. But if you want to live without debt, then you will need to make some changes to your lifestyle, even if these changes don’t necessarily jibe with the way the world goes round.
Some form of compromise is going to be necessary, and learning not to use your credit card indiscriminately just because you can is as a good place to begin as any. Judicious use of your credit card and remembering to live within your means will be a good start to becoming debt-free!
money saving tips/facts
Cut up your credit cards.
Just the interest on just on credit card that has an APR of 14.4% can cost you as much as $1,100 a year. If you have credit card debt, then you have late fees and other costs. Do yourself a favor, save some money and do away with the cards.
money saving tips/facts
Check your cell phone plan.
You want your calling plan to closely match your habits and patterns of your cell phone use. Become well versed in peak calling periods, roaming, contracts, area coverage and termination charges. Cut the fat and keep your cell plan lean.
money saving tips/facts
Consider mail order pharmacies.
If you have a medication that you must take for a long time, mail order pharmacies may be your best bet. They are often less expensive than their brick and mortar counterparts.
money saving tips/facts
Use unit prices as a guide.
When you shop, check the unit price or price per ounce to get the best deals. Compare these prices instead of looking at the overall price of the item. When you have a larger item with a small unit price, it may be a good idea to stock up.