A major problem in our society today is DEBT. It effects all of us directly or indirectly. It keeps us up at night, tears families apart and creates havoc in our lives.
While most of us can’t avoid debt; we can manage it by following these basic rules:
Spend Less Than You Earn – Breakdown your expenses by payday. Take a total of all your expenes per year (use a simple X-CELL WORKSHEET)divide this total by the number of pays in a year. This figure will give a good idea of your money outgo. Subtract this amount from your net pay per payday. Do you have a positive balance? If not, it is time to trim your spending.
Save For The Future – The difference between your average pay day out go and your income should be set aside in a saving account. This amount will vary depending upon your actual expenses for that pay period.
Give Some Away – This amount can be a percentage of your income OR an amount that you feel comfortable in giving to a favorite charity. Your time and non-monetary donations will also make you a responsible citizen. Please keep records of all donations by Date, Name of Organization, Items and Present Value (get a receipt from the organization). Please remember there are folks that need your help.
Anticipate Your Irregular Expenses – When you use an ex-cell worksheet for recording all your expenses annually you will be able to identify these expenses including insurances and real estate taxes.
Tell Your Money Where To Go – Let your money work for you; instead of you being a slave to your money. Get a handle on your finances. Set aside a designated amount of your net pay. Use a direct deposit or transfer to a savings account at your bank or credit union.
Manage Your Credit – Only use credit cards when you know you can pay the charges off monthly. Use “CASH” instead of your credit for items such as coffee and gasoline. Some gas stations will charge less per gallon is you pay CASH. Find them.
Borrow Only What You Know You Can Re-Pay – Get serious about what you can pay. Consider your needs; not your wants at the time of purchase.
The key to these simple rules are knowing where you are financially so that you can get out and stay out of debt.
In today’s world living BELOW your means will enable you to live a happy, worry free life in the future.
Please call me if you need help or have questions on these SIMPLE RULES.
Get outside and enjoy NATURE; it’s still free!!