Staying Out of Debt: 4 Easy Steps That Actually Work

Staying out of debt is not easy. But still, if you closely follow the steps given below, you will find yourself in a much better position financially:

1. Save before you start spending

If your plan is to save whatever is left at the end of the month, you will almost always find yourself with nothing when the month ends. That is because it is far easier to save at the beginning of a month than to save when the month is about to end. So, prepare a budget as soon as a new month begins, and then leave aside your budget money. Also, keep a bit extra for emergency expenses that may come up. Once that is done, save the remaining income.

2. Make a list of items to shop for

Most of us feel a kind of euphoria when we shop, and that feeling encourages us to spend more than we are comfortable with. That is why whenever you go shopping for buying groceries, clothing items, or other essentials, be sure to make a list of things to buy before leaving the house. That way, you will be able to keep track of your spending habits. When you have a list, even when you buy something that is not in your list, you consciously know that you are overspending.

3. Live below your means

If Warren Buffet can drive a car that is more than a decade old, then does it really make sense for us to get new cars every two or three years? Maybe you do not change cars that often, but there must be many other habits that are not serving you very well financially. Like eating out a bit too much, buying unnecessary stuff impulsively etc. The truth is that you do not have to live in the most expensive house you can afford based on your salary. You do not have to have the most expensive cell phone or laptop you can afford, either. Learn to live below your means.

4. Educate yourself to become financially responsible

The internet has thousands of excellent articles on saving money. Read some of those articles. Save the pieces that you find particularly helpful and inspiring. In addition to that, you can buy books about saving money and staying away from debt. If you are really serious about saving money, you can even take a big step like attending a seminar about forming good money habits.