Finding your trouble spots for being in debt (part 1)

Before you get into this three part article about becoming debt free, we recommend that you make yourself familiar with how to recognize your personal debt and the like. Be sure you have already made a detailed list of your expenses and income. Once you have accomplished that, it is time to take a look at it under a microscope. Maybe you trouble spots are obvious. Maybe you eat out way too much. Maybe you buy too many designer clothing items. Perhaps you have a hobby that takes up much of your extra or existing income. If no glaring categories present themselves as something that is quite obvious to you, it is time to go back to your needs versus what you want. You will have to make a bigger deal out of investigating what it is you are spending your money on – something you need or something you just want to have.

Discretionary Spending

You may want to go on a spending fast for a month or two and try to cut out spending money on everything that is not a necessity. Necessities are things like food, housing, health insurance, transportation, communication items and even child care if you are a parent. Stop spending money on anything that has to do with entertainment as it is not necessary for your survival. Entertainment should only be important if you have disposable income. Things like videos, music, dining out, and extra clothing you don’t need for work, are all not necessary if you are trying to be debt free. Stop taking those weekend trips that only put you further into debt. Try really hard to find the trouble spots that create extra debt for you.

While you are trying to locate the things that are unnecessarily putting you into further debt, you may find that you surprise yourself with low cost ways to have a good time. Try this; invite your good friends over to your home for a pot-luck meal instead of going to your favorite restaurant all the time. The quality of fun you have will definitely surpass most any expensive dinner out. Even a night at home watching movies and eating popcorn will prove to be a simple money saver.

Here is a great idea on how to curtail unnecessary spending: If you are lucky enough to live in a bigger city, try heading to museums that provide free entrance to those whop live locally. It is this type of entertainment that not only is free or t little cost, but it is this type of entertainment that will save you from becoming more in debt.

Part 2…

(450)

Back to News Updates