Keeping Out Of Debts Way! By: Jay Stover Keeping out of debt can be a hard thing to do, with the economy always coming up with new ideas and schemes to gain consumers; it can become very difficult to resist spending your money. The truth is, everyone must pay debts at least once in their lifetime. No matter your financial position. It can range from a mortgage loan or an investment gone sour, the economy is always rising and depreciating. Sometimes we get caught up with the economy and having the latest and greatest products that we lose track of what we are doing with our money. This usually ends with unnecessary and unaffordable purchases, which can lead to a massive debt that burdens you from enjoying life. There is nothing worse than living your entire life with debt. But, there are measures that can be taken to reduce and remove debts which will lead to a happier debt-free life! So the question is, how do you stay out of debt? Well staying out of debt isn’t the easiest thing in the world, it takes time and patience. But I think with these simple, yet effective tips that I am about to mention, it will surely help change the way you look at your finances. 1. Credit Cards Out Debit Cards In. – The most frequent cause of debt is overspending. I mean, if you have a card that allows you to purchase first and pay later, why not use it to your advantage right? WRONG! Credit Cards like to play tricks on your mind, they make you believe that anything is purchasable and payable later on. Well this constant thought of “paying it later” causes you to oversee your finances which eventually results in your money not being able to keep up with your spending. This is why it is better to pay for your items upfront. If you do not have cash, use your debit card instead of your credit card. This leads me on to my second tip, track your spending. 2. Keep up to date. – Keeping track of when and how much you spend is more important that it sounds. Knowing how much you can afford before going out to purchase is a tip I cannot stress enough. Yes, it may be something that you really want in the present, but if you purchase it without really being able to afford it can really mess with your finances. There are many ways to keep track of your financial records, with the current technology we have, it is more convenient to look at your finances online than it is to physically go into your main branch. With the invention of online banking, you are easily able to track your purchases and check your account balances. 3. Budget your money. – You should have a general idea of what you are making per month. Budget out your primary liabilities (ie. Insurance, Loans, Bills, Rent, etc) , usually these primary liabilities take up a majority of your monthly paycheck and with the amount left over, you gain a general outlook on how much “extra” income you have to spend monthly without effecting your financial position. 4. Save Save Save! – With the “extra income” you have monthly, it is always good to save a fraction of it incase of emergency. It doesn’t have to be anything big, even something as little as $50 per month can benefit you in the long run. Also banks like to reward those who save, so by setting up a savings account, you are eligible to earn (depending on your bank) a monthly interest rate on your savings. Just remember, it’s better to be safe than sorry.