You have a spending problem, I get it. Don’t worry. You are not alone! A lot of people tend to spend a lot and in return are in debt from credit cards and bank loans. What’s important to eliminate debt is that you realize you have a problem and that you are willing to act on it.
Here are tips that you can do to eliminate debt and prevent it from happening again:
1. Do not spend what you do not have. If you spend $15 for every $10 that you earn, you are heading to a big financial disaster.
2. Better have a cash cushion. This cash cushion is money you have saved and set aside that will get you by for at least three months in case of unwanted circumstances like you losing a job, getting injured or getting a divorce. If your monthly expenses sum up to $4,000, you better have a $12,000 cash cushion prepared and do not touch this money unless you really have no other means of earning.
3. Use cash more than cards or virtual money. People tend to overspend when they do not see the cash they are throwing out when purchasing things compared to seeing themselves giving away cold hard cash from their pockets to establishments.
4. Jot everything down. Write down in ink or type down in your devices the flow of your money. Put into writing how much money you saved, spent, and earned. Having a clear visual of how you manage your money will make you realize your faults or things you have to keep on doing.
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