Debt is the worst. Sometimes we build up debt due to emergencies or situations that are beyond our control. Sometimes we just buy too much stuff. Whatever the case may be, here are three things to think about when it comes to your finances and debt…
Set financial goals: Goal-setting is key when it comes to your money. Your budget should be an easily attainable goal for you. If you’re having trouble staying with a budget, it’s probably a good idea to take a close look at it. When it comes to saving money, have a purpose. Every time a direct deposit goes through, it should be putting money into retirement and an emergency fund automatically. If there is a large purchase you want to make, designate a savings account for just that purpose.
Have more self-control: It’s easy to buy something on a whim (especially when it’s cheap), but those small purchases can really add up when you’re constantly giving-in to every impulse. You need to start saying no to yourself if you really want to be free of debt. You may love your neighbor’s new SUV, but that doesn’t mean you should go out and buy your own. Having new toys is fun, but how often are those things worth going into debt over?
Ignore pay raises: If you budget your paycheck as if you’re making less than you do, it’ll be easier to save for the things you want, and you won’t have to put yourself in debt to get them. It may not always be easy to cut back, especially if you have a large family, but every little bit counts. And when pay raises come, redirect those additional funds to your savings accounts and forget all about them.