Whether you work from home, in an office, or stay at home with your children, we all need to keep ourselves from getting financially overextended. Once you do it can be very challenging to get yourself out of that dark place. The solution? Not going there in the first place.
I’m sure we have all been there at some point or another, and if you are or were there it can become a burden, something that walks around with you everywhere you go consuming your every thought and action. It’s never too soon to get your finances in Check, and as soon as you do you will find yourself climbing out of the financial pit you have gotten yourself into. Here’s some advice from one friend to another to help you get started on a debt free road.
1. Ditch the credit card.
Do it now! Those things are a death trap in the making. Is it really plausible to go out and spend money you know you don’t have? Is that $100 pair of shoes really that important to get? Think about for a second. Isn’t the reason most people get a credit card in the first place so they can spend virtual money? Meaning money that you haven’t yet made, but think you will make. News flash! Credit cards are not actual money, you will pay that back. If you have to have a card of some sort go with a prepaid debit card. That way you will never be financially overextended or spend money you don’t already have
2. Pay bills first.
If you pay your bills before you go out and buy that new iPhone you have had your eye on for the last month or two you won’t regret it when your car insurance or rent is due and this time you don’t have twenty dollars to your name like the last time the landlord came to collect. This time your on the ball. It’s such an enlightening feeling to have atleast a couple bills paid. Then you will not feel so guilty about treating yourself for a job well done. Make sure all of your “ducks are in a row” then don’t be afraid to go treat yourself.
3. Put money away.
This is one of the best ways to keep yourself from getting financially overextended. Now this doesn’t mean you necessarily have to have a savings account to pt your money away. You could have an envelope, or a jar, or box and put it somewhere such as a safe. Take out as much or little as you want d on each paycheck, even five dollars will do. Don’t think this sounds like much? It will be just enough when your baby needs diapers or you need a gallon of milk. Every little bit helps tremendously. Remember to use this in financial emergencies only. Not fashion emergencies.
This system is such a great system, you can never be financially overextended using this system, one wonders why more people don’t use it. People have been doing this since the turn of the century.
Think about finding adds on craigs list. (there’s tons of people more than willing to trade all sorts of things if you know where to look and what to look for) No it may not be brand new, but honestly, do you really think you can afford to complain at the moment?
There is absolutely nothing wrong with attempting to trade or barter your goods or services in return for a good or service. You may even make a friend in the process. Then when yiu need it most you can call up your friend and ask her for some formula because you ran out and next weekend you can watch her kids in return.
5. Don’t let yourself fall into little debt.
Little debts, with time, lead to big debts. Unless you’re one of the few who’s self disciplined, it almost always does. If you buy something and other it on a tab and it’s only one dollar, then the next day you go and buy another one and so on and so forth, that could potentially lead to fifty or even sixty dollar, leaving you financially overextended. Money you may not have when you’re asked to pay the tab. So you let it go and by the time you get around to lay in it before you know it you have a five hundred dollar bill to pay.
Check your finances and check them again. You can never check them enough and make sure you can pay for whatever your getting right then and there.
6. Make a plan.
Always. You should always make a monthly or weekly budget for your money in order to keep from getting yourself financially overextended in the first place. Sit down and go through your bills and budget out how much money you have to pay what bills with. Make sure you leave enough for groceries and some of that cushion money we were talking about to put away. This will work wonders and help yiu to keep track of what can be paid and when. With this and and the other tips here you should be on the road to a debt free life. Just breath and keep your eye on the ball and you will never be financially overextended again.