Simple Solutions on How to Become Debt Free
Have you wanted to learn how to become debt free? Perhaps you have grown tired of living in a manner where you are usually broke when the end of the month comes around. Most people say that we want to set aside some money every month for rainy days, but it seems that there is never enough money to go around. To the contrary, most of us are living from paycheck to paycheck and it seems there is never is a way to get ahead. The answer for of how to become debt free starts with implementing a few simple changes to the manner in which you are managing your money.
FIRST: The first step in learning how to become debt free is to begin listing of all your family's monthly expenses. If possible, attempt to write down exactly where your money goes every week. Then you will have a better idea of exactly where your money is spent every month. Then once you have the full picture of where the money is going every month, you can then start making a list of all the priority expenses such as food, rent, clothing and basic necessities. This process will give you a better picture of where you are spending money for necessities and where the money is spent on unnecessary things. A caveat: always set aside some money just for fun things -- it is also important to enjoy life every now and then and not feel like you are having to keep track of each and every nickel spent.
SECOND: A second important pointer on learning how to become debt free is to start an emergency fund for unplanned expenses like car repairs or medical emergencies. When a person is living paycheck to paycheck this is often easier said than done. But make an effort to save just a little each paycheck for that emergency fund. You will be happy you saved money when an unplanned expense comes up -- and they do come up when you are least ready for them.
THIRD: Also, be sure to never go grocery shopping when you are feeling hungry. You can also save money at the grocery store by writing out a food plan for the week and listing all the food items that you need to buy. Then keep to your plan and really try not to buy anything not on the list. The grocery store savings will enable you to save money, and is a great way to learn how to become debt free.
FOURTH: If at all possible, you should avoid using credit cards. One good tip for not using credit cards is to remove them from your wallet before even leaving home. Another great idea for not using the credit cards is to put them in a resealable plastic bag, fill that bag up with water and stick it in the freezer. Then before using your credit cards, you will need to thaw them out. After going through all that hassle, you may end up deciding that you don't really need to buy that item after all. By all means if you have to purchase something with a credit card, then be sure that you can at least make the minimum payments every month.
In conclusion, it is certainly possible to learn how to become debt free provided that everyone in your household is willing to work towards that goal. Not being broke all the time is a goal that is really worth reaching.