Many people constantly complain about being in debt, but when you ask them if they have a budget, if they know how much they owe, or when you suggest they cut back on spending, they either look at you as if you’re speaking a foreign language, or just refuse. I’m always amazed at this, how can you get out of debt if you don’t change your mindset, if you’re not willing to work hard and make sacrifices? There is no quick fix or panacea to get out of debt. It takes a long time to get into debt and it won’t come out overnight.

Many people don’t know how to create a budget for themselves, and many don’t even know where to start. Fortunately, I was taught at a young age how to create a budget for myself. I knew how much money I spent and how much I had left. This ability helped me when I became an adult and fell into debt. How did what you say happen? Well, even though I knew how to budget my money, I had no idea how credit cards worked. I thought it was free money, but that’s another article. Regardless, the first step to getting out of debt is creating a budget for yourself. The basic premise to make a budget is to know what comes in and what goes out, that is, how much money you bring home and how many expenses you have (creditors, loans, public services, cell phone, childcare). , dry cleaners, etc.). Make your budget more flexible so you have room for unexpected expenses, like home or car repairs. If you don’t have an emergency fund or savings to cover these expenses, you can easily see in your budget where you can cut back to get money to pay for those unexpected expenses.

Having a budget makes you responsible for your finances. Most people don’t think about how much money they spend per week or per month, but when you sell all your expenses on paper, it makes your spending habits known.

Once you create your budget, you can easily see if you have too many expenses or if your money is not being managed properly. The easiest task to perform is to determine if you have too many expenses, simply reduce your expenses and you will have extra money. To pay off some of your debt, some expenses that can be reduced are: taking your lunch to work, canceling your pager, cable, or cell phone service or getting the cheapest plan available, carpooling, taking the subway or bus to work, use coupons when grocery shopping or shopping at wholesale stores like Costco or Sam’s Club, and sell unused items at a garage sale or donate to charity.

If you’re mismanaging your money or spending your money instead of necessities, it’s a little harder to overcome because this requires willpower and discipline. It takes 23 days to develop a habit, so you need to practice good spending habits every day. Every week it will be easier and easier. It also helps to develop financial goals for yourself, like if you want to get out of debt within a specific period of time, if you want to buy a house, take a vacation, whatever your goal is, write it down and give yourself a target date.

Don’t be alarmed if you miss a financial goal because your main goal is to change your spending habits. Remember that you are working to achieve your goals. It may take some time, but I know you can do it. Being debt free is worth the hard work and discipline required. Financial freedom is so sweet. Think about how nice it would be to wake up every morning: not worrying about having to pay a creditor, not worrying about creditors calling your house for payment, being able to see yourself in a house or buy an investment property or take a vacation. every year.

So many things are possible when you are debt free and living on a budget. I make a decent salary and only have one bill for my mortgage and I still budget every pay day. Sometimes people say why do you worry about money and I say that I have always liked to be prepared because you never know what can happen.

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