First, only use credit when it is absolutely necessary. Never use credit for consumables such as groceries, utilities, etc. The one exception might be gasoline, if you discipline yourself to pay the card off in full each month. Did you know that if you pay your credit card by the due date you might be able to avoid interest charges for charges made during the billing cycle?
Second, the moment that “bonus” money (windfall, unexpected) comes in, apply it to the debt first! This is very important. Windfall money must not be spent frivolously, ignoring your debt. Don’t respond like a child. Respond as a responsible adult, making the right decisions rather than according to how you feel.
Third, STICK TO THE BUDGET. And, BELIEVE in tomorrow. You can believe in tomorrow when you manage your money. But, if you treat your money according to your feelings and luck, don’t be too surprised when tomorrow is a lot harder than you expected.
Do you want to be debt free?
- Plan your finances or become a prisoner of debt.
- Don’t spend more than you have.
- Respect yourself and your family and your future.
- You can either become an expert at managing your money, or an expert at getting into debt. How do you become a debt expert? By not planning and not managing your money.
- Part of growing up is taking responsibility for your finances including: showing up for work every day and doing better than you have to; planning what you will do with your paycheck, and sticking to the plan; paying yourself from every paycheck: put money in your savings account.
You can be debt free if you plan to be.