How to Stay Out of Debt, Ten Practical Ways
Posted: Monday, November 09, 2009
by Lawrence Jones
Jones & Assoicates
It is apparent that majority are in debt. America is at war with its credit cards , home loans , and auto loans . Well let's explore some ways you can stay out of debt and crawl, stumble , eventually; walk your way out of debt.
It is one of the most practical things wanting to be out of debt and staying out. The principles here will help anyone from any walk of life and with any budget. It is apart of ten article series
1. Take your time and don't buy on impulse. Impulse spending is probably 90% of why people get into debt.
Many times we walk in store and want the first thing we see without giving it some thought to why we want it and how we going to pay for it .
2. Know what you going to buy before you go into a store, on website, or at a garage sale.
-Make a list of the things you want to buy and take the time to see if it is what you need or want.
3. Go to websites that have customer comments about products you want to buy for example you can go to www.amazon.com , www.walmart.com , and www.staples.com .
-By reading the comments of others, will help you make an educated decion about the products, and if it will meet your needs
4. Seek out financial adviser at your local commercial branch or credit union.
-They have financial counselors to help you with you finances at no charge.
5. Use credit unions as your source of primary banking they have lower fees.
-Commercial banks charge fees for every transaction legally possible. They nickel and dime there customers, and still offer financial products to you to drain your savings. Therefore become a member of your local credit unions link to your job, school system, or community organization. Reason is credit union laws are different from commercial banks. Your dollar you save with the credit union I like owning a share of stock in a company.
6. Take time to learn all about fees, services, and personal you deal with at your financial institution
-It is import to be knowledgeable about your financial institution policies ie, procedures and fees. That way you plan ahead if your have to do transfers and withdrawals without incurring a fee.
7. Develop a skill and talent for picking good stocks if you like to invest in the stock market.
-Nothing is wrong with investing in the stock market. Just don't depend on it as your primary source of building a nest egg.
8. Read books like Susan Orman Plan 2009 by Susan Orman, Motley Fools News letters and their numerous others.
Self empowerment through learning how money works and what it can do is very important.
9. Use common sense when spending money, buy things you need and stay within your budget ( you can review my article on how to create a budget entitled Creating A Budget ).
-Redefine your self as being a educated investor verse a consumer. If you are educated investor, you are investing in the well being of your financial, physical, and mental health.
Whereas a consumer, to me is a very generic term that only allude to me being a brainless Neanderthal that can't think, and need someone to think for me. All I do is consume and never give thought to what I consume and why.
10. Take the time to plan on how you are going to manage your money and manage your debt.
-Set realistic goals for good financial management.
Lawrence Jones is author, poet, and freelance writer. He deals with practical knowledge for every day living. Check out his column every week and see what is new for you to learn, apply, and live well.
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Top-level comments on this article: (1 total)Hi Lawrence. Impulse buying is one of the factors why people are in debt, you are absolutely correct about this. I cut my credit cards into pieces and said good-bye to them. Great article, well-written and made a lot of sense. Thanks for sharing, it is very helpful. Best to you. ~Nenita~
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