If our bills are greater than our income, it’s safe to say…we’re in trouble! It’s when we find ourselves in situations like this that we’ll only keep adding to our debt whenever we spend more money than we make. The first thing we need to do is we need to get our spending under control. When we get to the point that we whip out that credit card to pay for that cup of coffee…or two…or three (throughout the day) with that bagel or egg sandwich, or grab a bite to eat for lunch every day at the nearby restaurant or deli, or order take out for dinner every (or almost every) night, because…heck, I don’t have the cash on me and I’ll just pay for it when I get the bill next month! That’s when we “nickel and dime” ourselves into that never ending cycle of debt. We need to get our spending under control and whenever at all possible, avoid unnecessary debt!
Those are just a few examples of small, unsuspecting ways we get ourselves into trouble. Then we have the big dollar purchases that we have to become aware of also. Such as, that brand new motorcycle, snowmobile, boat or jet-ski we just have to have or the extravagant, exotic vacation destinations, or that giant flat screen TV with the upgraded sound system. Now…don’t get me wrong, those things are nice to have and they make us feel good until the bill shows up every month and we have to figure out what’s going to get paid first and when! This goes back to distinguishing between our needs and wants and the feeling of instantaneous gratification for having what we want NOW and worrying about paying for it later. But why even put ourselves in a position to have to worry about it later, when with some adjustments and a little sacrifice now, we could avoid any worry at all.
Once we realize and figure out how and where we’re spending our money, then we need to figure out what adjustments can be made to stop the madness. This is where we need to be creative and/or make some tough choices (or sacrifices). Bring coffee from home or use the coffee maker at the office, bring lunch from home, prepare food at home for dinner more often, try a “stay-cation” by exploring and finding great places to visit near home, when we get the itch to get back on a motorcycle again, get that snowmobile, boat or jet-ski we’ve been wanting we need to make a plan to put money aside until we have enough to buy it outright. When it comes to avoiding unnecessary debt, the best rule of thumb is and always will be…if we can’t pay for it in cash (or pay the bill in full when it comes) then we shouldn’t be buying it at all! I understand it’s always easier said than done, but if we’re serious about our financial well-being and getting our financial house in order, then we need to get serious about our spending habits.
Before you go, I want to invite you to join my FREE email list community. By signing up today, you’ll get notifications of my latest posts. Plus, access to my FREE Resources Library. Click Here to sign up!
