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Debt Prevention Tips

Keep a record of every dollar you spend

Debt Prevention Tips

This day in age it has almost become the norm to live buried in thousands of dollars of debt.
Take a stand against debt before it’s too late with these debt prevention tips.

Keep a record of every dollar you spend

If you’re going to be serious about preventing the accumulation of debt, this step is a requirement.

Find a way to record everything you spend money on…
      • Bills
      • Groceries
      • Vehicle expenses
      • Clothing
      • Entertainment
      • Restaurants
      • Subscriptions 

Literally, every dollar that comes out of your bank account needs to be recorded.
This will help you find places to cut back and save money, which means less purchased on credit.

Make a budget

Now that you have an idea of where your money spent; it is time to create a budget that you can stick to.

I suggest building an excel spreadsheet to track of everything for each month. First, record all of the following. These should be everything that you cannot live without.
       • Income
       • Living expenses (mortgage/rent, gas, electric, groceries, donations, etc.)
       • Any other financial requirements 

Now with the money left over you will need to decide how to divide it among the following.
       • Savings
       • Investments
       • Extra loan principal
       • Pleasure (shopping, traveling, entertainment, anything that is not absolutely necessary) 

If you are not good at managing your money there are plenty of tools out there to help you. The important thing is that you know what is coming in and going out. Then to make wise decisions with any money that is left.

Pay with cash

We are all so used to just pulling out the plastic for everything we buy. Paying with cash has almost become outdated.

I encourage you to give it a shot. When you only have a certain amount of cash to spend on something every month, you will be much more cautious about your spending. Because you know when it’s gone you can’t buy anything else.

With a credit card, it almost seems unlimited. Slowly but surely, the balance will continue to grow. 

Say NO to credit card applications

One last thing to help you prevent debt…say NO to all the credit card applications.

It seems like every store you go into is offering another credit card. Not to mention the countless offers you receive in the mail on a weekly basis. Who cares if you save an extra 10%! It is only going to cause you to spend more money in the long run.  

Conclusion

If you want to put a stop to debt before it’s too, try these 4 debt prevention tips. Record what you spend, make a budget, pay with cash, and say no to credit applications.

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