Are You On The Edge Of Debt?
This is a collaborative post and may contain affiliate links.
Debt is something a lot of people are afraid of, and often rightly so. Because of that, people are often super cautious with the money they have in the bank. That is, until a night out comes up or a big expense that’s suddenly on a good sale.
You obviously want to have fun and use the money you work hard for, but if you get too into the swing of this kind of lifestyle, you can just spend and spend and spend, and soon debt is just through the door. So now’s the time for you to sort some things out and make sure your financial life is on track. If you’re on the edge of getting into debt, here’s a couple of the best ways to push it away.
Know What You’re Spending
When debt is on the horizon, you already know this is one of your weak points. When you think about spending you can moan and groan, and head down to the reduced section of your local supermarket and try to do the entire weekly shop there, but you’re not going to have much success. Spending is something we all do every day, and it’s going to be hard to cut back when you don’t have a proper plan of attack.
To form a good plan, you’re going to need to know what you spend already. How do you allocate out your funds at the moment? Do you think you’re doing it well? Sit down with your banking app or your most recent bank statements and take a look through your finances. You can always do some shifting and tweaking to make things better. If you start tracking your finances and categorizing where your money goes, you’ll have no problem seeing the areas where you could be saving. Plus, when you’re saving on a few transactions, the dollars start to add up really quickly.
Read Also: How To Track Your Monthly Expenses
Check your regular bills for potential savings as well. You might think it’s impossible to change what they’re charging you each month, but you can always try to talk to the provider and negotiate the prices. They won’t want to lose a loyal customer, so with enough confidence you can get through to a person who will agree to lower the price to something more fair!
Know Your Options
Finance options that promise to change your life in an instant are usually lying to you, and most likely will come down to taking out a loan that you’re going to have to pay back with a high interest rate. So don’t get taken in by dressed up words and fancy TV commercials. Make sure you’re money savvy enough to know the actual options to increase the debt border you see closing in on you.
Loaning doesn’t have to be all evil, and sometimes it’s a great resource for you to look into. However, it’s not the best way to get yourself further from the edge of debt. Considering you’ve got the entire internet at your fingertips, now’s the time for you to get to know your options and build up your bank account as a result.
You can read up on a quick list of money making ideas that might strike some inspiration in you. You could devote some time and effort to creating something as a side hobby and selling what you make online, or you could start a blog. The list goes on and on, and more and more options are coming out every day! It’s going to take some time, but it’s the commitment that makes options like these pay off more than a short term loan could.
Stick To The Plan
Always easier said than done! We go into budgets with plans to decrease our spending with the best intentions, and a lot of the time we let go of it too soon to see savings. We think our finances are more stable just by having a plan, but it’s more of a marathon instead of a sprint. It’s not enough to just have a plan, you have to stick to it also.
If you put a budget in place and then let it go when you get bored of the effort it takes, you’re going to put yourself in a bad financial position that’s going to keep on getting worse until the mistake is obvious. That could ruin your credit score, your ability to have a stable rent payment each month, and ultimately, your attitude and mood.
The best thing to do to make sure you’re always thinking about your budget is to make your expectations realistic. You’re not going to have an extra $100 in the bank by the end of the week just because you cut out a morning coffee, but you could very well have that by the end of the month! That’s just going to increase the longer you keep at it.
Ready To Step Back From The Edge?
If not, don’t worry. Money can seem awfully complicated most of the time. If you’re just setting out on your own or with a young family, you’re going to make mistakes before you learn what works for you. But you don’t have to fall into debt if you’re always vigilant of the big financial picture and how you fit into it.
There’s a lot of people in the world who struggle with making ends meet, and that means it’s very common for someone to fall into debt. Now’s your chance to learn to avoid it and make better financial decisions!
Disclosure: This is a collaborative post and I may have received compensation in exchange for sharing links within this post. Additionally, this post may contain affiliate links, which means that I may receive a commission if you click a link and purchase something that I have recommended, at no additional cost to you. I value your trust and only recommend brands and products that I truly love! Read my full disclosure policy here.