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Tuesday, April 24, 2012

Who is in Control, You or Your Debt?



Are you in control of your debt or has your debt taken control of you?

Sometimes it is not always easy to know who is in control of your money- you or your debt. If you have reached a point where you even have to ask who is in the driver’s seat financially then you are in far too much debt.

In order to get back in control of your money and learn to do more than just make ends meet you need to first not panic. You need a level head in order to gain control so do not lose your head over your financial state of affairs.

Prioritize Your Bills

Sit down and take the time to prioritize your bills. Do this by taking a hard look at your present financial situation. Figure out how much you earn on a monthly basis and where your money is being spent. Then figure out what your monthly expenses are and work from there. Before you can take back control you have to know exactly where every cent you earn is going.

Budget Your Bucks

Learn how to budget your money, as the majority of people never know for sure where their money is being spent. This could mean that you are wasting money needlessly and do not even know it. It is important to pay attention to what is happening with your money. This is as true for high income earners as it is for low income earners. Even if you decide on a very basic system of budgeting, find the one that works for you and then faithfully adhere to it.

Curb Excess Spending

It is important to curb excess spending as fast as you can. Whether your indulgence is eating out at restaurants, new shoes or new electronic gadgets, you need to stop overspending in order to gain control.

Stop Spending More than You Earn

In order to get ahead it is vital that you stop spending more money than you earn. This is a very simple concept that can be difficult to put into play. It is not wise to just go shopping because you are bored or just want to look around because you are liable to spend money you do not have.

Go to the mall only when you have an intended purchase in mind. This will help keep you on track. The same is true of grocery shopping. Have you ever gone to the grocery store intending to buy three or four items and come out with 15 or 20?  This can happen so easily but don’t let it get the best of you. If you need three items that will cost approximately $12.00 then don’t come out of the store with 12 items that cost $30.00.

Image: renjith krishnan / FreeDigitalPhotos.net


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