If you are up to your ears in debt or worry that you could end up that way then you need to know that it is not an inevitability that debt could end up in the driver’s seat of your life! You can still be the driver!
Whether or not you end up in debt is not simply a roll of the dice. While getting into debt is sometimes due to mitigating circumstances it is still within your grasp to be in control to the best of your ability. It is important to control your debts and not let them control you. Controlling your debt destiny is about making the right choices and being disciplined when it comes to how your money is spent. Controlling your debt destiny also involves being aware of how much money you earn on a monthly basis and knowing when all of your bills are due to be paid.
Overspending is a No-No
Surprising to some people, it is spending too much as opposed to earning a low income that is at the root of most financial problems that lead to debt. Some life problems cannot be planned for such as loss of employment or a loved one getting sick but for a great majority of people it is spending that causes the problem, or more to the point, overspending. The key to learning how to handle money is not learning how to spend it wisely but instead learning how “not to” spend money.
It seems to be a fact of life that the more money a person brings in, the more money he or she spends. This includes everything from a larger home, to a better car to a newer computer to a bigger television, etc. The little everyday purchases can increase as well and all of these items can add up very quickly.
Many people find that although their income has increased they feel as if they are bogged down by too many debts. Spending is usually the culprit in this case. You will never get ahead if you keep spending and spending, no matter how much money you are earning. A high-income earner can find themselves in debt as easily as a low-income earner.
Define Your Monetary Goals
One of the ways to prevent this from becoming your lot in life is to define your monetary goals and then faithfully adhere to them. If you are saving to take a trip in a year’s time then don’t go out and charge a 53-inch plasma television on your credit card, especially if there is talk of potential layoffs at your workplace.
When you are tempted to spend clearly visualize your goals in your mind and hold that picture there. Keep it steady and keep it firmly cemented in your head. Then fight the urge to spend your hard earned dollars. You can do this! Determine to win and set yourself on the right course. By so doing you will be in control of your debt destiny. It will be you sitting in the driver’s seat and you will leave debt in the dust.
You are in control of your debt destiny- repeat that to yourself!
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