I’m in debt, I have to pay my debts! How do you know if you are in debt? It’s tricky, but most people do not usually make too many bills in their day-to-day life, and only realize they’re full of debt when it’s too late. Carnations that do not stop arriving, charges by phone, letters, e-mail … It is to take the sleep of anyone. Do not wait to get bogged down in debt to take action, start now!
The first step is to put on paper all the bills that you need to pay in the month. Do not lie to yourself, put ALL the bills, from the breakfast roll to the purchase on the card you’ve hidden from your husband or wife. Add everything. After that, add up all the proceeds that will be used to pay these bills: benefits, salaries, wages, commissions, rents, receipts, everything. Now the account is simple, take the total of the revenues and reduce the total expenses. So, did you get scared by the result? If the value was positive, congratulations! Now it’s negative, it’s time to do something about it, do not you think?
Being between heaven and hell (in the red) is not a comfortable situation for anyone, but getting lamenting also will not solve the problem. If you’re spending more than you should, there are only two solutions: either you increase your revenues, or you lower your costs and expenses. Using your money consciously, making financial planning and respecting your limits is the ideal recipe for anyone who wants to thrive financially, make money more and build a better quality of life in the long run for you and your family.
The marketing industry produces more and more consumer items desired by many people every day, everyone wants fashionable clothes, fashionable cell phones, the most modern computer. The incentive to consumption, the increase in the use of disposable products and the constant evolution of the electronics and household appliances makes the purchase volume of these items is much higher than it was some time ago.
But is there any formula for avoiding debts? Formula maybe not, what exists is the exercise of your conscience and respect for your limits, according to your budget. Before buying anything be honest with yourself and ask yourself: Do I really need this? If the answer is yes, ask yourself another question: Do I really need this now? Stipulating buying priorities is a smart way to spend your money on what you really need and avoid spending on futile or impulse-bought items.
Money is a bargaining chip, but it can not be synonymous with exchanging a quiet life for a life full of worries about debt. Follow the tips you’ve read above and see the result yourself! Building a healthy and prosperous financial life can be the key to a future free from worry and full of happiness and accomplishments.