These days it is not that hard to make money. You just have to know where the money is and do whatever it takes to market yourself to get a job in that field. If you have time you can take on a part-time job with your full-time job as well.
But making all the money in the world will do you no good, if you don’t have the wisdom to know how to make it work for you. The end result is you could end up living paycheck to paycheck. This article will look at Debt and how to manage it.
The most obvious solution, and the hardest to put into practice, is budgeting. This is the practice of allocating so much money to various categories; i.e., rent, utilities, phone, Wi-Fi, groceries, dining out/entertainment and leisure, auto, vacation, savings/investments, etc. Legendary financial guru Dave Ramsey refers to this as the “envelope system”. Although it’s hard to put money into an envelope if you don’t see it because it is all on a card. You can use budgeting software or Microsoft Excel in place of envelopes.
Take advantage of bargains such as coupons in Sundays’ paper. You would be surprised by the money you can save on items that you buy frequently. Another way to save money is to take advantage of surveys that many restaurants and fast food eateries have on the back of their receipts these days. You fill out a survey and get a free meal or a free side item.
Keep credit card balances to a minimum. If you never took on debt you would still have a low credit score of “0”, or 350. Keeping a credit card and either using it for emergencies or paying it off within a month is the best way to build credit. The longer this account stays open the higher your credit rating. Just don’t ever fall into the trap of paying the minimum payment as this could take about 35 years to pay off. You don’t want to pay for that Frappuccino at Starbucks three and a half decades down the road.
Don’t get into the trap of thinking you have to buy new all of the time. For clothing you can checkout discount stores and thrift shops, clothing drives, garage sales, or even the clearance rack at any department store.
Since rent and transportation are the largest expense, see if you can find less expensive accommodations, even for a few years. Another option is to take in a roommate. For transportation you can take advantage of public transit if you don’t really need a car or save up and buy cash for a car. You can get a fairly decent car in the low $1000-2000 range that isn’t much more than a decade old.
If you choose to take out a loan to purchase a vehicle then try and find the oldest car you can get with the loan. The good news is it will help you build your credit. Just don’t think you have to get something brand new since new cars depreciate by half as soon as you drive them off the lot. They pretty much level off by the time they are 2-3 years old. Many auto loans with banks and credit unions allow you to finance vehicles as old as seven years for only three years since you can’t get full coverage on vehicles over ten.
If you apply some discipline to your financial life and live according to the above principles you will have a better work-life balance because you will have more money to spend on your leisure activities.
If you truly want to make your money work for you, there is a way. If you need help getting organized after making mistakes then the good news is that you don’t have to fight alone; just contact the Debt Ninja and let him fight your debt on your behalf.
Call the Debt Ninja for a brief consultation at 1-888-652-4178 and watch him use his nationwide resources to achieve the maximum relief for your situation.