Saturday, May 09, 2009

Logical spending with your cash

Turning your finances around is a logical game. It needs a lot of great effort to be able to do this. The most important step is to pay off your existing debts and become debt free. When you are going through this emotional ride of paying for a debt, you will have this in your mind and you will never make this kind of mistake again that led you reach to this point.

Presently, due to the recession, it will be a dream comes true if you manage to come out of debts. Take the time to think if you were not contributing a portion of your budget for the debt payments. What happens to that extra money if you did not have any debts? What will you do with the extra time if you do not devote it towards some part time job and earn money to pay off some of your bills?

If you have a huge amount of debt, paying high interests on the principal amount will never let you rest in peace. Besides, constant calls from the credit card companies asking for payments will be highly annoying. Have you ever realized why this is all happening?

Spending excessive amount of money for designer clothes seems logical. If you have been stressful at work for the whole week, then you will definitely need some therapeutic shopping. After a month, the bills will come and you realize that you don’t have the money to pay it back. Is that true stress reliever?

You should have a total control on your spending habits. If you are earning $1000, you should not be spending more than that amount, otherwise you will fall in debts. And the fact is that most people do not realize this and they make this mistake. It is easier to swipe a credit card and make the purchase, but paying the amount back in the due date is a different story

Protect yourself from spending haphazardly with your credit cards. If you can’t use your credit cards properly, then you should throw it away. You should instead live on cash or a debit card.
When you are in the process of getting out of debts, be in your control and use the strict regimen of “buy as needed”. Monitor your bills regularly and don’t spend on things that you don’t need at all. For example, a gym membership that you hardly attend to or that expensive cable TV package.

By keeping it up with the effort to revolutionize your spending habits in your pursuit for a debt-free life, you will soon be rewarded with the life without the hassles from debt paying. Only by having the relief of living a life debt-free, will you get more out of life.

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