Some people are completely unable to live within their means. They willingly take various loans and credit cards, but do not always think about the consequences of their actions.
Necessary
- - notebook;
- - pen;
- - calculator
Instructions
Step 1
Control your expenses. It's important to see what is to blame for the gap in your budget. Record all your purchases and expenses to determine where the money is going. Create a special notebook or install a computer program that allows you to put your personal finances in order. Consider spending for three months, and then look at what categories of goods and services the lion's share of your funds goes to.
Step 2
Live within your means. Your expenses should be commensurate with your income. If your salary is very modest, you will not be able to live in a big way without getting into debt. Everything seems obvious, but some people continue to want more and chase things that they cannot afford yet. If you are one of them, proceed to the next step.
Step 3
Find a way to increase your income. You may not have realized all the possibilities in your work. Try to get a promotion, and therefore a salary. On working days, think less about shopping and more about how to be in a professional sense. Maybe you have a hobby from which you can earn additional income. Tutoring, website design, anything can make money.
Step 4
Calculate how much a credit card costs you. Maybe you just don't realize how much money you are losing on interest. Sit down with your notepad and calculator and count how much money is going to the bank. If you are not impressed with the amount, convert it into some valuable things for you. You could have them if you spent the money as it came in.
Step 5
Set yourself a time frame during which you need to reduce your expenses to a minimum in order to get out of the debt hole. At this time, you will have to give up many of the usual purchases. But as a result, you can start a new life, without debt and credit cards.
Step 6
Get rid of your shopping addiction. Think about why you are so fond of spending money, and whether you sometimes buy unnecessary things. Some people are trying to compensate for some kind of inner emptiness with thoughtless purchases. If your shopping trips are getting out of hand, you may need to resolve some personal issues.
Step 7
Buy smart. When you start a new life without debt, buy only the things you need. When going to the grocery store, make a list. When you feel like making a spontaneous purchase, give yourself time to think. Perhaps in a day you will realize that this is a waste of money.
Step 8
Realize responsibility for your life. Think about your future and what will happen to you if you do not learn how to manage your own finances. Debts tend to snowball. Until a person decides that it is time to change his attitude towards money, the swamp of loans will suck him deeper and deeper.
