Get Debt Free by Controlling Spending
Debt is a burden that many of us carry. For some of us the level of debt that we have is manageable. Unfortunately for many of us our debt is becoming unmanageable. Week to week and month to month we juggle our money in an attempt to make our payments. Now there are many ideas and plans floating around on debt reduction and management. But to implement any plan on working with your debt you are going to have to confront your spending habits.
You see in order to get any kind of handle on your debt you need to understand your spending. You need to know where your money is going on a daily, weekly and monthly basis. Now I can hear you already, yes you know how much your rent/mortgage is and how much you spend on utilities monthly. It is the daily small unaccounted for expenses that really eat away at your money. We go to the store and pick up the latest impulse buys, eat lunch at the drive-thru because we are in a hurry. These expenses add up pretty quick. Now I am not going to ask you to sit down and try to remember every thing you have purchased the week or so because you won’t remember, I know this because I don’t remember every little I have made.
I want to acquire a small notebook. Carry this notebook with you everywhere you go and record every single purchase you make in it. No matter how small or insignificant you think the purchase is record it in the notebook. Do this for the next thirty days, record every single purchase you make for the next thirty days in this notebook. Don’t change any of your habits while doing this, you are trying to get a true reflection of your spending habits. In addition don’t review this notebook yet just record your spending, all of it.
Now at the end of this thirty days it is time to review your spending. Get out your notebook. You have before you a complete thirty day history of your spending. If you are like me you will find some things you don’t like. I am sure you will find some surprises. Now you will discover how much StarBucks is really costing you, and how much you are really spending on fast food. This where you sit down and make adjustments to your spending. When you do so you will find yourself freeing up money to start paying down your debt. After you are done with the review plan to change your spending and continue to record your spending. Who knows you free up more money the next month.
I wish you the best in your goal of becoming debt free.
William Witt, http://ManageMyDebt.blogspot.com. For further information on becoming Debt Free visit my blog.
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