In order for you to save yourself from debt, all you have to do is follow these three simple rules.
The first rule is to track your spending habits. For every penny that you spend, make sure to keep a track of every single penny. It may just be paying your bills, buying the groceries, or even buying a newspaper every penny counts. Have a habit of making a list of the things you have spent and by the end of the day tally it to the amount that you have set aside to be spent for the day. Is the amount higher, lower or just the same? If what you have spent is higher than the budget that you have set, then you are in big trouble and later on debt will choke you. If the amount you have spent is lower, then you are in the safe side. However, if what you have spent is the same than your budget, then you have learned to spend your money wisely.
Second to the rule is to pay in a bi-weekly basis. If you already have an existing debt, then you have to make sure that you pay. Do not wait for the whole amount to come before you start paying. Start when you already have even a little extra to pay. Make it a habit to pay bi-weekly because it is easier and less hassle when you pay in little amounts. You also won’t have to worry because when you pay it reduces the debt you owe. Take for example you pay $50 or $100 every second week of the month. In just a month, you already have paid $100 or $200. Before you know it after a year, you have already paid your debt. You will be surprised as to how so little you have paid and yet it made a big difference in your financial status. Slowly the snail reached the ark just as you will reach the ark of debt free.
The last rule is to build a savings account. You can either have both, your own piggybank at home and one in a bank near you. Determine within yourself to set aside a dollar or two for your savings. You can even put in loose change in your own piggybank at home to help you out whenever you are in need of cash; this is what you call savings within your reach. Choose a bank that holds high interest rate so that your money/savings will grow at least 3-5% in a year. Always ask questions about the bank’s way of managing savings account so that you will not be ignorant as to how they work. Have a good conversation with the bank manager so that you will really be sure and your money will be ensured that it will be able to help you whenever you will need it. Once you have selected the right bank for you then you can start opening a savings account.
If you decide to follow the rules above, then you will be sure that you will not have anyone or any organization asking you to pay for your debt. Determine to be debt free today and in the years to come.