Five Tips for Getting Out of Debt — And Staying Out

Everyone loves to shop. But going on a shopping spree with money that you do not necessarily have it a very bad idea. Have you ever thought about what kind of trouble you could get into if you could not pay your credit card bill?  Then again, who am I to talk?  I am a 19 year old college student.  Budgeting is part of my daily life.  Staying out of debt is an important thing — and I am doing my part to stay out.  If you have large bills — and need to repay them (yes, you do need to repay them), here are some tips:

1. Stop using your credit card! Use it for emergencies only. Need for clothes is not an emergency — but a visit to the hospital is. See the difference?
2. Group your spending into categories: Must-Haves, Wants and Savings. Try to save 20% of your income every month
3. Your must-haves come first. These are your bills, and part of your food bill (do you really need the junk food?). Next come your wants. Everyone needs some money to have fun. Set aside a budget every month — when that money is gone, you are done for the month
4. If you are debating whether or not you can afford something — chances are you cannot. Buy one version smaller. If it means the 37″ TV isntead of the 50″ TV, then so be it.
5. Read the book All Your Worth: The Ultimate Lifetime Money Plan by Elizabeth Warren and Amelia Warren Tyagi. The book explains what I have talked about above — but in more detail. This is a great book for anyone who is in trouble, has been in trouble or wants to stay out of trouble