Watch Out For Debt To Gain Financial Control

Are you in debt? Have you carried this debt over time and suspect it may be difficult to get ahead? Have you ever thought there could be good debt and bad debt? I thought I’d share a few simple guidelines to expand your awareness and get you back on track.

1. Establish a budget. You may have heard, “What gets measured gets managed.” Sit down and record your monthly expenses. Prioritize them so you can see what might be addressed to tighten the budget as necessary. Many people don’t realize where their money goes each month because they don’t take time to detail all the areas their money is applied.
2. Stick to your decision. If you really want to change your current financial picture, you need to establish guidelines. Your budget is a guideline established to help you meet your goals. Measure everything that comes in and goes out. Ask yourself if you really need the things you purchase on a regular basis. Can you cut the spending to have more than enough coming in each month? If you can delay or postpone all together a purchase that’s not necessary, this one act will put you closer to your goal.
3. Pay attention and be open to learning new habits. Notice the types of things you are spending your money on. Can you shift buying patterns to give you more value? Perhaps you can plan to make coffee at home instead of purchasing an individual cup of coffee everyday. Cook meals on the weekend and reheat leftovers during the week to reduce food costs. Watch for instant gratification purchases. Ask yourself how you might shift to create a situation that fits with your budget.

A better financial picture starts with you choosing that you want to get control over your current financial situation. Taking action and working each month will strengthen your ability each month. The planning you’ve done on making your budget will give you a great foundation to build upon.We’re here to help you. What questions do you have? Pay Your Family First is a company dedicated to providing financial education for families. Our goal is to ignite the entrepreneurial spirit and a love for learning. Join us! www.payyourfamilyfirst.com. – – – – – – Sharon Lechter CEO – Pay Your Family First Co-author of Three Feet From Gold and Rich Dad Poor Dad Member of the President’s Advisory Council on Financial Literacy Member of the National CPA’s Commission on Financial Literacy of the AICPA.