No one wants to go into
debt. We try to avoid it if we can, but we
fall into the traps of credit cards and
delayed payment specials so easily. Curbing
our spending requires discipline and an
honest effort.
As consumers, we have to learn to live within our means. This is more than
having enough money in a paycheck to pay our bills. Financial security is
having something in a savings account and money left over from our paychecks
to use in an emergency if we need it.
Living paycheck to paycheck can be dangerous, especially if you have a
family. Children get sick; cars break down. Taking money from the bills is
not a wise decision, but if you are in a bind, you do what you have to do.
The way to break this cycle is to spend less money each month.
Everyone wants to know how to do that. Discipline begins with a plan. A
sound financial plan begins with a family budget. The first budget will be
the hardest to develop, but once you get the hang of it, it won’t be so
time-consuming the next time.
A budget is only as good as the people using it. Keep yourself accountable
to someone — your spouse, your friend, your parents. Have a person who will
call you out if you are spending too much money.
It takes two weeks to make or break a habit. Start at the beginning of a
month and try out your budget. If you eat out for lunch at work, why not
prepare your lunch for a month. Include lunch items on the grocery list and
pack your lunch the night before.
Spending less requires changes in other areas besides the finances. Lunches
for the kids and yourself can be fixed at night so no one forgets in the
morning. Thaw out a meat for dinner in the morning so there is no excuse to
eat out. Leave notes on the bathroom mirror and the refrigerator if you have
to until you get the hang of the new way of doing things.
Don’t run out armed with your credit card or checkbook each time anyone
wants something. Ask if it is necessary to have that particular item. Search
around the house first to see if you already have it. I seem to buy a new
pack of crayons each time my kids have a project. At the end of the school
year, I find at least five boxes of crayons lying around. I would only have
invested in one if I had taken the time to look. Okay, crayons aren’t that
expensive, but it is the discipline that we are going for here.
Don’t alter your new spending habits when you get a raise at work or a
holiday bonus. Treat the extra money as a way to save more. Don’t include it
in the monthly budget. Simply take the cash and put it in the savings
account.
Spending habits don’t change overnight. It takes time to change a shopaholic
into a frugal fan, but it can be done when you try.
Recommended Reading
Debt Free
In Three
Thanks to this guide complete with
worksheet and personal coaching, my family
and I will be complete debt free in 42
months (including paying our house mortgage
in full). The principles taught in this
program are simple, yet incredibly powerful.
See for yourself.
Click here to get Debt Free in 3 to 5 years. |
