A parents’ guide for getting out of debt.
1. Your net not your gross.
Even though your annual salary is $100,000, you are actually making about $70,000 after taxes. You should plan to live on $70,000 annually not $100,000.
2. Needs not Wants.
Do you really need the latest LCD TV, hip iPod, or designer jeans? Most likely the answer is NO. To get out of debt you will have to fulfill your needs not you wants. Yes, we need grocery, clothes, and means of transportation. But do we need to drive a 2008 Hummer, dress in a Gucci suite and spending $50 on lunch. If you want of get out of debt, I don’t think so.
3. Go to the museum this weekend.
Most of us immediately think of going to the mall on the weekend, but there are other less expensive alternatives such as the museum, park, beach or special events at your local library. Think about all that junk you have in your storage closet you bought at the mall that you never used. Most of the time these public place charge a very low price or none at all. The best things in life are free.
4. Stick to your Budget.
If $50 dollars is your budget for every week, you should stick to it. If you go over by $10 one week, then your budget for the following week should be $40.
5. Don’t give into your kids.
Teaching your kids financial responsibility should start at an early age. You must be firm with them. If they get $25 every week, then that is all they should receiver no more no less. By helping them manage their money, you are actually helping yourself to manage yours.
The money you save by implementing these five simple steps will help you get out of your debt and ultimately help you actually save a few dollars. Stop telling yourself you can’t do it; rather, ask yourself how can I start implementing the five steps above.
Every cent counts.