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.