You've Overcome Your Debt...Learn To Prevent A Debt Recurrence
A beautiful feeling of relief comes after you've destroyed the every single debt you owe. Be proud you've accomplished this, but beware. Some people who've just got out of their debt are quick to get back into debt. And if you're one who tends to get into debt trouble, chances are you may be exposed to the same temptations to spend, and the same impulses to pull out your credit cards with no thought for tomorrow. You see, personal finance budgeting is all based on discipline.
For those who do backslide, self-destructive habits kick in again so they can support their old lifestyles. Often these people are aware of a sense of disconnect between their finances and the world they would like themselves to believe they should have. Living in a kind of fantasy world, they keep on spending everything that comes to them without realizing how much more a discomfort it is to be buried in debt than to not possess expensive things.
Accumulating personal debt is a problem a lot of Americans face. Owing over $800 billion in revolving debts (excluding mortgages and car loans), a lot of them are lower and middle class family members. The spectrum includes those who truly need the borrowed money (the breadwinner father trying to find a job; the disease-stricken mother whose credit cards cushion her medical bills) and those who just spend more than what they earn.
You see, priorities mean priorities. Any time you make out a personal budget spreadsheet, it has to be based on a plan you can stick to, and will adhere to, even though your impulses pull at you to leave the plan. The act of putting aside money for specific bills isn't any different from the act of carrying out the payment of those bills, and not spending the money for other things... like designer clothes.
Be conscious of your spending impulses. Only you can really get to know and accept your tendencies, and how you deal with your desire. Being a tightwad and dollar burner are two ends of the spectrum of money-related behavior. It's in the mind. When you know certain buying trends have an effect on you, avoid them. There's bound to be something that will keep you occupied enough to be distracted from impulse purchasing. Try other hobbies. Stay away from malls. Put down that magazine when you see enticing ads and sales promos. If you cannot absolutely remove yourself from enticements, you have to decide to cut down on the cost.
Always try to enroll in automated payments for your regular bills, so you don't see excess unused money and be tempted to spend it. The good thing here is that since a certain amount of your money is already deducted and channeled into needed payments, you won't have to decide on where to spend such money. This default spending decision is actually what spares you from thinking about overspending, or misspending.
Cut up your personal budget spreadsheet into different categories -- cable, gas, etc. That way you can see just how much you spend for each category and how much gets left over once you pay them all off. Just knowing this allows you some amount of control.
Who else will worry about your future? When do you intend to retire, and afterward, what will you do? Have you figured out your kids' budget for education? You need to stockpile money while you can; that way, like a squirrel during winter, you'd have no worries about spending.
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