budget © by 401K
We all want that get out of jail free card when we play Monopoly but the reality of life is there is no get out of jail free card. There are consequences that come up in life. One of the biggest consequences Canadians are facing today is debt. We are taking on more and more debt, and seriously we are not getting a great handle on it. Do you know according to a recent Canadian Living article almost half a million Canadians are behind on their credit card bills by more then 90 days! That number is huge. We do not need a get out of jail card to fix the problem. We need a plan.
So what do you do when you find yourself buried in debt, YOU, have to have a PLAN!
1.First OWN your debt.
List it all out. Know how much you owe, and where. Know the amount of interest you are paying each month. You dug the hole, and now you need to know how deep it is.
2. Pay HIGHEST interest rate first and more often.
You want to get rid of that interest rate. Why spend what you work hard for on interest, so tackle this first. The more you can lower your interest payments the better for you.
3. TRACK your spending.
You need to know how you got to this hole in the first place. Track your spending for 90 days. Look at your habits. Do you go out for lunch often, shop for junk or do other things that are driving your debt load higher.
4. Set a BUDGET.
In our world today there are many ways you can set a budget. Use paper and pencil, software or even an app. All of these can help you as you learn to budget your money.
5. Get HELP if you need it.
I had to go so far as to speak to a bankruptcy trustee. There are people out there who can help you get through the dark days of debt, and trust me living debt free is so so much better. If you need help, ask, don’t be ashamed. I learned a lot going through my bankruptcy.