Keep your spending under control

As cliché as this may sound, budgeting is the foundation to living a financially healthy life. Easier said than done right? To make your way out of debt and keep out of debt you’ll have to find practical ways to keep your spending under control. Also keep your spending impulses in check and learn to cut your spending according to your budget.



Uncover cash flow problems

Basically, cash flow refers to the money that comes in and goes out of your account(s) over a specified period of time. If you barely make it through the month or you have just enough and can’t save at least 10% of your monthly income then that is a red flag. Review your spending patterns, figure out the expenses you can cut back on or spread over a longer period.

Draft a debt repayment plan

Nothing aggravates a debtor more than the silent treatment. Stop refusing to pick up your phone and pretending like your debt does not exist. Make a list of every one you owe. Figure out how much you can pay towards your debt each month. Stop incurring new debt and make a plan on how to pay off your current debtors. Be consistent and you will soon pay off all your debtors. Once this is done you are not free to start spending your debtors debt on yourself. No open up a savings account and learn to save and grow your wealth.

Source: www.nerveng.com