What’s inside: 5 pro tips to live and stay debt free;sponsored by Houghton-Mifflin Harcourt.
Despite how much I love the holidays, it’s always areliefto be done with holiday expenses!This year our family madea lot of homemade gifts and focusedon traditions (instead of things) to have an awesome Christmas without breaking the bank.
Livingdebt free is important to our family’s financial future, sowe take special care to make sure our holiday spendingstays in control.
The tips are meant to help you stay debt free, but I believe they apply to everyone trying to feel more on top of their finances. (And just to clarify,when I say debt free, I’m excluding things like a mortgage, as houses are usuallydifficult for most people to buy up-front).
Since I handle our family finances, I found this book fascinating — I read half of it in one sitting!It covered everything from job benefits to retirement planning, but there were five tips to help stay debt free thatI just had to share!These are great financials habits to startnow (and easy enough to do so today!)
Five Financial Habits from the Pros to Stay Debt Free
Keeptrack of spending.Accountability is crucial! If you have to go back and tally every single dollar spent for the month, you’d probably discover it’s actually more than you thought — and you’ll be less inclined to spend as much next month. There are even free apps which make it super east to keep track of your spending — check with your bank to see if they offer one.
Use real money for purchases. Avoid building up credit charges that you’ll have to face at the end of the month. Whenever you can, try and pay with cash or a debit card. Seeing your money leave you in real time can make the purchase more painful, and usually will force you to ask the question “Do I really need this?” If you do purchase on credit, pay the bill in full every single month.You never want to build up credit card debt and pay needless interest unless it is an absolute emergency situation. (See number 3)
Never assume it won’t happen to you. Emergencies happen when we least expect it, so it’s important to be prepared at all times.Start building a strong emergency fund now and you’ll thank yourself later (hopefully you won’t have to!). Depositset amount from each paycheck into a savings account so it’s done without you thinking about it, but will be there when you need it.
Automateto avoidmistakes. Like most people, I have a thousand things on my mind at any given time. It’s only human to forget to pay that credit card bill off at the end of the month or the electricity bill that falls on an odd day. Why not take that off your to-do list by setting up an automatic payment? Not only can automation help build a savings account (#3), but it will also keep you from racking up needless late fees on bills and reduce the stress of trying to remember every single deadline.
Don’t flex your willpower muscle if you don’t need to. Have you ever noticed it’s easier to avoid cheating on your diet in the morning versus at night? That’s because willpower is actually a limited resource that gets weaker the more you use it throughout the day. Simply remove the temptation of unnecessary purchases by avoiding them!For example, unsubscribe from those retailer emails that seem to all have the best sale ever. If you find that you make a lot of online purchases late at night, put the computer away and read a book before bed instead.
Want to know ALL of my money saving tricks, including the one thing our family does that saves us over $1000 every month? It’s all inside my ebook Secrets to a Successful Single Income Budget! CLICK HEREto find out more!
None of these five tips require a major lifestyle change, but done together, they could add up to major savings for your budget and help you stay debt free!
The One Lifestyle Change that Allowed me to be a Stay at Home Mom
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Stacey aka the Soccer Mom
Stacey is the creator of The Soccer Mom Blog, a Houston Texas mom blog that focuses on positive living for women and families. She loves to share real food recipes, money-saving tips, parenting encouragement, kids activities, DIY tutorials, home hacks, fitness, and so much more! To get to know Stacey even better, click here.
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This way you won't forget a payment. Just remember to include any of these payments in your budget planning. If you prefer making manual payments, set regular calendar entries for your bills. You might decide to pay all your bills once or twice a month.
This way you won't forget a payment. Just remember to include any of these payments in your budget planning. If you prefer making manual payments, set regular calendar entries for your bills. You might decide to pay all your bills once or twice a month.
Get used to living on 90 percent of your income while 10 cents of every dollar gets put away. Some people call this “paying yourself first.” Whatever you call it, follow this rule and you will soon be on your way to building a very comfortable nest egg.
The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals. Let's take a closer look at each category.
The regulation requires that multiple purchases during one business day be aggregated and treated as one purchase. Purchases of different types of instruments at the same time are treated as one purchase and the amounts should be aggregated to determine if the total is $3,000 or more.
It's a simple rule, but it's still the most potent piece of money wisdom: don't spend more than you earn. Living within your means is a sure-fire way to stay out of debt, avoid creeping interest costs and create financial stability.
While the specifics vary somewhat among the different chapters, the most common examples of non-dischargeable debts are: Alimony and child support. Certain unpaid taxes, such as tax liens. However, some federal, state, and local taxes may be eligible for discharge if they date back several years.
“Shark Tank” investor Kevin O'Leary has said the ideal age to be debt-free is 45, especially if you want to retire by age 60. Being debt-free — including paying off your mortgage — by your mid-40s puts you on the early path toward success, O'Leary argued.
Financial habits and norms are the values, standards, routine practices, and rules to live by that people rely on to navigate their day-to-day financial lives. They support the ability to effectively manage money and respond quickly to financial decisions or challenges.
Maintain a routine. The most common habit of highly successful people is to have a daily routine. Creating and maintaining a routine for each part of your day can help you to constantly work toward your goals, engage in positive actions and ensure your productivity.
One of the most iconic hallmarks of old money is a preference for high-quality fashion brands, often reflecting classic, enduring designs that stand the test of time. "The old money lifestyle is defined by sophistication, understated elegance, and an appreciation for the finer things in life."
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