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Lessons on Managing Bills and Budgeting
My key to success with staying out of debt is simple: don't buy what you can't afford. This is something I'm still teaching my wife. I find that budgeting helps a lot with keeping debt manageable. Pay your bills first and then use what's left to buy food and go out. For my wife she tends to buy things she wants when she gets paid and then finds out later she doesn't have enough money to pay her bills and especially pay them on-time. This usually results in bank fees and late fees which just compounds the problem and leads her in a downward spiral. Part of her issue though is she has more debt then income. I help with this and am providing her money so she can pay her bills on-time and not incur late fees which is helping with the overall situation. Still, for her, she's looking at getting a second job so she has more money coming in then going out. We're also reviewing expenses and trying to live more within our means. Part of this is getting her on a budget and paying her bills for her so they get paid on-time and in full and what's left is what she gets to spend on gas and other items. For me I understand my spending habits which is extremely important. I know that if I have cash in my pocket it gets spent so I try not to keep any cash in my wallet and use my debit card. I also understand though that if I go out drinking I may spend more if I use my debit card then if I have a specific amount of cash so I know once it's gone I quit drinking. Another thing that I alluded to earlier is that I pay bills first when I get paid. I get paid bi-weekly so as soon as I have money in my account I pay my bills that are due for the next two weeks. Learn more about strategies to Get Out Of Debt by increasing your income through debt-free Real Estate Investing

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