You've worked so hard to get out of debt. The last thing you want to do is create more debt that will weigh you down.
So, how do you avoid getting back into debt? The truth is it requires a bit of work. Whether it means saving for the things you want or only charging items that can be paid off immediately, there are ways to avoid getting back into debt.
Follow Your Budget
You got out of debt by creating a monthly budget and following it, and you'll stay out of debt by continuing to create and follow your budget. Each month, decide how you're going to spend each dollar of income (including savings) and be disciplined enough to stick with it.
Cut Your Expenses
Cutting your expenses can greatly reduce the chances of needing to go back into debt. Look at anything you're paying for that you don't use. It might be magazine subscriptions, gym memberships, your cable service, etc. You might also look for ways to save money on the things you do use. For example, you can switch to another cell phone company to save money.
Save for the Things You Want
One of the best ways to avoid going back into debt is to save up for the things you want. For example, you might want to replace your TV. Determine how much you want to spend and then save up for the purchase. Remember, most expenses aren't worth the misery of being in debt.
Have Emergency Accounts
Hands down the best way to avoid going back into debt is to have emergency accounts. This prevents the need to whip out the credit card whenever you have a blown tire or an emergency room visit. Another great tip is to have accounts for different things. For example, have an account for health, one for house repairs, and one for miscellaneous.
Do Small Gigs as Needed
There are times of the year where you'll need additional money. When those times arise, look for ways to earn extra money. You might babysit, do yard work, etc to earn extra money. This is much, much better than having to work to pay off the debt.
Debt is so hard to get out of. Once you do, you never want to take the chance of going back into debt. Follow the tips listed above and you'll have a much better chance of staying out of debt.
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