Become Debt Free Through Family Budgeting

jjmyles By jjmyles, 3rd Mar 2015 | Follow this author | RSS Feed | Short URL http://nut.bz/i0a9d0rr/
Posted in Wikinut>Money>Debt

You can greatly improve your financial life by becoming debt free Just a real basic bit of financial understanding can help you do this . If you follow simple steps towards your goal you will achieve your goal.

Getting Your Financial Life in Shape

Financial freedom is interpreted in many different ways. For some it may mean opulent wealth, For others it simply means not drowning in debt. I know that the second interpretation is the most common one. But with the economy in such a precarious state how can we keep from drowning in what seems to be a never ending sea of bills and interest payments? Well, I have one word for you: Budget.

Before we get started I will first say that I am not a certified accountant or a bookkeeper so I had to educate myself on financial matters. The way I went about this was to read the information available by those who I consider are the experts in personal finance.

Some of the books I've read and studied are as follows:

"9 steps to financial Freedom” and “Road to Wealth” Both written by Suzy Orman.

“Rich Dad Poor Dad”, “Increase your Financial IQ” and “Cash Flow Quadrant” Written by Robert Kiyosaki.

" Total Money Makeover” Written by Dave Ramsey. After educating myself I realized I needed to Live on a budget to be able to rid myself from debt. And to once again be free to enjoy a less stressful life.




Ok, Now let's talk about budgeting.

Here are few steps to getting started towards becoming debt free.

1. Take a brutally honest look at your financial practices by looking at your income to debt ratio.

2. Set up a monthly budget starting with only necessities such as Mortgage / rent, food, utilities, clothing. transportation ect.

3. Take a look at your other monthly expenses such as credit cards. entertainment expenses, health cub memberships, cable, cell phone contracts and other expenditures such as eating out at fast food spots or restaurant's, daily morning latte's and any other activities that can increase your spending and start getting rid of those expenses right away. break out the calculator and start adding up all the expenses that are not absolutely necessary and take that amount and get a good look at it. You will be surprised at how much money you are spending on these things

4. .Now add to the budget only the spending that is absolutely necessary. Look at your credit card bills and start paying them off by focusing on one at a time and make only the minimum payments on the others. This will get you off to a good start on debt reduction

5. Try couponing when grocery shopping and look for discounts when ever you are purchasing other items. No more payment plans, pay cash. Do not add more bills to the stack..




Setting up a personal budget is pretty easy. the hard part is sticking to it. Just remember you should never spend more then you bring in. You might have to find a way to bring in more money to do this. Maybe a second job or possibly de4veloping some streams of passive income will be helpful.

Many folks, myself included, have successfully used Dave Ramsey's "Snowball Debt Reduction" plan to help them figure out a budget and payment plan to bring them to the point of freedom from debt. Peace of mind that comes with living debt free is not unreachable. In fact it is closer then you think when you know how to change your spending habits.







Financial freedom is interpreted in many different ways. For some it may mean opulent wealth, For others it simply means not drowning in debt. I know that the second interpretation is the most common one. But with the economy in such a precarious state how can we keep from drowning in what seems to be a never ending sea of bills and interest payments? Well, I have one word for you: Budget.

Before we get started I will first say that I am not a certified accountant or a bookkeeper so I had to educate myself on financial matters. The way I went about this was to read the information available by those who I consider are the experts in personal finance.

Some of the books I've read and studied are as follows:

"9 steps to financial Freedom” and “Road to Wealth” Both written by Suzy Orman.

“Rich Dad Poor Dad”, “Increase your Financial IQ” and “Cash Flow Quadrant” Written by Robert Kiyosaki.

" Total Money Makeover” Written by Dave Ramsey. After educating myself I realized I needed to Live on a budget to be able to rid myself from debt. And to once again be free to enjoy a less stressful life.




Ok, Now let's talk about budgeting.

Here are few steps to getting started towards becoming debt free.

1. Take a brutally honest look at your financial practices by looking at your income to debt ratio.

2. Set up a monthly budget starting with only necessities such as Mortgage / rent, food, utilities, clothing. transportation ect.

3. Take a look at your other monthly expenses such as credit cards. entertainment expenses, health cub memberships, cable, cell phone contracts and other expenditures such as eating out at fast food spots or restaurant's, daily morning latte's and any other activities that can increase your spending and start getting rid of those expenses right away. break out the calculator and start adding up all the expenses that are not absolutely necessary and take that amount and get a good look at it. You will be surprised at how much money you are spending on these things

4. .Now add to the budget only the spending that is absolutely necessary. Look at your credit card bills and start paying them off by focusing on one at a time and make only the minimum payments on the others. This will get you off to a good start on debt reduction

5. Try couponing when grocery shopping and look for discounts when ever you are purchasing other items. No more payment plans, pay cash. Do not add more bills to the stack..




Setting up a personal budget is pretty easy. the hard part is sticking to it. Just remember you should never spend more then you bring in. You might have to find a way to bring in more money to do this. Maybe a second job or possibly de4veloping some streams of passive income will be helpful.

Many folks, myself included, have successfully used Dave Ramsey's "Snowball Debt Reduction" plan to help them figure out a budget and payment plan to bring them to the point of freedom from debt. Peace of mind that comes with living debt free is not unreachable. In fact it is closer then you think when you know how to change your spending habits

Tags

Budget, Debt, Debt Reduction, Finance, Get Out Of Debt

Meet the author

author avatar jjmyles
Love to write and am interested in a variety of subjects. l Love my family and friends and my dog Peewee.

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Comments

author avatar Carol Roach
4th Mar 2015 (#)

Very good points, my boyfriend is an accountant

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