Lifestyle On A Dime And Pennies

If there ever was a time to get out of debt, the time is now. The United States credit rating was recently lowered and Belgium, Spain, Italy, and France recently placed a ban on short sales. With countries curtailing spending, raising debt ceilings, and appearing confused as to what should be done to prevent economies from collapse, we should follow their lead by setting priorities on spending, spending on what's most important, eliminating wants, and ultimately eliminating revolving lines of credit.

Whether or not economies are in turmoil, absent extenuating circumstances, a mortgage, or student loans, you should strive to be debt free. If you're planning on getting married, you should be debt free. If you're over 35, you should be debt free. Revolving debt in the form of credit cards and spontaneous spending account for most of our credit woes. Eliminate credit cards and experience a happier, healthier, stress free life.

Get Radical
Credit cards have an addictive quality. Once you swipe, you just want to swipe over and over again. You have to stop spending immediately. You have to stop walking past that store with the shiny new shoes; you have to stop eating out; and, you have to stop taking vacations. If need be, cut those cards up. If you have multiple cards, keep the two oldest and close the others.

Get acquainted with your debt
Gather all your bills, add the balances, and confront your debt. The figure might be shocking, but the reality check is worth it. Avoiding the total doesn't change the reality, so start adding. Knowing how much you owe makes it easier to set a timeline for debt elimination. If you haven't, watching Confessions of a Shopaholic would be appropriate at this point.'It will make you laugh while reinforcing your reality check.

Save towards your debt
I saved towards my debt and got very depressed. Why? If I didn't have to put this money towards my debt, I could have kept all of it. I saved a certain amount each month and paid the cards with the highest interest rate first. Some people apply for personal loans to eliminate their debt. This tactic makes no sense, if you have no plans to rid yourself of this burden. Your goal is to get to a point where you no longer owe anyone, instead of simply consolidating and shifting debt around.

Live below your means
Distinguish between wants and needs and get the basic necessities. Draft a budget, allocate money accordingly, and stick to the plan. If you can, get a second job, or get creative and turn that hobby into a money making venture.

Economies worldwide are too chaotic for spontaneous spending. Losing a job is stressful enough. If this should happen, at least you won't have to worry about dealing with huge sums of debt and debt collectors. While on your journey, forget about instant gratification and think long term.'Eventually, all this hard work and dedication will pay off, and you'll love yourself for making the sacrifice.

Photo Credit to Fructivore Investments

Editor-in-Chief's Note: Ebonie Jones is a freelance contributor to MNI Alive.com