Budgeting This rule is simple. Create an effective budget and stick to it. Analyze your bills and determine what you really need and what you don't. Once you distinguish the difference between necessities and luxuries, cut down on the latter. A credit card will make you spend money you don't have. Unfortunately, the realization sets in too late. Instead of panicking after a credit crunch, start implementing credit debt solutions. There are critical areas, like shopping, education and housing, that can make you splurge and falter. Start living debt-free and soon you'll be able to impart the same wisdom onto others.