How To Live Beneath Your Means (debt Free)

Sometimes making your money last until the end of the month seems like an impossible task

. Here are some tips to help you to get out of debt and live beneath your means, and not above them as most people seem to be doing these days.

Lots of people adopt the ostrich approach when it comes to dealing with their money and they would rather bury their heads in the sand and forget about their money woes than actually deal with them. For a lot of people, debt repayments can be as much as 48% - 65 % of their salaries, so if this is the case, how do we ever manage to save for the future?

Getting rid of your credit cards should be the number one priority in the pursuit of extra money at the end of the month. Most people have more than one card and then struggle to keep up with the repayments. Then there are also those essential vehicle and home loan repayments that also add to the debt woes, so where do you start first?

Try to combine all your debt into a home loan account and in this way you will save on your interest rates, as home loans usually have the lowest interest rates. Unfortunately if you are already blacklisted, you can forget about consolidation, as you will only be able to do this if you have an excellent credit record.

If you have more than one credit card, move all the debt into one account and cancel the rest. Concentrate on paying off all your debt as quickly as you can. If you find yourself in serious debt and you are falling behind on repayments, you will need professional help. Contact a debt counselor for advice on how to clear the debt and get your financial life back on track again.

Budgeting is absolutely essential, and in this way you will know exactly where all your money is going. Even if you are fortunate enough to spend less than you earn, a budget will still benefit you and you will be able to save even more money.

Start by looking at your household expenses. Try and buy in bulk where you can. It is amazing how much more you will spend just by popping into the shops each day for essentials. Try and only buy fruit and vegetables that are in season, as out of season food can be up to five times more expensive.

Your vehicle could also be costing you extra. Traveling out of rush hour can help you save more petrol. Having your tyre pressure checked regularly and making sure your car's wheel alignment is correct can also save you in long term fuel costs.

Do comparisons on your insurance and medical aid payments. It is always possible to reduce your costs in these areas by shopping around. Be careful not to skimp though, as everybody needs a good medical aid. Sometimes you can also reduce you vehicle insurance, especially if your car is no longer so new, or if you park your car inside of a garage instead of out on the street.

Following the simple advice above should go a long way to helping you to organise your debt and your financial affairs.

by: Michel Maling

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