You have sleepless nights thinking how to get out of the debt hole. But no matter how hard you strive to get out of it, you keep digging the hole deeper. Here are the tips on how to manage your debts and eventually eliminate them from your life:
1. Learn to distinguish a need from a want.
Needs are things we cannot live without while wants are things we can live without. Having a good office attire is a need. We have to look decent and professional in front of our co-workers and clients. But buying signature clothes for use in the office is a want. You can wear a nice business suit bought from a department store instead of a luxury boutique.
2. Spend less than what you’ve earned.
Write down religiously all your daily expenses. At the end of the month, analyze your expenses. You will be surprised that you have lots of unnecessary expenses like weekly visit to the beauty parlor, magazine subscription, daily dose of cold gourmet coffee, and the list goes on and on. Cutback on all these expenses and you will be surprised that your expenses are below your income.