Financial Friday: Managing Debt

DISCLAIMER: I AM NOT A FINANCIAL COACH OR ADVISOR

Managing debt is the hardest thing for Americans to do, I mean look at how much we are in debt as a country. 76% of Americans live paycheck to paycheck. Why? Because we cannot manage our debt. I am one of those that can’t measure their debt, at least I used to be. Then I stumbled upon Shanaan Dawda and he changed my life. His book is to the right, From Paychecks to Power.

Let’s get started on how to manage that debt.

  1. This is the biggest expense of majority of Americans because we are too lazy to cook. If you meal prep for the week, it will save you a lot of money.
  2. Limit going out. I know we all like to have a good time, but that $50 tab at the bar or $60 bill at a restaurant, that money can go towards paying a debt.
  3. Take public transportation (if available). This will save on gas, from buying new tires if you get a flat, and from changing any oils. It will also be good for the environment.
  4. Pay more than what is owed. If you can, that is. It’s good to pay the amount owed, but it’s even better to pay more in order to pay it off faster and move on to the next debt.
  5. Pay debts on time. This will save you from late fees which is paying extra money that won’t go to your debt.
  6. Stop impulse buying. We are all guilty of this, buying things on a whim because we can. Just because you can, doesn’t mean that you should. I used to do this and ended up taking the stuff back because I didn’t need it or wasn’t going to use it.
  7. Carry cash. This was hard for me but effective. When I have cash, I am less inclined to spend money. With a card, you just swipe because you can keep track of your spending but with cash, can’t really do that.

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