how to get out of debt, common sense style

Parents in Debt

1. Spend less than you earn.

2. Pay "yourself" (actually, your savings account) first. 10% is a good number.

3. Pay off the highest interest debt first. If these are your credit cards - and these usually are the highest interest burden (other than a loan shark or one of those pay day loans) - then these are debt burden #1.

thanks to my twitter buddy scott bradley for this link!

4. Get take-out instead of dining in and save on tips; better yet, cook fresh food and eat in.

5. Use a thing you buy until it breaks before you buy a new thing.

6. Buy a car to drive for 15 years, not to lease one every 3 years.

7. Pay off your mortgage first.

8. Give time and things to charity if you can't afford to cut a check. But still give. Your power to do good things in the world exists beyond your bank account.

9. Pay attention to the things in life that really matter, like loved ones and true friends.

10. Discard false friends who only like you when you can spend with them or on them.

11. Learn to say no to borrowers whom you know will never pay you back.

12. Every week, find a way to cut 5% off your spending.

13. Barter.

14. If it sounds too good to be true, it usually is.

15. Don't be afraid to ask for your money back if you believe that you have been scammed.

16. Sometimes it makes more sense to rent than to buy.

17. Learn to live with less stuff.

18. If you do dine out, be generous for good service, servers struggle too.

19. Make a household budget and stick to the budget.

20. Make financial goals every year and the actions that will help take you there.

21. Make financial planning a family affair, every family member has a stake.

22. Saving is different from skimping. Save on the "wants" (these are usually material things), but never skimp on the "needs" (health).

23. Think about the time value of money, especially if you work from home or freelance. How much are you really earning per hour blogging for dollars?

24. Unplug appliances you don't use and use plastic plugs in the outlet sockets.

25. Stop watching ads and commercials or better yet, cut back watching TV. You save electricity and the temptation of extra things you really don't need.

Add to this list? email me!