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2004 by Mark Cairney,
First American Debt Consolidation and Loans
There is nothing financially wrong with carrying modest
levels of debt. Without do so, most of us would not
be able to own our own homes or
automobiles. However, accumulating too much debt can lead to significant problems. In
extreme (yet ever increasing) scenarios the corresponding results are damaged credit and/or personal
bankruptcies. The best way for individuals to avoid these consequences is
by living below their means. This entails earning more money than
is being spent on an ongoing basis. Unfortunately, for millions
of Americans this is simply not the case. However, don't despair
if you find yourself in this situation because there are three alternative ways
to begin living below your means and improving your financial
health.
-
Make More Money. The first option is to
increase your current level of income. Although on the surface
this might not seem like a viable alternative it is none the less
worthy of exploration. Often times individuals can maintain their
current job responsibilities but greatly increase their salaries
by changing companies. A failure to do so may limit an
individual's pay raises to a once a year cost of living increase.
If it is not possible to change jobs (perhaps another couple of
years is required to receive full pension benefits) then a side
job (for you or your stay at home spouse) may be worthy of
consideration. There are a great number of convenient part time
jobs
that can be performed out
of the home that will generate significant amounts
of extra income. Among these jobs are: secret shopping,
transcription work, and a wide variety of e-businesses.
- Spend Less Money. The second alternative
to living below your means is to spend less money. This may not be
as hard as you think. There are a wide variety of simple tasks
that can be performed to scale back on your monthly outflow of
money. Let's examine a couple of helpful ideas. The first has to
do with food. A great deal of disposable income is regularly spent
at restaurants and grocery stores. These figures can be
dramatically reduced by a) eating out for dinner less often,
buying and preparing food in bulk (and freezing the leftovers) and
brown bagging lunch. These actions can easily save hundreds of
dollars a month. The second action
has to do with transportation. Many families have two new
vehicles per household. This typically translates into fairly high levels of
monthly payments and insurance. By trading one of these
automobiles for a dependable used car, or by hanging on to one of the
vehicles for a couple of additional years; a person can achieve
significant savings. Click here for more practical information on living below your means.
- Combination. The third and final method
to begin living below your means is to increase your current
income while at the same time decreasing your spending. Although,
this is the most challenging of the three alternatives; the
savings may be well worth the effort.
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About the author:
Mark Cairney is a professional consultant with
First American Debt Consolidation and Loans, a debt consolidation
service specializing in financial education,
credit counseling, and debt management services
nationwide. |
