As someone who just managed that this year, a few pointers.
1. Budget.
I know it sucks, and I know it is a hassle, still, no way around it. Grab excel or numbers or openOffice and do it start of each month.
2. Split accounts
I have used this technique to great success.
- 1st account is the "INCOMING" account, This is where all incoming money goes to and all fixed costs (see 1. Budget) go away from.
- 2nd account is a "pocket money" account. Pocket money is transferred there. Nice about this: You can spend ALL of this and your bills and food are still paid.
- 3rd account is a savings account. Not much to explain here. Make sure to save a good amount.
3. Keep at it
4. Get a seperate wallet for "food and household". I usually get a laugh about this, as it was something our parents used to do. Still, I withdraw cash beginning of the month and pay my groceries from this. Works wonders.
5. Keep at it
6. Use a big chunk from your savings account to remove all remaining debt at once.
7. Enjoy freedom.
I know people will go on about "credit history", "credit rating", etc... However, I plan to nev er go there again.
#2 is something that I am already in the process of setting up. I am going to leave my main card at home, and then setup standing orders to transfer my pocket money into my new account every week. This seems like the most logical way to reign in unnecessary spending.
The other practice I want to get in the habit of is telling my self that I can only spend money if I have earned it from doing extra work, be it web design, cutting a hedge etc. That should motivate me to get out and about to earn extra on the side.
Its going to be very tough thats for sure, then again some of the happiest times of my life have been when ive been broke.
Great advice. David Ramsey has a bunch of material on getting out of debt and basic money management. It's amazing this isn't skill #1 we teach in school.
1. Budget. I know it sucks, and I know it is a hassle, still, no way around it. Grab excel or numbers or openOffice and do it start of each month.
2. Split accounts I have used this technique to great success. - 1st account is the "INCOMING" account, This is where all incoming money goes to and all fixed costs (see 1. Budget) go away from. - 2nd account is a "pocket money" account. Pocket money is transferred there. Nice about this: You can spend ALL of this and your bills and food are still paid. - 3rd account is a savings account. Not much to explain here. Make sure to save a good amount.
3. Keep at it
4. Get a seperate wallet for "food and household". I usually get a laugh about this, as it was something our parents used to do. Still, I withdraw cash beginning of the month and pay my groceries from this. Works wonders.
5. Keep at it
6. Use a big chunk from your savings account to remove all remaining debt at once.
7. Enjoy freedom.
I know people will go on about "credit history", "credit rating", etc... However, I plan to nev er go there again.
Best, ::captaink::