Defending Against Debt

It's not hard to understand the need for good money management these days. With gas over $5.00 in some states and the housing market crumbling around us, debt control is a must. In order to survive this recession and come out of the other end the better for it, we must learn to eliminate debt and create a cash reserve. Of course it's easier said then done (to use the worn cliche). It seems during this crisis that there is no way to make any headway on the mounting debt.

If you're like most people, you believe that you have done all you can to plug up the holes in your financial cup. So why is it that at the end of the month you have no money to spare, and your credit situation looks just as grim as it did the previous month.

I don't claim to have all the answers, but they're a couple discoveries I've made that have helped. They seem pretty obvious, and I'm sure everyone has thought of them at one time or another. So let me remind you that it's the execution that counts most.

1. Get rid of all unnecessary services.

I know this kind of sounds terrifying, but I think it's a good idea to take an honest look at our expenses. Do we really need the premium package on all of our services. I found that buy canceling a couple of unneeded or unused services on my telephone, internet and t.v. I could save around a $100.00 a month. It might even be beneficial to cancel things like cable t.v. before it's canceled for you.

2. Consider your transportation.

There is no way we can overlook the automobile when considering your finances. When I was in high school I could fill my 15 gallon tank up for under $15.00. Lately it has cost me over $50.00 for that same tank of gas. This not only causes me stress at the pump, but also on my bank account. This said, now might be the time to look at transportation alternative. Maybe it's time to trade in that nice fast car, for something more modest. You should consider getting a scooter or motorcycle if you live in a state with good weather and a short commute. Also consider public transportation. Bus passes can be cheap and so can all around commuter passes that utilize bus, metro and train.

3. Create a savings account with untouchable cash.

Go to your bank and set up a savings account. Then tear up all the checks, and cut up any cards associated with this account. Now every month place a preconceived amount of cash in this account. Make it the de facto bill paying account, and then place a little surplus in it for good measure.

4. Get rid of all the materialistic bones in your body.

If you really want to save money, and do it in style, you need to purge yourself of the American materialistic consumer inside you. This may prove to be more difficult then getting rid of your cable t.v. This need to buy the latest, and most fahionable of things has been a nurtured part of our nature since we were young.

I had a nasty run in with my greedy, needy self just the other day as I was looking for a new car. A big part of me wanted to buy more than I needed. Even though this would result in unwanted debt. As I crept closer and closer to an expensive purchase, I heard this little voice telling me to be more practical. The need to buy within my means finally came through with the help of that little voice. Luckily that voice hasn't been completely drowned out by all the commercials and advertisements that bombard me on a daily basis

To most people these suggestions may sound like the pipe dreams of an idealist. But to those who can still hear that little voice that calls out for financial sanity, I hope this helps motivate you to do more, and spend less.