How to Stay Out of Debt By Living Cash Only

It is not easy to get out of debt and stay out of debt. Once you experience living debt free, you will never want to deal with credit card debt again. It can be done by living cash only. If you find yourself coming up short every pay day, cash only may be the best solution for you. Millions of dollars a year are spent on interest alone from credit debts. By living cash only, you keep that money in your own pocket and learn the value of a dollar. Not to mention learning some great skills for saving money.

Instructions

1. Each payday sit down and write out the bills you intend to pay in this pay period. It is best if you have a budget and prioritize your expenses according to your budget. This way, you know exactly where your money is going and how you are spending it.

2. After the bills have been paid, figure out the amount of money you have available for your other expenses: groceries, gas, eating out, entertainment, tobacco products, and anything you will likely spend money on.

3. The amount of money you have set aside for these other expenses should be taken out in cash. It is best to keep it separated: a certain amount for groceries, a certain amount for gas, etc...

4. When you get groceries, fuel, eat out, or go to a movie use the cash money specifically set aside for that purpose. If you don't have enough, you either have to resolve to do without an item or two or see if you can increase your budget in that area. Most importantly though, only use the money you have set aside. Do not pull money from savings or other sources to go out to dinner or go to a movie.

5. Consider any money left over as nonexistent. It is not money you have. Put it in savings and forget about it. Each pay day, take any cash you have left over and drop it into a savings account and walk away from it.

6. When making more expensive purchases, resist the urge to use credit or apply for new credit. Be committed to a cash only lifestyle. Really think about how much you need it. If you decide it is really important for your life, save up for it, so you can pay for it in cash rather than resorting to credit purchases.

Tips & Warnings

• Try to budget enough so that you don't short change yourself before the next pay day. Over budgeting is fine, because anything left over will go in to savings anyway.

• Think carefully before making purchases. Ask yourself if you really need it, do you have enough left over cash to last until the next pay day, can you get a better deal somewhere else?

Resources

• How to Get Out of Debt, Stay Out of Debt and Live Prosperously
• How to Fix Being Broke: Get out of debt, Stay out of debt and Save a lot more money