Personal Budget Tips to Keep Yourself Debt-Free

Here are some personal finance and savings tips that can help you go a long way in dealing with debt – sometimes, before it even happens.

Instinct

Your subconscious can sometimes pick up risks better than your conscious mind. If you have any doubts about a purchase or a loan, give it at least a day and think it over. You never know, you may see more sides to the deal than if you had gone ahead the first time.

Signing in

Unless it’s necessary, don’t co-sign a loan with someone, particularly a close friend or loved one. If your co-signer suddenly flubs on a payment, it’s more difficult to solve money matters with people you love or good friends. Even if your child is the one who asks for help, what is important is to keep your own financial ship under control, not anyone else’s.

This also applies to the idea of leaving your money under the control of your father, mother, husband or wife. Never hand over financial control to someone else. That includes bank accounts, as well.

Keep a list

It doesn’t matter if it’s just a can of soda – the point is, the more accurate your expense tally is, the better you will be able to control your finances. This is perhaps the most important budget-cutting tip you can follow. By keeping a list, you also create in your mind a counter-list of expenses you can do better without. Once you make that a “real written list,” you can then “edit” your budget. Any savings should go to either paying off your debt or saving up for a rainy day. With retirement, health insurance and education costs for your children to look forward to, it’s best to be as prepared as you can be.

Sign up on the box at the right for more information on debt relief, consolidation and modification.