What do you do if your putting out more than you're bringing in?

Question

I don't get it...how can you spend more than you make? And by doing this, how do you ever get out of debt?

I do work a hard, full-time job, by the way, and am currently in college full-time also. SO, to the person(s) who have assumed I don't anything about $$$, I do I am just asking a questions

Answer 1

I did this, and it took me a long time to recover.
I was earning just enough to pay my bills each month, and then I had car trouble and used the credit cards I had to pay for repairs. Then the holidays came around and I charged gifts for everyone. By the new year, I was already paying the minimum balance on my cards each month, so I started thinking what difference would it make if I owed a little more...so I bought some new clothes and an MP3 player to cheer myself up. Pretty soon I was over my head in debt. The very best way to fix this is to get a second job and put all of the money you bring home from this job on your bills. If you default on your cards they keep adding fees and penalties. If you declare bankruptcy, it costs a bunch of money and it stays on your credit record for 7 long years. If you are not too far in debt, you can pay off your debts in a lot less then 7 years. I kept my second job (mostly on weekends) for a year and a half. Now my credit is great.

Answer 2

Two words, credit cards.

They are the bane of a society trained for instant gratification. Credit card companies ultimate goal is to enslave you. Make so you are paying them for the rest of your life. Now with new bankruptcy laws on the books, now more than ever has the credit industry become more dangerous than ever.

Predatory lending practices, insane interest rates and impatient consumers is a recipe for disaster.

Answer 3

credit card loan shark bait you in. that why you should stay away from those card. It is really hard to break the cycle when you are in. So to break the cycle, spending less than you make, control spending the fansy cars, cloth,latte, expensive thing, that's just material stuff that kill you. set aside 1000-2000 cash for emergency in case your car broke down,house need to be fixm paying down the debt. after paying the debt, set aside 10-15% of your pay to Roth IRA,401k. That's good place to start. I am lucky enough to learn my mistake early and correct

Yes you could learn invest by yourself. it is your money, you should know how to do with it. for starter check this site out.

http://www.pathtoinvesting.org/index_fla...
http://www.stockcharts.com
http://www.streettalklive.com>... university. a lot amount of information. It will serve you well
I accumulate in good amount in 401k at the young age.I could share with you. when consider invest in stock market. you should consider basic 3 things:

fundamental analysis==(economic data,finincial health, management, business model, competetion)>>what to buy

technical analysis==(chart+indicator)>> when to buy

Sentiment/schycho analysis==>>mood of investor, Contrarian point of view.
Market cycle===>> check out book Trader Almanac by jeff hirsch will give you inside stuff
When you combine 3 thing, It is one of the powerful knowledge goinh with you for the rest of your live

At the age of 32. my 401k is amassed 73,000.00 and 30000.00 in taxble account. by follow simple rule

Answer 4

The simple answer is- you can't.

If you're living beyond your means, you can't get out of debt until you change your spending habits to stop that. Unless, of course, you file bankruptcy, which I wouldn't recommend for anyone.

Answer 5

Get a second job or spend less. Prepare food where you live instead of buying prepared food.

Answer 6

That's what poverty is all about. What if you don't bring in enough to live decently? Why do people reproduce when they don't bring in enough? Lots of questions. What are the answers?

Answer 7

ever heard of credit cards? that's how. stop using them to get out of debt.

Answer 8

that is one of the biggest problems people have today. they can not seem to get ahead. You need to e-mail me to listen to what the company I work for has to offer. bowenquarterhorsesandpaints@ya

Answer 9

You must not work friend or else you would know the answer to the question.(Or maybe you're just trying to garner pts> hmmmmm!

Answer 10

well to answer your first question, it's easy it's called credit cards and charging more that you make each week. to answer your second question, that easy, cut them up!