How do I avoid debt?

Answer 1

Don't borrow Money!!!!

Answer 2

You need to understand interest. Interest is the rent you pay to have and use someones money.

Some debt is good - a loan on a house, for example, as a house goes up in value and the interest paid has tax benefits. A loan to go to school is a good investment.

All other interest is bad and demonstrates you have not planned well..

You should start by paying yourself - about 20% of your take home pay. Some should go into your employment 401K and some for a rainy day.

You should have 6 months of living expenses in the bank - a checking or savings account.

The rest of your money is yours and you need to adjust your lifestyle and spending habits based on that balance.

Do not charge anything that you do not have the money in your checking to pay.

If you do not have a dollar to buy something today, do you think you will have a $1.20 next month?

Sonny

Answer 3

Most people apply for credit, make a purchase, then repay the loan with interest. Instead, save the amount you want to spend over time (for instance, a certain amount every month). This simulates a monthly payment. The advantage is you will incur no interest and will create proper spending habits should you eventually apply for credit. Also, when you have saved for the item, you may learn it wasn't worth the money and spare you a bad purchase.

Answer 4

Did you know that one of the biggest financial mistakes most people make is dependence? Dependence on others allows “outside” factors in people’s lives to control them. Their jobs, the government and financial burdens like debt are all factors that people let control their lives. And instead of feeling good about their finances, most people feel ill.
The secret to financial security is learning to control the things you can control.


You can’t control taxes, but you can control ways to reduce your taxes. You can’t control Social Security, but you can build funds for retirement. You can’t control your employer, but you can develop alternate sources of income to eliminate your dependence.


When you let others control your security, you’re inviting insecurity.


Where Do I Begin?
Most people have too much month left at the end of the money!


At first glance, you may think you don’t have any “extra money” to help your financial situation. Many families feel they do well just to pay the bills and keep their “heads above water.” You’re probably thinking the same thing right now. Even families with above-average incomes are feeling the financial pinch these days.


But don’t give up! If you’re serious about building financial security for you and your family, there ARE ways to arrange your present income (what you actually are earning NOW) to free up funds for investment.

Answer 5

You need to shake loose the me now attitude. Try and live well beneath your means and don't try to live a lifestyle you can't afford.

Since you would be living beneath your means, take the extra cash and save it. Have your employer take it out and deposit into a savings account automatically before you ever see it.

Answer 6

Save, Save, Save and don't spend, spend, spend!!!!

Answer 7

Pay cash

Answer 8

spend less than you make, invest the diffrence.

Answer 9

Don't spend more than you make.

Answer 10

Don't spend more money than you have.