At one time or another, almost everyone you know will be in debt. Some will be able to manage and overcome that debt quite easily actually but; like almost 80% of all Americans, the majority of people in debt will struggle with it every month...sometimes for years.
What causes people to go into debt? Basically just two things...
1. Credit Cards - It's so easy to use those cards until they become maxed out and the monthly payments become due. Then reality sets in and you realize you've screwed up. The interest rates can be as high as 30% or more and may take years for you to pay off. Once in credit card overload you're trapped!
2. Peer Pressure - John and Mary have a beautiful home. "Why don't we get one too?" A lot of times we buy something worth 1,000's even Hundreds of Thousands of Dollars just to fit in with all our friends or business associates. It might be a house or a new car. Maybe the latest fashions or some exotic vacation. Whatever it is, you went into debt just to keep up with other people. (More about this in a minute)
These are the two main reasons people go into debt.
Like most, you have no savings because all the monthly payments are going out instead of going into your savings account. Assuming you even have one.
You might want to save but, you're spending everything just to stay above water. So ask yourself this. Why are you so concerned what other people think?
Why work so hard day in and day out just to pay a bunch of credit card bills when most of the people you know only care that you're just like them!!!
Don't you realize that if you couldn't go out with them that they would not care? So what if your car is older or some of your clothes are out of style or your house is a bit run down and in a less desirable neighborhood?
Believe me, if they still wanted to hang out with you...they would. If not, then they weren't worth your time anyway! All you'll accomplish by trying to keep up with others is more stress and more debt.
My suggestion is to live within your means. With the exception of a home, only purchase what you can pay cash for and that includes a car. Forget trying to fit in with any bunch that spends, spends, spends. They won't remember you once you stop trying to impress them.
You'll also develop friendships with people that will appreciate you for who you are and not for what you might have.
Cut up those credit cards. Clip coupons or use digital coupons. Get yourself to a point where you're putting 20% into Savings every month.
A book you might want to read if you need help with debt and bills is: "How to Get Out of Debt, Stay Out of Debt, And Live prosperously" by Jerrold Mundis You can buy a used copy from Amazon for around $5 or $6 dollars.
Think about what your life would feel like if all you paid every month was maybe rent or a mortgage payment and utilities, food and gas?
What would that feel like? No credit card bills, no payments to big box store accounts no trying to impress superficial friends by spending money you should be saving.
A lot of your frustration and stress would dissolve. You and your family would be more secure. You and your Spouse would be happier. Most of your daily issues would evaporate!
And...isn't that the point. Being happy and having Gratitude for what we have makes all the difference.
I'm not saying to never strive for a bit more. More money is good but, you have to be able to afford an opportunity before you can make an opportunity pay off.
All the best,
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