While many people believe that the hard part is getting out of debt and clearing out all of those debit balances, in reality it can be just as  hard, if not harder, to stay out of debt!

The problem with finance today is the fact that it is very often so  easy to obtain (in normal markets) with junk mail offering you loans and  credit cards dropping through your mailbox on a regular basis.  If they  catch you at a time when you might be thinking about that holiday you  can’t afford, or the car has just broken down, it can be very easy to be  tempted.  That said, we hereby list a number of simple tips which will  ensure that you have the best chance of remaining debt free :-

Prepare Yourself A Budget

The first thing you need to do with any review of your finances is to see what money is coming in and what money is going out.  Too many people are afraid of this simple task because very often they do not want to see their spending habits in black and white. 

You may get a shock and you may see that you are living beyond your means, but it is vital that you make the necessary adjustments as soon as possible to ensure you have a chance of remaining debt free.

Bin The Junk Mail

If you see a credit card offer or loan application dropping through your mailbox, do not even read it, just bin it straight away.  The bottom line is that if you needed a loan that desperately then you would go to the bank yourself.  The idea of more money to spend may seem good to you, but YOU will need to pay it back WITH interest.  There is no such thing as a “free lunch” in the finance industry!

Pay your Bills On Time

As much as is humanly possible it is vital that you pay your bills on time because not only will you very often receive a late payment charge on top of your bill, but the longer the money to pay the bill is in
 your possession the more chance of you spending it elsewhere.  Temptation can be at the root of all evil – if it is needed to pay a bill, get the money off as soon as possible. 

Many people find that automatic payments from their bank accounts are the easiest option, they arrive on time and you don’t physically “feel” the money leaving your account.

If You Can’t Afford It Don’t Buy It!

While this may be the simplest piece of advice you may ever receive, it is very often something which many people ignore.  So the next time you are looking at that design handbag for $500 or that new car for $50,000, just stop and think – “Can I really afford this?” “How long will it take me to pay back the money?”

The best money saving tips are the ones which are simple, the ones that you know you can use, the ones that actually save you money.

Pay Off Your Credit Card Bill Every Month

In a perfect world it would probably be best not to have a credit card, but they are so accessible and they can come in very useful in a number of situations.  However you need to practice restraint and only spend on the card what you can afford and ALWAYS pay off your full balance at the end of each month. 

The interest rate on some credit cards is enormous and it can prove very expensive if you do not pay off your balance each month.  If you miss one month’s full payment it can be easier to miss the next and the next......until you can actually find yourself in serious financial trouble in a very short space of time.

Give Yourself A Rainy Day Fund

No matter how well you organize your finances there will always be situations whereby you will need funds at short notice, whether this is for new clothes for work, to fix the car or some other unexpected event.  It can be very useful to put even just a few dollars away at the start of each month into a savings account which you do not have easy access to.  Set up a simple bank transfer each month and soon you wont even realise it has gone.

Then when you need money for a special occasion you will have at least some funds available to help you out.  The idea of a rainy day fund is often ridiculed by many, but it can be a life saver if you use it correctly.  It is NOT a fund to buy the latest DVD player or tickets to the Football, it is an emergency fund.

0% Finance Deals

There will be times when you have the money to buy an item such as a new TV, possibly a car, etc, but you may be offered a 0% finance deal on the product.  As long as you can be disciplined enough to actually put the money aside, into an interest bearing account which you cannot touch, you can actually make yourself some money.

By taking up the 0% finance option you are paying the same price in the future that you would today, but as you already have the money you are able to put it into an interest bearing account until required.  If it is a sizeable amount of money and savings rates are fairly high, you can actually make yourself quite a bit of money for doing “nothing”.

Conclusion

Which ever tips you decide to use, or if you already have any of your own, it can be very difficult to plan your finances too far ahead because of the unexpected.  The “rainy day” fund is an idea which many people will find of great benefit as it can literally be a life saver in times of need.

Finance, and financial restraint, is simple you just need to have the focus and will to live within your means and take up each and every money saving option which may apply to you.  While one money saving tip may not make much of a difference in the short term, if you put them altogether it can have a seriously positive impact upon your finances – and take some of the pressures of everyday life off you!