This is the question one asks at the 11th hour of the financial collapse.
HOW DID WE GET SO FAR IN DEBT ?
First, the obvious answer is that it is easier to spend it than make it. You can go in debt with the “hope” that you will be able to manage it and even pay it off each month. This is where things go bad – counting on something that is not there, and in this case, it’s money that is not yet there.
HOW MUCH SHOULD YOU SPEND?
A person should spend based on what they have, not what they are “certain” they will have. How many times have you lost the expected money due to something that you hadn’t predicted? Salespeople can have that happen to them where they are absolutely certain that the sale is done and the money is all but in the bank. Then, there is suddenly a complete shift in the buyer and boom! the sale is gone.
Look how many people spend money on lotteries! And how many of those people actually win? Just a very tiny percent make it to the big bucks through lotteries.
FORMULA ABOUT MONEY
Spending less than you make is the simple formula. Making your savings part of the monthly expenses can guarantee a growing savings account.
If you’re in debt, get out of it. You can use the Roll Down method that I described earlier, or Debt Settlement. Getting rid of debt is an important direction to take when your debt is not making you money.
Steer away from the non-profit debt counselors as they are really collection companies for the banks and credit card companies.
Sensible economy will help eliminate the accumulation of debt and put you on the path to prosperity no matter what the country’s economy may bring.