While there are some things that are worth going into a bit of debt for, like a home or a car, so many people find themselves in crushing debt all for things that should be considered non-essential. Granted, sometimes emergencies come up or extenuating circumstances prevail, but if you create smart financial habits, you can avoid a lot of the debt that other people fall victim to. So to help ensure that you’re able to maintain control over your own finances, here are three money habits that can keep you out of extreme debt.
Pay Off Credit Cards Each Month
With the right restraint, having credit cards can really be no issue for your financial health. It’s only when you run up your charges and have to deal with a mountain of debt because of it that purchasing things on credit becomes a problem. To avoid this in your life, Mikey Rox, a contributor to WiseBread.com, advises that you only buy things with your credit card that you’re going to be able to pay off completely at the end of the month. If you never carry a balance on your credit card, you’ll never have to worry about going into debt or having to pay outrageous interest rates on your purchases. While living within your means can at times be challenging, it’s always going to be worth it in the end.
Make Your Savings Automatic
In order to ensure that you’re always able to make a payment on whatever type of debt you might have at the moment, Geoff Williams, a contributor to U.S. News and World Report, recommends that you build up your own bank accounts by making savings automatic. If you’re able to have a big chunk of change in a savings account that gets automatically added to each month, either from your income or from automatic transfers from another account, you’ll always have money in reserves to pay your bills and cover any unexpected costs that you might have had to put on a credit card.
Give Yourself Time Before Making An Abnormal Purchasing Decision
People usually get deep into debt, especially credit card debt, because they buy things that they shouldn’t be purchasing. Sadly, it can be very hard to not buy something if you see it and really want it. To help make the decision to forgo a purchase a little easier on you, Cheryl Lock, a contributor to LearnVest and Forbes.com, suggests that you give yourself about 15 minutes of time to think about a purchase before you buy something that you didn’t originally intend to purchase at this time. By taking these few minutes, you might realize that you don’t actually need to make this purchase.
To help you create smart financial habits, consider implementing some of the tips mentioned above to keep yourself out of debt.