Debt Free Destiny

People often get good at lying to themselves when it comes to money - sometimes TOO good. This is especially true when people mentally fib to themselves about how much money they really have and what they really can afford to buy. With an ultra-tight economy affected a large number of families across the nation, it is important to find some honesty and truth when it comes to your money and financial situation.

Unless there is zero dollars in your pocket or your bank account, you may think you actually have more money to spend than you do in reality. So here are some tips compiled to set you straight when making a money decision, whether large or small.

1. There are no funds for that if you carry balance(s) on your credit card(s). Before you make any new purchases, make a commitment to paying off your balances before buying new.

2. There are no funds for that if you consider your credit card as extra cash. Essentially, if you don’t have the cash to back up your credit card purchases, you don’t have the cash to spend.

3. There are no funds for that if you are planning to spend money from your emergency fund, your 401k, or another savings or investment account. The only exception is if you have saved up the cash specifically for this purpose and none of your other bills or obligations are suffering.

4. There are no funds for that if you can not balance your monthly budget and have money left over. Meeting your financial responsibilities should be your priority - a flat-screen television is not.

5. There are no funds for that if you plan to use a “don’t pay now - pay later” deal. If you can afford the item now, how can you be sure you will be able to make the payments when later comes?

6. There are no funds for that if you plan to use your bank overdraft protection plan or your credit card’s cash advance option. Both are very expensive methods for getting access to cash, one you will likely be paying back for many more years to come.

7. There are no funds for that if you just started a new job or if you are living in fear of losing the one you have.

Of course we all want to be able to buy and have nice things but if you end up paying the price financially for years to come, whatever “it” is won’t be nice for long. It will instead become a burden and regret, adding additional stress to your life. If you want to live a financially sound, debt free life, ask yourself if you can afford what it is you want and keep this checklist in your mind.