Economic Conversation

Getting out of debt is something that is very hard for Americans in the current economic crisis.  With job losses increasing and home values declining, it sure spells disaster for many households.  The one good thing about the current economic crisis is that it is going to help Americans realize what it is to actually have a budget.  One of the first things that most Americans need to realize is that to get out of debt you have to give up some things.

Over the last 40 years, Americans generally just buy what they want.  If they want to go out to lunch, they just go and charge it to the credit card.  If they want to get a new HD tv, they go buy an HD tv.  Well, that can no longer be the case for many households.  Instead of looking at what you want, look at what you need!  If you look at what you need, you will realize that you can save quite a bit of money.

The best bit of advice I ever got when it comes to getting out of debt is to write down every single time you spend money.  If you stop at the gas station on the way to work to get some chewing gum, write it down.  If you go get a drink with the guys or girls, write it down.  If you pay the water bill, write it down.  By the end of the day, you are likely to have a lot of stuff written down on the sheet of paper.  You will then realize some of the stuff you really didn’t need.  Did you need to buy that Mountain Dew for $1.29 or could you have just used the water fountain at work?  Did you really need to get a pack of chewing gum for $1.49 or could a pack of .30 Big Red done the job?

This are the types of questions you will answer when you write every expense down.  Make sure to check back in tomorrow as we go over more getting out of debt tips.