To be fair there’s usually one, two or a handful of major events you can probably point to as the watershed moment which put you in the debt-riddled situation you perhaps find yourself in. However, for the most part the typical debt burden is built up gradually over time, aided by a selection of less-than-good money-management habits which are built into our lifestyles.
For example, one credit card which you likely manage to pay off quite easily becomes two and then two become three, and so on…
The car you’ve been paying off all of a sudden seems outdated because you’re nearly done paying it off and the bank says based on your salary you can afford to finance a bigger one (which consumes more fuel) and just costs a couple hundred dollars more per month to pay off…
I can mention about a hundred or more other such not-so-good money-management habits which develop as easily as making what we’re made to believe are just regular lifestyle choices, but what I really want to get to is how to address what is clearly a problem for the ages. For as long as credit has been something which exists as a concept, debt has largely been a problem.
Furthermore, how many books on getting out and staying out of debt have been published, sold and read a million times and more?
So in addition to what is a clearly-forming picture of a lifestyle re-evaluation being in order as a means through which to start tackling the mounting debt problem, in order to succeed at solving this age-old problem one simply needs to follow the money trail. It’s that simple, but that’s not all which is required.
Following the money trail is only half of the equation, but a very important half because what it does is it puts things into perspective. It’s an important step to take because it sets you up well so that going forward you at least know exactly where to look in order to stem the flow of debt-building habits.
Basically you need to take a period of at least three months and try to be as detailed about your spending-tracking exploits as possible. If you can track your spending to every last penny, all the better, but you need to pay special attention to the exact habits which contribute to the construction of your mounting debt.
What you’ll often find is that you’re really just one simple decision away from completely changing things around as part of the bigger picture, but this one decision should be made at multiple steps along the way. For example, if your HOA management commitments are costing you quite a bit in time and money, why not suggest that your Home Owners Association management be outsourced to one of the best Phoenix HOA management companies servicing your area?
This is just one of many steps you can take along your financial management path to completely turn things around as you uncover one-decision solutions that each add a couple hundred dollars to your savings instead of making for a cash-negative flow that only serves to add to your mounting debt.