Just came through a great article today and I would like to share it here. Some of the point that appears in the articles really match my thought on money management. So let see what it is:

“The first step for those who have overindulged on their credit cards is to stop charging immediately and move to paying cash, Walbert said.”

I had discussed this point before in my post Debt Control – Debt Fighting Tips, Part 3 : Live on Cash Basis. By living on a cash basic, you will stop making new debts.

“Say you charged $700 at Christmas or Hanukkah on a card that carries a 13 percent interest rate and requires a minimum payment of $28 a month. Pay just the minimum every month, and it will take you more than five years to pay off the debt and will have cost you more than $210 in interest. If you double your monthly payment to $56, the debt will be gone in 14 months, and the interest will be just $56.30.””

Hmm, what can I say, as you can read from the paragraph, by paying more monthly payment on your debts, you can pay down the debts faster and save you a lot of interest charges. I think we must prepare our monthly budget and increase our monthly payment so that we can have this 2 benefits in long run.

“I’ve seen people walk through our door with a plastic grocery bag filled with unopened statements,” she said. “You have to open them and face up to it.”

This really a truth. I saw this before. People are so depressed until they don’t dare and reject to open up their statements and look at the figure that they owed. However, we must stand up and face it and only this we can solve our problems.

“You need to know where your money is going,” Cunningham said. “Most people know how much they’re paying in rent or for their car. But they don’t know the incidental expenses, like how much they spend eating out, and that’s where they need to cut back.”

I think by having a budget, you will easily put your hand on knowing where your money is going. Just read my post Formula To Be Financial Free Part 2 : Budget.

Source : http://pittsburghlive.com/x/tribune-review/s_417280.html

Related posts:

1. Debt Control - Debt Fighting Tips, Part 6 : Keep Thinking Long Term This is Part 6 for the series post Debt Control...
2. 6 Tips to fight your debts to achieve Financial Freedom This is an articles that I joined from the following...
3. Debt Control - Common Tips to knock out credit card debt Generally, credit card is the worst kind of debt because...
4. Debt Control - Debt Fighting Tips, Part 4 : Get Handle on Your Situation This is Part 4 for the series post Debt Control...
5. Debt Control - Debt Fighting Tips, Part 5 : Prepare a budget This is Part 5 for the series post Debt Control...
6. Debt Control - Debt Fighting Tips, Part 3 : Live on Cash Basis This is Part 3 for the series post Debt Control...