Yesterday I taught you how to get into debt. These are vital skills, people, vital skills. However, I am sure that we are all too familiar with the many and wonderful ways we can get into debt. Planning to avoid debt is a lot less fun in some ways. It involves fewer consumer habits and more frugal habits. The up side is that you get to spend a lot less time working to try and get what you want, much less time shopping, and a huge amount of time relaxing instead of worrying about your finances.
There’s the piecemeal buying. This is what tells me that I’m feeling flush with money: I can justify stopping by the store for a snack with my daughter. When I am not feeling flush, we bring snacks and visit the water fountain. Give yourself a monthly allowance for this sort of buying and let it stop there.
We all have times when we really, really want something. What I have found it that when I really want something, if it’s a true want it will stay with me. The same happens with true needs. I use a little list on the fridge and put everything on there. If I look at the list in a few weeks and don’t want the item any more, that’s just great. If I do want it and can ask for it as a gift at some point, I put it on a list on my computer. The same goes with my daughter’s wants. If I continue to want something, I will plan how I can save or make extra money to get it and look into ways to get that item cheap or free.
I avoid shopping. I shop online, which can be a money sink for some. However, I know that I am one who is distracted by pretty, shiny, things and so I try to avoid real life stores. Online shopping encourages me to be practical, look for what I want, get it, and o. You might feel differently. However, if you shop in a real store, go in there with a list, get what you need, and go.
As for the crises, we’re working to address those. We are building an emergency fund for minor crises so that they don’t send us into a debt spiral.
What are the ways that you use to avoid debt?