How to Stay Out of Debt

It is unfortunate, but we live in a society that thrives on the creation of debt. The way our financial system is set up, you are taught that the only way to have anything is to go into debt, when in reality that simply isn't true. While it is true that you want to have enough on your credit report that it's obvious you pay your bills on time, you do not have to go into debt to prove this, or to have nice things.

1. Don't purchase items using a credit card that you can pay for in cash. This sounds simple, but you would be amazed how many people get into trouble by using their credit card for every latte or hamburger that they consume during the week. For those sorts of things it is always better to pay cash or use your debit card which is equivalent. If you can't afford to purchase these things without a credit card, then you shouldn't be purchasing them at all, and instead making your own coffee and brown bagging your lunch.

2. Save your change for a rainy day. I keep two boxes for my change, one is for pennies and the other is for dimes, nickels and quarters, I even occasionally throw my one dollar bills or a five in there. This is a great way to save for those little special things we all like to have such as paperback books, or the occasional latte for example. It can also be nice if you want to do it to save for the holidays. Just make sure you wrap your own coins because those coin counter machines we are seeing everywhere charge you a fee!