BUDGETING TIPS FROM ONE WHO HAS LEARNT THE HARD WAY

About seven years ago, due to life circumstances, I found myself unemployed, penniless and in debt. It was a frightening situation, however through part time work and eventually starting my own business, I have slowly managed to become self-supportive and have almost paid back the debt. The following are the tips that I learnt that have helped me to become solvent:

Paying off debts is the highest priority — pay them off as fast as possible

Pay more than the allocated payment every month to reduce the interest

Pay what you owe before you pay for what you want

Keep meticulous records of your spending habits

Have a savings account and deposit something in it every month, no matter how small

Put money away for your future into some sort of investment or retirement annuity

Find inexpensive forms of entertainment, eg. picnics, meals with friends, art galleries, etc.

Never open store accounts –pay cash as much as possible

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