Discover Debt Freedom!

It is remarkable how many people across the nation fail to follow even the most basic financial rules.  Basic financial rules should be taught to children prior to them graduating from high school and having to manage their own finances, but a refresher course in basic financial responsibility is good for everyone.  By consistently following these 5 financial rules, you will be able to keep yourself from falling deeply into debt and will save a great deal of money over time.

Rule #1 – Pay Yourself First
Before paying bills or spending money on items that you have determined that you need, place a portion of your paycheck into a savings account.  This can even be accomplished before you have your paycheck in hand, as many businesses allow individuals to direct deposit a portion of the check into the savings account automatically.  Everyone should have some savings in the bank to handle unexpected financial situations and emergencies.

Rule #2 – Pay All Of Your Bills On Time
Paying your bills on time can save you more money than you can imagine.  Not only will paying your bills on time avoid the accumulation of late fees and other direct penalties, it will also avoid a decrease in your credit score, which could lead to higher interest rates and the denial of credit in the future.

Rule #3 – Spend Less Than You Earn
Even though this may seem like common sense, you would be amazing at the number of people that routinely spend more money than they make each month, depending on credit cards and payday loans to bridge the gap.  Any person that spends more money than they make will always find themselves in debt to creditors, often for higher amounts because of the interest levied against each purchase.

Rule #4 – Save For Purchases
If you truly would like to remain debt free, save up for the expensive purchases.  Most of these items do not have to be purchased right away and the purchase will seem all the more worthwhile because you patiently waited and sacrificed to save money to purchase the item.  Before banks made credit widely available, this was how nearly all purchases were made.

Rule #5 – Resist Temptation
Many of the purchases that people make are unnecessary items that often are not used, worn, or shown as often as the person first thought it would be.  When faced with a good price on an item that catches your eye, take the time to stop and think whether or not you can afford to purchase the item and if the purchase is really necessary.  Chances are, you will find that it is better to leave the item on the shelf.

A great way to get a lower mortgage is to buy a less expensive home. Even in a seller’s market you can still get a good deal on a prefabricated home. There are hundreds of different styles and sizes of manufactured homes to choose from if you know where to look!