Debt Views

Most debt management programs focus on how to grow your income. But growing your income doesn’t automatically mean you will get out of debt faster because as people’s income grows, they tend to increase their consumption. One of the biggest reasons why people are trapped by debt is not because of a low income, but because they buy things they don’t need but just feel like having it.

You can easily save money and get out of credit card debt by buying only what you need, even if your income doesn’t grow. A “Need” is an essential thing that you can’t be without, such as a shelter, nutritious food, warm winter clothes, transportation etc. A “Want” is a non-essential thing you would like to have, but if you don’t, you will still survive, such as a video game, plasma television etc.

You probably want a shiny luxury car, just like the one driven by your favorite celebrity. But let’s be honest; if you are serious about getting rid if debt, you should distinguish between what you need and what you want. What you need is a means of travel, like a simple car, and not expensive luxury car that you can’t afford. This doesn’t mean you have to completely give up luxury products. But when you are in debt, the last thing you need is wasting money on things you don’t need.

Have you ever asked yourself, “why do I always buy things I don’t need?” Here are three possible reasons:

1. You buy something just because it’s on sale

Buying things on sale doesn’t automatically mean you are saving money because for a saving to take place, the product that you bought on sale must be something that you would have bought at some point for full price. But this is rarely the case because most people, who buy things on sale, buy things they wouldn’t have bought for full price.

2. You buy things believing it will make you happy.

Most advertising campaigns associate products with happiness, so you end up buying excess things because you believe it will make you happy. But guess what? You can’t buy happiness. While buying things might give you some pleasure for a while, it will not make you a happy person. How many times have you seen an advertisement for a new product and thought, “I have to have it.” But what if you had never seen the advertisement? Would your life be any worse off? Probably not. Think about all the possessions you have. How many of them really made you happy beyond the first few days after receiving them? Instead of focusing on what you don’t have, try appreciating what you already have. Never say “I would be happy if I had such and such” because nothing new will come into your life until you appreciate what you already have.

3. You are keeping up with the Joneses

You buy things you don’t need just because your neighbors (the Joneses) bought them, so you are trying to impress them with high social spending. You feel that if you fall below a certain standard that the Joneses set, they will think less of you. This is called ‘Keeping up with the Joneses’. But guess what? In many cases, the Joneses are doing the exact same thing to keep up with you, and they are broke. Many of the people you are competing with, who are driving around in shiny SUV cars, are deeply in debt.

If you save only $6 a day (rather than wasting it on things you don’t need) you could save $2,190 a year. You could then use this money to payoff your debt. Therefore anytime you find yourself in a store, feeling compelled to buy, ask yourself one simple question: Do I really need it?

For more information on getting out of debt, read my newly released e-book Debt Free Formula, an e-book that helps people get out of debt and reduce financial stress. For more information, please visit http://debt-free-formula.com

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