8 Steps for Getting Out of Debt

8 Steps for Getting Out of Debt

8 Steps for Getting Out of Debt

The average American spends a great deal more than they make every year. This results in a financial pitfall later in life. If you find yourself digging deeper into the empty wallet, here are ten steps you can use as a crutch to help free yourself of the overwhelming financial burden of debt.

Create and follow a budget – Creating a monthly budget will help you track where your monthly income is going. You should add up how much your expenses will be for the month and then add up your monthly income. Once you have calculated how the money should be spent, you should have some money left over for emergencies.

Stop spending what you don’t have – When you spend what you don’t have your debt is climbing higher. If your monthly budget disables you from making a purchase, then the purchase should wait until the money is within your reach.

Learn to distinguish between wants and needs – In a world filled with mobile devices, televisions, video games, luxury cars and other costly trinkets, our perspective on wants and needs at times becomes distorted. A need is something that is essential to your survival. Although sometimes we think that we will not be able to function without that flat screen TV, waiting until the money is in the bank and paying cash for large purchases is a better option.

Spend less than you earn – After you have covered all of your monthly expenses there should be a little money left over. If not, adjust your monthly budget. You never know when an emergency may arise.

Track your spending – Many people who are in debt are unaware of where their money goes during the month. There are many inexpensive software options that are designed to help track your spending. At the very least, carry a notebook and write down every purchase you make. At the end of month, you will be able to see where your money is going.

Pay yourself – Set aside a portion of each paycheck to go towards savings. Building your savings will ensure that you do not fall into debt again. Pretend that your savings account does not exist, or that you are unable to access the money. This way, you aren’t tempted to spend it.

Use a credit card responsibly – Credit cards are convenient for record keeping and budgeting, but can be dangerous if used improperly. Only make purchases on your credit card that you are able to pay off in full at the end of the month.

Use a debit card – Debit cards draw directly from your bank account, so you will not be able to spend more than you have
Remember that the key to escaping debt is spending less than you earn.

 

We hope you found this article about “8 Steps for Getting Out of Debt” helpful.  If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or website www.GROCO.com.

To receive our free newsletter, contact us here.

Subscribe our YouTube Channel for more updates.

Alan Olsen, CPA

Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com.  GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.

Alan L. Olsen, CPA, Wikipedia Bio

 

 

GROCO.com is a proud sponsor of The American Dreams Show.

 

American-Dreams-Show-Accounting-firm-in-ca-cpa-tax-advisors-groco-alan-olsen

The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.

Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.

The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.

They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..

American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:

Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…

Untitled_Artwork copy 4

MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness.  It’s mission statement:

In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.

Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.

Posted in

Unlocking Success, One Idea at a Time: An Interview with Lynn Thomas CEO of Thomas Consulting Inc.

See Lynn Thomas’ Recent Interview with Alan Olsen: https://youtu.be/0VFOWFl3wqk Lynn Thomas has been helping clients unlock success, one idea at a time by executing tailored client presentations that deliver extraordinary client experiences. Her firm specializes in creating and implementing plans based on new tax laws and the ever-changing market research. Lynn connects with her clients…

Pushing the Boundaries of Science and Technology: Insight from Dr. Lee Hood

See Dr. Lee Hood’s recent interview with Alan Olsen: https://youtu.be/60DDZ0MJ8QE Dr. Lee M. Hood is best known for his development of technologies which have enabled the advancement of predictive, preventative medicine. Dr Hood’s journey began at a young age, when he was an assistant professor of molecular immunology at California Institute of Technology in 1973.…

Ali Nasser: Building A Successful E-commerce Business From The Ground Up

See Ali’s recent interview with Alan Olsen on Youtube: https://www.youtube.com/watch?v=MJyKKqTCaBM Ali Nasser is a serial entrepreneur who has been helping business owners for nearly twenty years. He understands the legacy dilemma and financial freedom that many business owners face when it comes to their life experience, which is why he has developed a powerful and…

The Master of Retention with Lynn Thomas, CEO of Thomas Consulting Inc

Transcript Alan Olsen Welcome to American Dreams. I’m here today with Lynn Thomas. Lynn, welcome to today’s show. Lynn Thomas Thank you for having me on. I’m delighted to be here. Alan Olsen So Lynn, for the listeners, you have a remarkable career. I think you started out with Arthur Andersen. Lynn Thomas Yes, I…