If you are currently struggling with debt problems, then it is very important that you start saving money and stop living the same luxurious lifestyle that you may be used to. Debt problems are highly serious and paying these back need to become the priority – certainly the priority over inflating your DVD collection or that 3D TV. A change in thinking may be necessary then to change the way you look at and value your money and to change the way you gather it, and if you are smart then you can still live a great lifestyle within your new means. By simply changing your habits and your way of thinking it is possible to think yourself out of debt – and even to think yourself rich.
The first thing to change about your thinking when faced with debt problems is to try and become less materialistic. Of course this is easier said than done – we all know we should be less materialistic we just don’t necessarily succeed in changing. If you struggle to let go of that impulse to buy however then try to think of it this way – a few high quality objects will look and feel infinitely better than lots of dross. For instance if you have far too many clothes then this might contribute to your debt problems, but at the same time it will also mean that you have allowed slips in quality which will mean that you often end up wearing clothes that you don’t feel quite as good in. The better way to dress stylishly is to buy just a few very nice outfits that you can wear regularly. The same is true with DVDs – don’t impress people with your huge stack of DVDs, but rather impress them by selecting just ten of your very favorite films and this will help with debt problems while making more of a visual statement (and being easier to store).
You can also help debt problems by embracing digital. Gone are the days when you need to ‘buy’ everything, and while it’s not always entirely legal you can get most media you want online for free. That means selling your CDs at a car-boot sale and then using Spotify and YouTube to listen to your favorite music for free.
Likewise prioritize the things you really want and make the necessary sacrifices to afford these. If you must have a 3D TV despite your debt problems then simply write out a budget that allows you to afford it without taking money from your savings. That could mean taking money out of your food budget, opting to stay in for a few weeks (and actually doing so) or even choosing not to go on holiday. Pick a few big expenditures and cut back to afford them.
You also need to learn to think ahead and to get enjoyment from saving money. Change your goals from ‘go out drinking twice a week’ to ‘have a celebration when I pay off the last of my debts’, or to ‘be able to comfortably afford a new sports car’. By keeping your eye on the prize you really want, you should be more able to make sacrifices up front now.
And finally learn to value your money and to enjoy seeing your bank account go up. For now don’t think of your watch as the sign of your wealth, but rather a healthy bank account and the attitude that goes with that. Once you become addicted to seeing the number on the screen go up (check often and add to it however you can) you will become more loathe to cash out for luxuries.