Whatever your reason may be for switching jobs, it is important to set a goal of remaining debt free. Many have the impression that staying out of debt is all about living a more boring and less spontaneous life. The truth remains that by following some simple financial tips you can enjoy life more by greatly diminishing the hardships that come with falling into debt while unemployed; here are five to get you started:
Write down all of your expenditures and collect receipts in order to begin organizing a budget plan. The key is to divide the spending into categories such as housing, food and leisure. Once you understand how your money is being spent, it is easier to define what is necessary and what is not. By exploring every possible way to reduce your spending before setting a budget, you can ensure that your savings are maximized.
Save, Don’t Spend
Saving is something that should not be limited to your new budget plan. Rather, it should be seen as a new method of purchasing the things you want. For example, rather than buying a television using a loan, save the money necessary to buy the television in full at a later date. Avoid major purchases you don’t need. Also, try not to apply for quick personal cash as those interest rates can be high. If you can already determine that you are capable of making a purchase with saved cash at a future date, exercise patience and wait. Better yet, you may decide the TV isn’t necessary, which just means even more money saved today.
Thinking about credit cards is a crucial step for anyone who wants to stay out of debt while on the job search. The first step is to make sure you find a card that best suits your needs. Ask yourself why you need a credit card and get one with specific benefits for those costs. By using a credit card on standard purchases that you know you can afford to pay off, you can guarantee yourself the rewards and benefits that come with having a card, without falling into debt.
Doing the Job Yourself
Take the time and initiative to learn and do the tasks you normally would hire help for. For example, remodeling a home or painting the garage are two things that just about anyone can research online and learn themselves. While learning a new skill, you can simultaneously save hundreds or even thousands on a service you were so ready to pay for. However, the strategy can also be taken in smaller steps. For example, washing the car yourself or biking to work rather than driving or taking the bus are two easy ways to save substantial money over time.
There is no one size fits all plan to staying out of debt, however there is one thing that can help everyone, patience. Exercise patience each day when shopping, when thinking carefully about budgets, and when forgoing pleasures now in order to save. Recognizing the long-term benefits of staying debt free should be all of the inspiration you need to stay patient. Staying debt free is as simple as changing old habits while adopting new ones that can be sustained for many months to come.