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5 Habit Changes That Can Help You Get Out of Debt

By: kjmena

It is never to late to start making changes in your personal finances that will lead to success. A few small changes in your current habits can lead to rewarding results, like getting out of debt and having a savings fund.

Instead of repeating some of your previous financial problems , attempt to make changes and make the best of your personal finances this year.

1. Not planning your finances.

If last year you didn’t use a budget or you were flexible with your financial planning, take this year to use a detailed financial plan. Planning your finances makes it easier to designate funds toward your needs and goals.

A financial plan will also give you an opportunity to plan for unexpected financial situations. Knowing how and where your money is going will give you a greater sense of financial security.

Make a budget and learn to stick to it. The more detailed and comprehensive of a plan you make, the more financial sound you can become. A monthly budget is one of the more common and popular forms of planning. In a monthly budget you want to include your living expenses, food expenses and savings.

2. Not acting when you noticed you were struggling financially.

One of the keys to improving your finances this year, is acting when you see a problem. Many aspects of personal financing can get overwhelming and when that happens it is good to act. If you are one of the many people struggling with debt, loans or budgeting start making steps to make changes.

These steps can include small changes in your financial lifestyle or habits, that can eventually go a long way. For instance, limiting your budget or cutting down on certain expenses. The most important thing is to act and make a change when you begin to struggle or are struggling to meet your financial obligations. One simple change can change the course of your finances for the better.


3. Not starting a savings fund.

Saving is one of the more critical points of your finances that can lead to financial problems. Saving money is a form of protection against financial instability and ruin.

A savings plan should include a fund for emergencies and one for retirement. An emergency fund will be your short-term savings fund, while your retirement fund will be your long-term savings plan. An emergency fund is for temporary but immediate financial help, like loss of employment, unexpected medical expense etc. A retirement fund is to be used once you finally retire from work.

A good way to start each savings fund is to open up individual accounts for each. Keeping them separate will help to prevent overlap spending and will be easier to track.


4. Not tracking your spending habits on a regular basis.

In order to realize the errors of your ways, you will need to recognize the problems first. One way to improve your finances is by tracking your spending. You can track you spending by writing down each expenditure in detail down to the cent, or balancing your checking account on a weekly basis.

Having a consistent method of checking your spending habits, daily, weekly or monthly, will be the best way to become aware of how you spend your funds. Keeping a spreadsheet is a good method or some form of record keeping.

Evaluate your spending and check for areas that can be improved. This is an assessment to get you to start making wiser spending choices and using your money sensibly.


 5. Not seeking professional help when your financial situation got overwhelming.

Many people who are having a tough time with their personal finances, try to handle the situation on their own. But that can be a detrimental mistake. Sometimes seeking professional help for a financial issue outside of your knowledge can be extremely beneficial.

An expert will be able to focus in on your financial goals and give you tools to slowly start improving your life. A professional will be able to organize your finances so that you can start managing them much easier.

Don’t be ashamed of getting professional help, it is there as a resource to having a successful financial future.


In this new year you can achieve anything and one good place to start is with your finances. Instead of repeating the same financial pattern that you’ve followed in the past, take this time to break out of your bad habits and improve your finances.

  • Take the first step!