Posted on February 13, 2008 at 11:58 pm Staying out of debt is a matter of simple math.  You can't stay out of debt unless you spend less than you make.  So, you have two options to get out (or just stay out) of debt..  Before looking at the options, you have to do a simple budget that outlines the lifestyle you want.  If the lifestyle you want costs $5,000 a month, then you need to make more than $5,000 a month.  If you don't make that much, than you have to make the choice - either make more money, or settle on a less expensive lifestyle.  If you have to have the more expensive lifestyle, than you need to supplement your income, and the internet can be a great part-time way to do it.  Start a blog, sign up with an affiliate program, or even find something you could sell.  There is a great list on this site of 101 ways to make money online.

Posted on February 14, 2008 at 2:33 pm That is true for the most part, but just as often the source of debt is an unexpected event happening such as a medical emergency, divorce, car wreck, appliances breaking down, etc.  It's not always caused by living beyond your means.  It's important to budget, buy insurance, have savings and all these other factors that can help reduce your risk of going into debt, but even still sometimes life happens and it's outside of your control.

Posted on February 19, 2008 at 12:34 pm Also not everyone can predict what they'll make in a given week, let alone in a month. Many self-employed people do daily or contractual work that's constantly changing. This can make it tough to project a budget.

Posted on April 4, 2008 at 11:54 pm I'm guessing simple math is not everyone's strong suit. Too many people aren't taught to save and even more are never taught about the basic logic of knowing how to make a budget that will enable you to live the lifestyle you want and still put money aside for emergencies. I think this should be taught in schools - along with lessons like 'You really DON'T have to keep up with the Jones's because their debts will cripple you!'

Posted on April 5, 2008 at 3:47 am It's really important for an individual to apply Math all the time especially if your in business. Math is applicable in every move you take. Based on my own experience, I worked in purchasing department. I realized that if your smart and apply Math in all accounts. Profit is doing well. 

Posted on September 1, 2008 at 5:45 am I think is a matter of living a simpler life. The basic of it is starting to acquire daily habits that can set us free from debt. And is not impossible, it just needs certain sacrifices that not everybody is willing to do. Because now everything is so easy to acquire, specially using credit. I wrote a post in my blog talking about this, and maybe how to start applying it on daily life (waiting for more suggestions!): Living a simpler life

Posted on September 19, 2008 at 11:44 am I agree with this for the most part.  Yes emergencies come up and cause us to spend more than we make in any given month.  That is why it's important to have an "emergency fund".  Insurance is a plus too. I think in todays' world- we are used to buying what we want- when we want.... Who cares if we have the Money- we have credit cards.  This is where most debt comes from. Don't spend more than you make.  It's key!

Posted on September 30, 2008 at 4:17 am Its very important that we find an alternative soure of income, if we are not good at budgetting and saving.They can come in handy during financially tight times.

Posted on March 24, 2009 at 1:58 pm Jeremy, thanks for reminding us of this important point. As you say, debt is not always willingly acquired. Some people use their credit cards during job loss, just to feed their family.  It's a back up safety net so that they can remain living indoors and simply not starve. Thanks for the reminder. Sometimes, knowing what has motivated credit spending or loans can help a person get a handle on their debt.

Posted on March 31, 2009 at 9:38 am Yep, debt is not always caused by wasting your money over unnecessary things, though it seems to be the most common reason.