Even if you ask thousands debt management consultants, they will all emphasize one thing: Spend your income wisely; don’t live beyond your means. This is and has always been the guiding principle no only in debt management but in the entirety of the budgeting; be it for governments, for corporations, or for people. On a personal level, there are several simple, subtle and effective ways on how to improve your debt management plan by simply using the details of the things that you spend on.
* Buy out of necessity, not out of vanity. Not surprisingly, the most common reason why people drown on debts is also the most irrational of all: vanity. This applies equally for both men and women. People buy things that they don’t need just out of insecurity, competition, and pretentiousness. What’s the point of having tons designer’s clothes in exchange of losing your home?
* Compare not just the price but also the net weight of the consumables that you are buying. You may think that you are saving money by choosing to buy a $1 personal hygiene set over another one that costs $2. However, if you take a look at the net weight of each items on the set, you might notice those of the former are just one-third of the net weight of the later. So before buying consumables, be sure to carefully take note of the net weight and the price.
* When buying things for your home, buy the ones whose values appreciate over time. Your home is not only your shelter; it can also be the basis for limit of how much you can owe and it is also the collateral in case that you need to have a loan. Make your decorations and furniture at home an investment by buying the ones whose values increase as time goes by like a painting or a piano. Ask an appraiser for advice to know which decorations do appreciate over time.
* Know the products that you regularly consume and buy them wholesale. When you compare the wholesale and retail price of a certain product, you will see that the cost of each is less when bought in wholesale than in retail. Products like eggs and sports drinks should be bought in wholesale. However, don’t buy the products that have early expiration dates like milk because they are more likely to expire before you have consumed them all.
Managing your debt is not only about paying your debts on time and looking for extra sources of income. It is also important to reduce the expenses that you incur on you shopping cart, so be sure to follow these tips if you are really determined to hasten your way to a debt-free life.