Debt Payoff Plan | Debt Pay Off Plan

Many people – especially people who find themselves in debt – have the philosophy that they will save what they don’t spend.

In other words they pay for essentials, they pay what extra bills they can, and then whatever is leftover, they save.

This is the wrong way to do it. Why? Because you’re always find things that you “have” to spend money on – things that aren’t truly emergencies. Instead, you need to spend what you don’t save.

How do you do this? You decide how much you are going to save every month, even if it is only $100 a month, and you set up an automatic withdrawal system so that money is taken from your checking account and put into a savings account – preferably one where it is difficult for you to withdraw it on a whim.

Consider this to be an additional bill that you are paying every month. Another way to look at this is that you are “paying yourself first”. Your future, your financial security, are of the utmost importance. More important than movie night with the family, more important than those new jeans or that new ipod or those caramel latte’s you buy at Starbucks every week.

If you rearrange your finances and your thinking to “pay yourself first” and immediately put part of your paycheck into a savings account every month, you will find that saving becomes easier and you will watch your savings account grow every month.

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