8 Steps to Gaining Control of Your Expenses and Be Debt-Free

Before you can get your expenses under control you need to change your current mindset, which like most of us has been programmed to consume indiscriminately. Since you and I began watching Saturday morning cartoons we have been constantly bombarded by advertisements promising us popularity, sex, self-confidence, beauty, strength... all this from a mouth wash, or a tiny white mint candy. Do not consume the latest have fashion, electronics, newly touted super food or entertainment and you risk the biggest fear of all; not feeling as you are part of mainstream society.

Madison Avenue ad executives create our self-images, not our values, morals or principles. Accepting yourself for who you really are, flaws and all, has become a foreign concept. Most likely it was an ad executive who coined the phrase, is everything. Advertisers need to sell more than the product; they need to sell an image. They want you to buy the product, plus the lifestyle it represents. Buy a certain brand of beer, jeans, running shoes, golf balls, automobile (do not forget make and model), laptop... whatever, and you add to your image and what others think of you. Carol Moog said it best in her book Are they Selling her Lips?, people need to do to buy an identity is to buy the product. Image costs money, while being true to your self costs a lot less. The consumer-image lifestyle is no less addictive than caffeine, nicotine, or prescription drugs like Klonopin, Vicodin, Tramadol or Ativan (you get the picture). Just because it is legal does not mean it is good for you. As with breaking any addiction, breaking your consumer-image lifestyle addiction will result in withdrawal symptoms. For several months you will not feel like yourself; especially at social gathering and around traditional gift giving occasions. Once the symptoms begin to subside you will begin to notice differences in your life; the first being having more money in your bank account. Eventually credit card statements will cease to exist and there will be a significant reduction in the number of invoices you receive. You will begin sleeping better. Financial worries, along with anxiety and nervousness, will become a distant memory. Gradually, as you climb out of debt, and your savings grow, you will begin to feel better about yourself and your future. One day, in the not too distant future, you will talk about your investment portfolio and not about how much you owe. Imagine that day. Begin debt-free and having control of your finances is a freedom, and exhilarating feeling, most people will never experience. You can be, if you truly want to be, one of the few who experiences this freedom. Before you can begin breaking your consumer-image lifestyle addiction you need to realize this: All we need to live is food, shelter and clothes. Everything else is unnecessary. Nobody ever died from not having cable television, cell phone, flat screen TV, car, magazine subscriptions, daily coffee from the local coffee shop, etc... (you get the picture). As long as you have a roof over your head, nourishing food in your fridge and clothes to protect you from the elements then you have everything you need. Actually you have more than most of the world population. Another way to put your versus into perspective is to ask yourself, would I still be able to live if all I had was my current home, food and clothes? Would I be able to live if I did not have my current home, food and clothes, but I had my stereo, golf clubs and leather sofa? I am not advocating a monastic lifestyle. It is, however, important that you distinguish between your and Look at your last credit card statement. Your debts, the reason you now need to minimize your expenses, stem from your Once you realize you already have more than you need you are ready for begin your rehabilitation. STEP 1: From this moment forward make a solemn vow to purchase only with cash/debit card.

STEP 2: Gather all your credit card and other than one MasterCard or VISA for emergencies, cut them all up. STEP 3: Purchase, with cash, a small note book. Carry this note book around with you and write down every penny you spend (the item you purchased and the amount including taxes). STEP 4: Every Sunday evening go through your note book studying last week purchases. Where they all absolutely necessary? Ask yourself, would have happened if I had not bought ________? Promise yourself to not again make the purchase that was not necessary. STEP 5: Repeat STEP 4 until you are debt-free and in the habit of questioning the necessity of each of your purchases BEFORE you makes the purchase. STEP 6: With the money you are now saving pay off all your debts (i.e. credit cards, car loan, etc...). Your goal is to have no debt other than your mortgage. STEP 7: Once you are debt free set yourself a savings goal (a specific date and amount of money to be saved). Make is a habit to ask yourself BEFORE you spend any money, what I am about to purchase help me achieve my goal of saving $ ________ by ________ (date)? This question will quantify if the purchase you are about to make is absolutely necessary. STEP 8: Once you have reached your savings goal, set another savings goal and speak to a financial advisor to map out a long range financial plan. The hardest part of kicking your consumer-image lifestyle addiction is that temptations, and advertisements, will still constantly be around. Everyday you will see people seeming to enjoy their addiction. There will always be social pressures to conform. By keeping in mind you alone are responsible for your financial health, not Madison Avenue, and resolving to take control of your expenses you will one day be debt-free and enjoying an new phase in your life building wealth.