Avoiding Debt and Setting Yourself up for Wealth

Matt Edwins - http://www.edebtz.com

While not everyone can be a millionaire, there are certainly ways to make it more likely. And it doesn't take a lot of money to do it, just a bit of planning.

It's not what you make

Many folk just don't'teven consider the idea of increasing their wealth - they believe they simply don't'tearn to warrant the initial capital they will need. They are wrong. It might not be a gold mine, but at the same time, its how you use what you can spare, not how much you have in spare that is important.

You want to make a list of the money that you make each month as well as all of the expenses you plan to have. Whatever is left is what you can then use to build your savings.

No surplus left over

Sometimes, it is tough to put a little away. This is the time you need to take a look at where your money goes, and see if you can cut back on some things. Lots of folk buy luxury stuff without really seeing it can get their spending rocketing.

A small thing like a $5 soda's worth every day builds to $150 a month, on average, and yikes -- $1800 a year. That's a fair amount that you could have easily stashed away instead, and made some interest on, in the bargain.

Spending like this, on soda and things like that means you have that much less tomorrow, and years on.

Watch out for the hole of debt

If you seem to be spending more than you are earning, it is time to reassess your expenses or get a second job. This may come across as rather callous but it is the only way to avoid getting into debt and build up your savings.

Whipping out your credit card without thinking is a sure way of overspending. Never charge items on your card unless you are sure you can pay for them. Paying your credit card bill on time ensures that you are not charged exorbitant interest for late payments.

Where possible, stick to cash and checks to pay for your shopping. That way you don't overspend since you only buy those items you have the money to pay for.

Building wealth is more about being sensible with the money you can spare, than how much money you have to spare. Stashing away what you can, even if it is in a basic interest bearing savings account, helps. It all builds up, bit-by-bit, month-by-month away, into a healthy bank balance.

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