7 Ways to get on Track Financially

Lately, I have been writing a lot about getting out of debt and getting on track financially. We don't realize how simple becoming Financially Independent is. Yeah, it takes work, lots of time, and dedication but it's more than worth it in the long run.

You can live your dreams. You just have to work for them and plan.

1. Stop overspending.


Really, stop! If you can't afford it (and it's a want), you don't need it. Track what you do spend by using something like Mint.com to see where you might be spending too much and change your habits accordingly. Use this information to create a budget.

2. Make more money.


Turn a hobby/skill/telent/passion into extra income. Sell old books. Make Ebay and Craigslist your new best friends. Work more hours. Take on a second job. Become a tutor. Try to bring in at least $100 a month in extra money...

3. Pay down those credit cards and other debts.


With all this extra money you now have coming in, pay down your credit cards and debts. Use Dave Ramsey's Snowball method to pay down your debts. Make a list of all your debts in order of amount you owe and work your way down the list, one debt at a time.

4. Build an Emergency Fund.


Open a savings account with an online bank, like ING, that gives you a higher interest rate than regular savings accounts. You can't immediately touch this money, so plan well! Set ING to take a set amount out of your regular bank account every payday, of an amount that works for you, and forget about it. Before you know it, you will have money for emergencies.

5. Stop using credit cards as often.


Instead of using your credit cards to buy things, save to buy the things you want. Learn to delay gratification and implement a 24 hour rule on purchases over $100. Think it over. Do you really need it? Right now? Make your credit cards work for you...once you have paid them off use them once a month to buy something small and pay off the balance each month.

6. Downsize if necessary.


If you cant afford to live where you live move or get a roommate. If your car payments are too high or gas is costing you too much, sell your vehicle and get a cheaper one. Downsize your life to a life you can afford.

7. Strip away the non-necessities.


If necessary, get rid of everything that isn't a need for the time being. Focus on your monthly bills, debts, and savings goals. As you clear debts you will have more money a month to do what you please with. Get back on track before you spend on wants.

It seems like a lot of work, and it is, but it is worth it in the end to see your dreams come true and to live the life you want....