How to Live Debt Free

Want to finally start saving your money instead of living pay cheque to pay cheque? The first step is to understand your income. Take a look at your pay stubs and look at what is being deducted from your pay and for what reasons. Do you have your vacation paid out with each pay? If you have any questions about your pay, talk to you employer to help you better understand where your money is going. From there you can track your income for the next few months to see what your income is (especially if your hours vary from week to week).

Next, track your spending. You can do this by keeping your receipts to write down for later or, keep a notebook with you to write down all your purchases as you buy them. Another option is to go back 3 months and look at your banking statements.

To see if your spending is higher than your income, compare the two and take a look at what you most spend your money on. Did you spend more than you worked this month? Is there a category in your spending where you can improve or cut out altogether? An example of this would be cutting out your stop at the coffee shop each morning and just make your coffee at home. Or you could call your cable company and lower your bill by cutting out the channels you don’t watch.

Start a budget. Write down your monthly expenses and allot yourself a reasonable amount for groceries, gas, entertainment and anything else you can’t live without. Next give yourself a monthly amount for savings. It is important to include this so that you don’t forget to save the money that is left in your bank account. Talk to your bank and see if you can open up a separate savings account that you can put your savings into. This way it wont be lumped in with your other money for you to spend.

The last step is to keep with your budget and track future spending. You can adjust your budget as needed. If you do have debt, put that savings towards lowering your debt. Once you are out of debt, put that money towards the future!

When thinking future, remember to invest the savings to benefit for retirement. As you age, you may want to seek private home care and should you not have insurance to cover the costs of private home care, then your savings will cover that cost. It is very important to think of your future now before the time passes and private home care not be an option.

Blue Sky PSWs offers continuity in care, professional and compassionate staff and we work together to keep you satisfied; 100% satisfaction guaranteed. Call our office today to inquire about services or to schedule an in home assessment to begin your services today! Our phone contact is (705) 498-1588 or reach us via email at