As an Indianapolis bankruptcy attorney, I have witnessed multitiudes of people getting deeply into debt. My best suggestions for staying out of debt are very simple and easy to follow. Being an Indiana Bankruptcy Attorney for several years, I have seen debt close up and personal. Although it may take a major overhaul in your approach to life, this list of my best suggestions for staying out of debt can change your life forever.
1. Get Your Monthly Expenses as Close to Zero as Possible
Keeping your expenses as close to zero as possible is one of my best suggestions. You need to make amazing, almost-impossible sounding goals in keeping your expenses low. Do not think, “How can I get a home for $800 per month?” Think more like, “How can I found I place for free or $100 per month?” Remember, some people are PAID to live where they live such as situations where someone receives housing for their job or lives in a duplex.
You need to forget everything you are accustomed to doing and rethink life. If you can get your expenses as close to zero as possible, you will be very unlikely to get back into debt. If your expenses are very low or zero, then you can save or invest every bit of money that comes into the household.
2. Cut Mortgages and Car Loans Out of Your Life
Another of my best suggestions for staying out of debt is to avoid mortgages and car loans at all costs. Serving as an Indiana bankruptcy lawyer for many years, I have personally witnessed mortgages and car loans ruin peoples lives countless times. Responsible, minimal use of mortgages and car can sometimes be advantageous, but are they ever truly necessary? Plans for obtaining paid-in-full homes and cars (or affordable rent) – these are the better way to go. We RARELY see cases where mortgages and car loans are used responsibly and correctly.
Being a follower of Jesus, I use every opportunity to point out truths from the Bible. About mortgages and car loans, the Bible has a very applicable verse in Proverbs 22:7: “The rich rule over the poor, and the borrower is servant to the lender.” If you use mortgages and car loans to support your life style, you very likely put yourself into the category of being willfully “ruled over” by the rich. You are being used by them. They are taking all of your money every month. You are paying 2-3 times (or more) than the value. Cut mortgages and car loans out of your plans for life!
3. Ignore What Everyone Else is Doing and Apply the Truth
This is most likely my best suggestions as an Indianapolis bankruptcy attorney for staying out of debt. You simply need to IGNORE what everyone else is doing and seek out the truth about finances. Money is cold, hard, and indifferent. It works on simple, basic truths: it’s simply mathematical! You can learn the best ways of using money directly from people who are successful. You will find quickly that these successful people usually do the exact OPPOSITE of what everyone else is doing.
Most people will work 40-50 hours per week for the majority of their adult life. However, most people never take the time each week to spend only 1 hour in study and reflection on what they should do with their money. You need to learn the truth about finances and then apply the truth if you want to stay out of debt. Setting aside a couple hours each week for this purpose (along with a commitment to change) will drastically change your life.
Conclusion: Apply My Best Suggestions and Seek Out More
Reading through an article like this can be very thought-provoking. So many times, however, we receive wonderful suggestions for staying out of debt only to continue exactly in our old ways. If you want a truly changed life, follow these best suggestions that I have developed over the years for staying out of debt. In addition, the books line the shelves: the greatest financial minds in history have left all their best suggestions also in countless books ready for you to consume and apply in your life.