| By :
Molly Wider
Are you a nonfat-hold-the-whip-caramel-mocha-latte addict? Do you find yourself digging under the couch cushions for the money to pay for that yummy drink? Maybe it's time to hold-the-coffee altogether, and keep that spare change in your pocket. Try it, like a 30-day challenge. You may be shocked to find the change is enough to make your car payment. Okay, that may be an exaggeration, but what's the point here? The point is most of us don't track those wee things we buy every day-a coffee, a magazine, or a candy bar when we fill up on gas. But those small purchases can add up to a lot more than we sometimes realize. And just by eliminating those impulse purchases you may discover you do have the cash to make your credit card payment this month, instead of wondering how you will explain to your credit card holder-when they call again-that no money's coming. You may think your inability to pay is because you just don't make enough income. Sometimes that is true, and when you finally look at what you owe, a part-time job may be necessary to dig yourself out. Often, though, that's not the case at all. The problem, very often, is that most of us just don't pay close attention to what we spend, and where. Tracking your spending is perhaps one of the biggest favors you can do for yourself if you find yourself short on loan payments, missing payments, bouncing cheques, or asking family and friends to bail you-just this time-and never paying them back. Not meeting financial obligations can ruin your life-keep you awake at night, cause all manner of family arguments, and wreck relationships. Learning how to manage your debt load and maintain good credit and a high credit score takes time. Start with a few simple principles and build from there. First, track your discretionary spending only. See what it adds up to for one month. You may be unpleasantly surprised. Second, hide your credit cards for one month, and try to pay for everything you buy using only cash. Third, if you can stand to do it, stop carrying cash, credit cards, or debit cards altogether. Keep one credit card locked in your glove compartment for emergencies only. These small tactics can add up to a lot more money in your bank account every month, and may show you the way to save as well as how you really can meet your financial obligations with just a bit of money management.
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