Today’s post is a guest post from Azra at Ready For Zero. You can read more about Azra at the end of this post. I am done traveling so next week posts will resume as usual!

Nearly two months have passed since the beginning of the New Year, a time when many of us had resolved that 2012 is the year that we’ll make some serious strides in getting out of debt. The problem is that getting out of debt is never quite as fun or easy as getting into debt, and as hard as we try, sometimes, the same spending habits that dug us into the hole creep up on us.

In this article, I’ve identified four such vices that prevent people from getting out of debt, and ways in which you can stop them from getting the best of your finances.

Vice: Mini-Impulse Buys
In general, you’re not too lavish with your spending, but many times, the gum stand at the grocery store gets the best of you. A latte here, a pack of gum there, can add up to a lot of cash at the end of the month, and can keep you from getting out of debt as fast as you’d like.

How to combat this vice: Allow yourself one or two mini impulse buys (we’re talking the $5 or less kind) per week max to curb your habit and be more mindful of your purchases without feeling completely deprived. Every time you have an urge to make a quick little purchase, try to step back and wait 10 minutes. More often than not, your urge will have strongly decreased or disappeared all together.  If your impulse buys are a little bit more predictable, you need to have alternatives that are readily available to you so that you can bypass the (not so) last minute purchase. An example would be to always have an energy bar or cup of yogurt in your gym bag so that you don’t ‘accidentally’ buy an expensive protein shake right after your workout. As a bonus,  you can use our handy dandy ReadyForZero stickers to cover up your credit cards and remind you



Vice: Big Ticket Items
On a daily basis, you’re pretty good about making smart money decisions. In fact, you actually cut costs on all the little things (like coffee, soda, eating out, etc.). Despite all this, your net worth never grows because every 6-12 months you drop a whole lot of cash on a big purchase. These huge purchases have weighed down your finances so that you’re never saving money despite making lots of little sacrifices.

How to combat this vice:  Take every item you bought in this category last couple of months, add up the total and plug it into this calculator with the total spent as the balance, your highest interest credit card rate in the APR field, and the amount you payed towards that debt in the payment field. That’s how much longer it’ll take you to get out of debt as a result of this purchase. Do this exercise each time you’re tempted in the future to see if it’s really worth the extra payments.

Vice: Social Spending
Do you constantly find yourself blowing cash on food and drinks to hang out with your friends? You’re extroverted butterfly who’s often the life of the party and you simply don’t like to say ‘NO” when friends ask you to do something with them.

How to combat this vice:  The key to fighting this bad habit is in remembering the reasons why you hang out with them, and alternatively, why they like hanging out with you. I am willing to wager that money probably has nothing to do with it. So, keeping this in mind, there are a few little tricks that you can utliize to curb your spending. Bring a fixed amount of cash for the night and eat a little before your hang out. Then, when it’s time to order, you’ll be able to order an appetizer or share a meal with someone and the cash limitation will force you to stay within bounds. Better yet, initiate the plans yourself rather than waiting for someone to make them to have better control over the frugality of the outing. Be adventerous, try hole in the wall joints, or have them over for a fun night in. Opt for lunch vs. dinner plans and focus on the company at hand vs. the items available for consumption.



Vice: Sucker For Sales
Whether it’s that blender that’s 60% off or the pair of shoes that are buy one get one free, you have a hard time passing up on a good deal. You get immense pleasure out of finding amazing deals but many times, you end up buying things you don’t really need and spending more than you had intended.

How to combat this vice:  If the lure of the deal is what’s so hard to resist, why not turn the table table against it and put your deal hunting talents to good use? Whenever you need to purchase anything, always start by make a list of  all the items you need. Then, try to see how cheaply you can purchase the items. Use sites like Coupon Mom or Retail Me Not to find coupons for the items you need, and cross reference grocery store websites to get your weekly/monthly bills down. If you have a smart phone, use apps like Red Laser when you’re shopping items on your list at a brick and mortar store to see if you can find a cheaper deal online.

For me personally, the mini-impulse buys and the social spending are the bad habits that have a tendency to put a dent in my finances. I recently payed the entirety of my of my credit card debt towards the end of last year (wahoo!) and am now slowly beginning to experiment with using credit card to gather cash back rewards. Being disciplined, tracking my spending and following my own advice will be very crucial in making sure that I am successful in staying out of debt.

How about you? Do you have any vices that you’d like to get rid of in order to improve your finances? What are the techniques you use to help curb your spending?

Azra is the product marketing lead at ReadyForZero, a company that is dedicated towards helping you get out of debt faster  on your own.

She’s happy that she’s finally out of credit card debt and is excited to be working at a company that helps people do the same.

Today’s post is a guest post from Carrie at Careful Cents. You can read more about Carrie at the end of this post.

When I was a teenager, I had a ballroom dance teacher that was pretty hard core. He was funny and friendly, but when it came time to dance he was very focused. He worked us to till we were exhausted, and in a lot of pain. Only then would he let us rest for a bit and get some water. Once break time was over he always said the same thing “You kids are young, you don’t need time to rest, you’ll bounce back”.

I hated him for cracking the dance whip, but I can truly say I’m an amazing dancer and have excellent rhythm because of him. The main thing I learned, was that being young is something to take advantage of and to push yourself beyond your limits.

Teenagers and young adults don’t need time to rest. You don’t need to sit back, drink lemonade on the beach somewhere and let life happen to you. Being young is one of the best times in your career and finances, if you can make the most of it. Below are 5 reasons to become debt free and invest in your career while you’re still young.

You have less responsibilities

Whether you’re single or a young couple just starting out, now is the perfect time to work hard and make smart financial moves. Once you start having kids, building a family and putting down roots, you won’t have as much time to focus on your career and money issues.

When you’re young you can live a little, and not be as affected by mistakes or poor choices. The older you get the more people that depend on you, and the harder financial mistakes will be to overcome. The longer we live the more baggage we tend to carry, so start now by ridding yourself of unnecessary financial baggage.

You develop productive lifelong habits

Bad habits are hard to break, and they don’t get easier as you get older. As humans we become more set in our ways, and more set in our way of thinking as time goes by. One of the best things you can do when you’re young is to develop smart, lifelong financial habits.

If you learn stay within a reasonable spending plan, invest for retirement and become a diligent worker now, you will have that much less to worry about later. It’s never to late to make changes, but it’s a lot easier now than 20 years down the road.

You can teach your kids a great example

As you begin to have children, you will either be a good financial role model or a bad one. And believe me, kids pick up on everything. If you hide your purchases or spend money you don’t have, your kids will learn that too.

The best way to teach anyone is by example, and while you’re young is the best time to practice being a good example for your (future) family. You won’t always have the answers or do everything right, but if you start practicing now, you won’t have to take a crash course later.

You can build a great foundation

Once you reach your 40’s and 50’s, you really start to peak with your career. You’ve put in hours and hours of time, and really honed your skills. You know what you’re good at, and what you’re not. You have the potential to make a lot of money within your area of expertise.

If you go into this period without any debt, imagine the money you can save, the places you can travel and the wonderful life you can retire to. Building a good foundation now and putting in lots of hard work, can help maximize your earning potential later.

You have lots of energy

Like my dance teacher used to say “You can rest when you’re older”. Young people are strong, and have lots of energy in comparison to older folks. We can endure longer work days and are more adept to handle stress.

Take the time to work like crazy, find what you’re truly passionate about, and maximize your skills now. There will be plenty of time to sit back, and relax in retirement. But only if you put in the hard work and dedication while you’re young.

What are your reasons for getting out of debt now?

Carrie Smith, is the writer behind the Careful Cents personal finance blog. She’s a Certified Bookkeeper and financial blogger who loves to travel.

She’s also a career junkie, social media addict, debt hater and food lover. Find her on Twitter and Facebook.

Today’s post is a guest post from Steve Stewart at MoneyPlan SOS. You can read more about Steve at the end of this post.

So many of us grew up believing that debt is a tool. We hear that using other people’s money was another way to build wealth. Unfortunately, that is not true for the majority of Americans who started using this “tool” and have gotten themselves into a situation of paying interest instead of earning it.

Hopelessly in debt

The debt becomes a burden and we come the the realization that most of our income is being used to make minimum payments on credit cards, monthly car payments, and student loans. A study by MyVesta.org found 49% of those who struggled with debt could be classified as depressed, and when we are depressed it seems hopeless that we would ever be able to be debt free.

But there’s good news, you have a debt free date!

Even when the amount of debt seems unbearable, there’s good news. As long as you are making your minimum payments and you don’t borrow any more money you have a debt free date! Stop using your credit cards today and you will reduce their balances to zero over time, automatically. Keep sending payments to Sallie Mae and your student loans will be gone, without fail.



How long it will take

Some of your debts will take decades to pay off when making minimum payments. So don’t just make minimum payments. Work extra to earn more money and to keep yourself away from boredom shopping. Sell some things and get an extra boost in your debt elimination plan. Use cash (or debit) to pay for things instead of credit and your debt free date will be upon you in no time.

Don’t be afraid to be debt free

Paying off existing debt is hard and most people give up before even trying. Don’t let that deter you from paying off loans. Earn more, spend less, and send extra to the smallest balance and you will reach your debt free date sooner than you ever imagined. And all you really had to do all along was Pay Attention, Not Interest.

Steve Stewart is a self-proclaimed Personal Finance Architect who has the heart of a teacher. His purpose is teaching everyday Americans the secret on how to win with personal finance, which is to simply Pay Attention, Not Interest. You can read more about Steve on his website, Money Plan SOS. Steve also produces a podcast that you won’t wan to miss. You can find the MoneyPlan SOS podcast here.