Debt Protection: Why Two Factors Always Lead To Money Woes

If you’re in debt, join the club.

If you’re having trouble saving money, see piece of advice above.

The truth is the average person has about a $1,000 in a “savings account,” which is a true stretch of those words. The idea of saving money should go far beyond a thousand dollars, but the fact remains that what we have saved doesn’t compete with the average amount of credit card debt the average person has (between $16,000 and $20,000).

As individuals and families alike go back and forth about debt and how to fix it, two main factors and subsequent contributors come to the forefront right away: budgeting and money mentality among the family members.

The first one is quite simple, cut and dry and to the point: you can’t save money if you don’t have a budget. There, it’s been said, and nothing could be truer about the almighty dollar. Far too often, individuals look at budgeting from too simplistic of a standpoint. You can’t just “wing it” and suggest that because you make a $1,000 every two weeks (so, $2,000 per month) that if you have $500 in rent, $300 for a car and another $200 for utilities that all is well.

The fact remains is that good budgets don’t just go for the big ticket items; they tend to settle in nicely with the other expenses that tend to be overlooked, things as easy to spot as your grocery list, clothing, gas and insurance to small, seemingly (but not) inconsequential purchases on a day to day basis (think coffee, bottled water, lunch at work, etc.).

Budgeting starts and is only effective when you account for everything and make it a point to follow it. Plenty of lonely spreadsheets sit quietly completed and yet not exacted or made useful on a month by month basis.

The second piece, the money mentality among family members, typically pertains to couples. If you don’t share the same thoughts about saving money as your significant other, chances are money is going to be an ongoing issue and point of contention throughout the relationship. A free spender might get a little annoyed with someone who is more concerned with saving money with every paycheck. The key is to talk about money and not shy away from it if one person doesn’t want to discuss the topic and come to an agreement about how money and your relationship should work. And make sure, if you’re the person who is more organized and diligent about money, that you still include the other person in the dealing and decision making.

Being in debt and having money issues isn’t anything new for most. Bringing that to a close takes a lot of patience but also understanding that no budget and no common ground (with another person in this with you) is not where you want to be to start saving.