I read in the New Zealand Herald recently that 25% of Kiwi’s expect their debt levels to rise. Ouch, debt and interest, not good! Sure things are tougher than they used to be, most people realise that the days of just cruising and letting your money take care of itself are over. But bad debt is like a lead weight around your neck in a swimming pool, got to keep away from it!
The main reason people get into debt
Well what is the main reason most people get into debt? Here is the typical situation. The car insurance, registration, dentist bill and the need for new shoes all come at the same time. Ahh, cashflow squeeze! Most people are struggling to get by week to week so the combo of all these things becomes a pretty tough situation. Who can suddenly pull out $700 with no notice? This is where most people become unstuck and reach for that dreaded credit card!
Playing smarter…Big Ticket Bucket
Playing smarter. What it means is planning and being ready for the above “Big Ticket” items. So you may figure that over the year you need $3,000 to cover clothes, car insurance and registration, repairs, dentists, Christmas presents etc. That means you need to split off $250 each month and put it into another account. Your Big Ticket Bucket. When the Big Ticket expenses come up through the year you will have the money ready and waiting to deal to them. You can set up an online call account through Internet banking (no fees), then just set up an Automatic Payment each time you get paid. Easy eh! Do it now.
This is what we call the Big Ticket Bucket and it really helps people to smooth out their financial lives. Now if you want to make sure you have got all your Big Ticket bucket expenses included just jump in and do the free trial. You will see what to put in, get a hand with estimating them and see an overview of how your financesare looking for the year. That should save you some time.
Stay happy, stay away from debt.
Automate your money, free up your life