“… Income twenty pounds, expenditure £19.90, result happiness,” declared Mr Micawber in Charles Dickens’ book David Copperfield.  “Income twenty pounds, expenditure £20.10, result misery.”

This was written 150 years ago in pounds, shillings & pence and it referred to a reasonable annual income at that time. Today, we may be amused that anyone could live on £20.00 per year and, as Mr Micawber attempted, keep his family and a servant too, but the sentiment of the statement remains true to this day.  If your expenditure is greater than your income then you will be in debt and anyone who has experienced debt will vouch that it is misery.

So what’s the remedy?  Increase your income, reduce your expenditure, or do both.  Easier said than done?  Well, Mr Micawber ended up going to prison for his debts but we live in much more financially-liberated days so, actually, we have a better chance of improving our personal finances than he did. 

So here’s our top ten countdown as to ways of keeping yourself out of debt:

1. Aim to save not borrow; then use your savings to buy the things that you really want.

2. Don’t smoke!  You would be amazed at how many people do not realise that they spend more money on fags than food.

3. You don’t have to go out every night!  Reduce the number of times that you go the Pub etc.

4. Beware of Christmas; its enjoyment does not depend on the amount you spend on presents.

5. Get a job; or get a better paid job.  Recession or not, some people even have two jobs!

6. Prioritise and pay important bills on time like rent and council tax – if you don’t, court costs and bailiff costs will be added and this can cost you literally hundreds of pounds extra each year.

7. Do you really need that expensive car on HP?  Pay cash for a cheaper one and save on those monthly payments.

8. Is that holiday really essential?  It costs a fortune to follow the sun.

9. Keep up your payments on your mortgage; as soon as you are in arrears many mortgage companies start adding monthly charges and extra interest to your account making your mortgage more expensive.  Always remember, the quicker you pay your mortgage the cheaper it will be in long-run.

10. Be very careful about being persuaded to debts by re-mortgaging your home.  Debt Collectors may hassle you, but it is never worth loosing your house for a pair of trousers.

And as a final idea; how about flogging your unwanted items on ebay or at a car boot sale to raise a little extra cash?



By: Nick Hacket Pain

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