How did you get into debt? -Budgeting 101


Edmund Burke once said, “Those who don’t know history are doomed to repeat it.” Nowhere is this truer than when we talk about debt. If you don’t know how you got into debt, you will continue getting into debt. So today we will look at two ways how you got into debt.

  1. You spend more than you earn.

    If you spend more than you earn it is a sure way to debt. If most of us should stop and add up our monthly expense we would see that our expenses increase our income. Please be clear your income is what you earn not what you get. You are entitled to what you earn, what you get is subjective. example if your spouse normally gives you money to cover expense you have not earned it; therefore it is not your income. If for whatever reason your spouse is unable to give you your regular stipend that is the first step on the staircase to debt.

  2. You Spend what you earn.

    If you spend all of what you earn. That is a sure sign that you are clearly on your way to debt. What this means if any ad-hoc expenditure or emergency should arise you will not have any money to cover it. As sure as the sunset, you will have to go beg or borrow and if you live in Jamaica it will more likely be to borrow as dem going to tell you Time Hard.

 How do you overcome these challenges?

Make a budget.

  1. Write a list of all the things you would like to purchase, bills to pay, things to get done.
  2. Go through the list and attached a price to each item. If the price is unknown estimate the price or how much you are willing to spend
  3. Add up the list and compare it to how much you earn. From your earnings reserve 20%. 10 % to put aside for emergency and the other 10% to put in savings. So for example, if you earn $100,000.00  $20,000.00 would be reserved. That means you will have only $80,000.00 for expenses.
  4. If your budget is over $80,000.00 go through and remove the items that are unnecessary, those items that luxury items.  Your remmy hair is a luxury.
  5.  Stick to your budget.

Make consistent payments towards your current debt. Any extra money received should be used to pay down against your debts.


Avoid any form of borrowing. this includes your credit cards, taking goods on credit (trust).

Geeting into debt

Need help getting out of debt? Shoot me an email

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