How To Stay Out Of Debt
The 3-Part Plan You Need To Know To Stay Out Of Debt
Page 1 of 2
Disclaimer: This topic is not new. It inundates our political chatter and rears its head every time we turn on the TV. There are no less than a million books on this topic, with everyone from your grandma to Oprah chiming in on how to keep yourself free of debt. But, more so than with other careers, being debtless is instrumental to the long-term success of the artist (I recently quit my job to become an actor). For many wayward adventurers of artistic pursuits, it is the monster in the closet, a constant reminder that constrains every move. This mindset isn’t helped by the high entry costs of most artistic industries. A truly successful artist is not just a master of his or her craft, but is also a marketing genius, a business guru and a networking machine. The product is you, and you are constantly on call. All these costs hit you hardest right when you are starting out, and keeping a tight leash on your expenditures becomes a crucial aspect of your day-to-day.
So how in the world do you keep it together enough to pursue your artistic fancy, live life and not have to consume Cheerios and instant ramen for the foreseeable future? The answer is there is no answer. What has worked for me may not work for you, and vice versa. The best I can do is provide insight into how I have stayed out of debt.
Before I go any further, here is disclaimer No. 2: I am not a financial expert. But I can offer you the following facts: I am 26 years old, I am an actor and I am in the black by a large, undisclosed sum of money — enough to buy a car. I do not say this to show off or flaunt my status; I am only providing it as an example of what is possible.
The path here can be summarized in two words: self-control. Though I've had some help in the last few years, in the end, finances are not someone else’s responsibility. Unless you’re a child or an addict, you are your own best gatekeeper.
The mantras I have followed these past few years are very straightforward:
1. If the money isn’t coming in, then spend only what you need to.
2. If the money is coming in, save what you can for emergencies.
3. Manage one and two to stay in the clear.
None of the above is possible without self-control, which means having a system in place to manage your spending. A system could be something as simple as not spending money on junk food or meticulously documenting every single expenditure. Whatever it is, having one is absolutely crucial. There is no way to control yourself if you have no idea where your money goes. Self-awareness is the first step to self control.
Here’s a way to do it: Put everything you spend on your credit card(s) and pay them off in full every two weeks. If you’re a financial expert, this is setting off all of your alarms, but with a proper system in place it can actually be a very effective way to manage your spending. It does, however, require an iron will.
-
Credit Card
Debt
Make Money