by Bruce W. Helmer, RPC (President)

Spending too much is one thing if you have the money to spend. Spending it when you do not have it – going into debt – is quite another. Debt can be the thief of dreams. Used wisely, debt can make your life richer. Used poorly, it may doom you to a life of money worries.

Consumer debt is like driving on a highway through Death Valley where you see signs that the next gas or services are 50-some miles away. Once you’re on that highway, you don’t have many chances to get off or get help. I repeat this admonition, as do all other financial advisors, only because it is so critical to your financial success. If you can’t pay off your credit card bills when they arrive each month, you shouldn’t use a credit card. They are wonderful as a convenience, but that convenience has led many people down a road they cannot exit.

Exercise: Track Your Spending

You may be surprised to find that you are guilty of a habit that dooms you to never having money. Some people who constantly feel money pressure buy themselves little treats or rewards, in part because they never have the money to buy themselves what they really want. But it’s precisely that accumulation of “little” expenses that prevents them from getting ahead. Many don’t even realize they do this. The only way to find out is to keep track of what you spend. Do it for a week or a month. Try to remember every expenditure, no matter how small. Record everything in a little notebook each day. Add them up in different categories at the end of your test period: food and drink, entertainment, utilities, gifts, and so forth. Pay particular attention to the small expenditures on unnecessary items. See how they accumulate over time. .