Staying out of Debt: Tips to make your financial changes permanent

With so many people currently experiencing financial hardship, many different money management, credit counseling, and "get out of debt" programs have cropped up. These programs promise to turn your life around and get your finances back on track.



The reality, however, is that no program can do that. Or at least, no program alone can do that.



Anyone can utilize cash envelope systems, savings programs, or legally established procedures (like bankruptcy) to help them eliminate debt and gain a fresh financial start. The problem is, these solutions are just that – a start. Getting rid of your debt is really only the beginning. To make a permanent financial change in your life, you’re going to have to make changes that run deeper than even your bank account. The most effective and lasting changes are going to be within you.



Let’s compare financial problems to another common problem – weight loss. There are many diets out there that promise (and deliver) quick results, but losing the weight is only the first step, right? Next, a dieter has to be committed to keeping the weight off, which requires a change of mindset just as much as it requires a change of eating and exercise habits. This is why so many dieters find themselves on a sort of weight-loss roller coaster: they can’t mentally commit to keeping the weight off.



The same applies to financial situations. Your mindset needs to change in order for your "new life" to last. Just think about it – what good will your savings account be if you keep making withdrawals from it? How effective will your cash-only plan be if you use your credit card for the occasional drive-thru purchase? The fact is, any financial management system you implement can only be as good as you let it be. Without effort, dedication, and a real change in how you view your finances, chances are that any positive change you make is only going to be temporary.



So how can you make sure you don’t fall into the "quick fix" trap? Here are some tips that will help you make sure that those financial plans you have worked so hard to implement don’t end up putting you on a financial roller coaster.



1. Educate yourself – the right way. Make sure that the books you read and the classes you take are helping you to change your mindset, and not just your actions. Look for information that promotes lasting change and development of positive spending and borrowing habits. These are the lessons that will help you the most in the long run.



2. Set constant reminders. We’re all human, and that makes it all too easy for us to sometimes simply forget what we need to be doing. Develop a system of reminding yourself about your new financial habits. It could be as simple as a sticky note on your steering wheel reminding you to take a brown bag lunch to work. If you’re technologically savvy, consider setting up reminders on your smartphone or computer so you don’t forget to pay that bill or transfer funds into your savings account.



3. Stick to your plan. Whatever financial plan you have chosen to follow, make sure you stick to it completely. This will not only ensure that your plan does what it is intended to do, but it will also help you develop discipline in your financial life.



4. Be accountable. You will be much more likely to stick to your plan and change how your view your finances if you are being held accountable for them. Ask a close friend or relative to help you keep track of your spending, whether on a daily or weekly basis. Knowing that someone is going to be asking you about your spending will probably help you keep things in check.





The important thing to remember here is that you need to work to change your entire financial mindset, not just your temporary spending habits. By doing this, you can help yourself make sure that the positive changes you are making in your life are lasting and meaningful.