Sadly, as more and more people are confronted with debt and poor on some level with the current economy, there will always be a large number of people who will continue to make the same mistakes time and time again. This repetition will likely leave a lot of those people in debt for a long time to come. It is only when you acknowledge these mistakes and work to correct them will you be able to regain control of you financial situation.

You may be guilty of a few or of all the following points but if even just one of these sounds familiar to you, it may be time to work towards a better financial plan.

Do You:

Spend Two Weeks Pay In One Week?

Living from one paycheck to the next can be hard but living above your paycheck can be a financial death sentence. For those who get paid every two weeks, it is incredibly important to budget your money and have a reasonable plan to stretch out the money for the full two weeks. Blowing your bi-weekly pay in one week’s time will not only leave you far behind, it will also ensure that you will never catch back up again.

Blame Everyone Else But Yourself?

There will always be some convenient person you can fault for your debt. From the boss who doesn’t pay you enough to the debt collectors who rack up penalties, you can try and talk yourself into believing that your debt is not your fault. However, if you are not taking care of your financial responsibilities each and every time, it is no one’s fault but your own.

Blow Off The Bills?

When you get bills in the mail and do nothing more than ignore them, you are at fault for your predicament. If you suspect you are running short at any given time, contact the company and tell them your situation. You can make payment arrangements or at least acknowledge your bill to the company instead of simply ignoring them. This can go a long way to helping your credit score and ease the stress of your debts.

Spend Without A Plan?

Living by the seat of your pants is no way to live. In the event of an emergency, there is no cash, you find yourself making poor financial choices just to get through the situation. Movements such as payday loans, writing bad checks, or charging way more than you can ever pay off only results in bigger debt and more stress.

Again, if any one of these points is familiar to your financial situation, commit to changing now. Stop making the same mistakes over and over and start tackling your debts today and get money smart.

Be Poor (Not Dumb) And Still Get Out of Debt was created by and is property of American Consumer News.

Use Direct Deposit – Utilizing the direct deposit service to deposit your payroll will help keep you from spending the cash in your hand. It makes sense to utilize direct deposit also to help you save money. Most payroll departments can help you set up a plan to have a certain amount of money deposited directly into a savings account so you can start saving on a continual basis.

401K Contribution – If your company offers a retirement plan, make sure you are putting as much into as you can afford, especially if the company matches your contribution. The money you put in is pretax money so your salary will be hit with less taxes.

Readjust your Withholdings – if you have consistently received a income tax refund, you are not working with the correct withholding numbers. Make sure you are paying in just enough to keep you from getting hit with a tax bill at the end of the year. The money you are overpaying to the government can add up fast and help expand our budget or add to your savings. This readjustment is especially important to remember if you get a raise or have another change in your financial situation. Double check your numbers after filing for the changes to make sure they have been processed.

Reevaluate your Health Insurance – Those who have been at their jobs for a significant period of time often do not take the time or remember to check in with their health care plan. Go over the coverage you have and the amount you are paying then check with your human resource department to discuss alternative plans that may fit your needs but be less expensive. Also, make sure you have the best insurance plan for your family. Perhaps your spouse’s new job offers a better program at better rates and it may be worthwhile to switch to the new plan.

Check Out All of the Company Benefits – Depending on the size of your company and the policies they keep, many offer benefits that go unused simply because people do not know they exist. Take time to read through the company manual or your own employment contract and see what is actually available to company employees. Take advantage of employer-reimbursed tuition, group insurance plans, stock discounts, and other benefits often overlooked.

Request Reimbursements - Companies that offer allowances, especially for travel, often provide additional money to cover the cost of travel. However, this money is added to your income and is therefore taxed. Instead, opt for a reimbursement check for mileage or other travel costs that will not be subjected to additional taxes.

Use Raises/Bonuses Wisely – Whatever percentage raise you earn, increase your contribution to your savings account and your 401k account by the same amount. Since you haven’t been used to having the extra money, you won’t miss it if you direct it away immediately.

How to Get the Most Money Out of Your Paycheck was created by and is property of American Consumer News.