While we can all attest to the need for acquiring credit cards, one needs to avoid the 'swipe and go' technique, which can lead to spending more than what was originally intended. If you are regularly faced with high credit card debt, that is usually a strong indication that you are living beyond your means. Credit cards should not be seen as available funds that may be used to cover monthly expenses. If you find yourself using the cash advance on one card to pay off another, then you're spending money you don't have. Major cutbacks are necessary at this point.

Far too often, people complain about not being able to afford some basic essentials. However, a closer analysis of what these basic essentials are may reveal that they are not so basic after all. Many times, we hear of the struggling young professional who lives from pay cheque to pay cheque, while maintaining that they only purchase 'necessities'. The list of necessities might range from $30,000 for rent, $7,000 for groceries, and another $7,000 for utilities. While these figures may seem manageable on their own, they are often combined with figures of $25,000 for car payments, and another $10,000 for entertainment. When faced with the overall figure of $79,000, it quickly becomes difficult to maintain. Further trimming is necessary in a case like this.

If your plan at the end of this month is to borrow some money from a friend to pay a bill owed to another, stop and consider your options. This might be the start of the revolving loan syndrome that sees you constantly shifting the debt around, rather than eliminating it. There are healthy ways to reduce debt, such as obtaining a debt consolidation loan. You may also consider another option of tightening your belt a bit further this month, and actually pay the debt out of pocket. Try tracking your expenses for three months to ascertain your spending habits. This will aid in the development of a budget that leaves room for debt repayment and investing.

Unforeseen occurrences can happen at anytime. So prepare for the inevitable. Having sufficient cash in a flexible accessible account is one way of doing this. You could also consider reserving an amount on your credit cards as a temporary supplement to an emergency fund. This, however, should be the last resort. These options can assist in withstanding some forms of financial setbacks, such as sudden illness, loss of job or car trouble.

These tips that have been listed are by no means exhaustive, but should merely be considered as a few ways to guard against future financial trouble. Financial suicide can be avoided by implementing an effective and efficient method of money management. Begin today by tracking your expenses for three months, and see where some expenses can be eliminated or reduced.