Personal debt in America is on the rise and it comes to no surprise. Companies have been getting smarter and smarter about how to advertise to us all. It is very easy to take on debt and be in the red right from the get go. You start in college, take out student loans and some of us have to fight for decades to get back in the black. Our goal has turned to just getting back to zero. We start with roughly $30,000 to $100,000 in debt right from college. Of course, we buy a house and car and perhaps we feel like we are making money but we are taking the long road to getting out of the red.

There are many ways to make us feel like we are not spending money. Ever go to the grocery and after you pay they tell you that you saved "X" amount of dollars? You saved money when you went shopping, you did not spend any money. What a great idea, but it is a lie and you did spend money. If they doubled all of their prices and than marked everything 50% off, is that a deal? Sure you saved money buts its just a trick. Next time you are shopping, listen for how much you SAVE before anyone tells you how much is COSTS! It is amazing that most people tell you your savings when you want to know just the opposite.

Usually coupled with saving money during a purchase is a nice low monthly payment. No one actually tells you the final price when you payments are done, only that is "X" amount a month. This is called financing and it pushes debt out in front of us; spending money that we have not earned yet. It is much easier to spend money when it only costs us $30 a month. Our minds have a hard time thinking in those terms. If you compare your salary a year with any monthly payment of course it will seem low. You are comparing apples and oranges and not matter how obvious it is, we all do it. Forget about saving money and how much it costs a minute, what are the total costs you will incur? Can you pay for it all right now and still put food on the table, if not than you have to review if it is necessary. Pushing debt out in front will limit your options in the future and if anything changes, lose your job or are unable to make a living, your debt is still there waiting for you every month. You may even find yourself paying something off years after you either sold it or became uninterested in it.

There are many more pitfalls to know about but the step to start saving and stop spending so much is a budget. If you just told yourself that you do not need one and you know exactly, where your money goes try the following. Write down what you buy every month and how much. Than look back at the last 30 days and investigate exactly where that money went. I believe you will be surprised. If you arranged your budget to save 10% would you have the car, clothes and house you currently possess? Will you be leaving debt or assets to your kids when you pass on? It will take sacrifices especially if you have been getting deeper into debt for years but the rewards are worth it.