Many people mistakenly think that staying out of debt is as simple as just not buying so much stuff. We shame people who are struggling, telling them that they just need to stop buying new cars or lattes. We make people feel like failures when they’re struggling to get by and don’t have enough to pay their bills. 

But buying too many pairs of shoes is not the reason why most people get into debt. Sure, it’s part of the problem and reigning in your spending is certainly important when your bank account is low. All too often, however, there are larger issues, such as medical bills, job loss, insufficient income, or unexpected expenses. 

Some of these problems require systemic change. We need livable wages, affordable housing, and a better system for paying for medical care. At the same time, there are some things you can do that will help you stay out of debt. (Click here to learn how to get out of debt.)

How to stay out of debt

1. Always know your numbers and make sure you spend less than you earn. 

Also known as budgeting, it’s important to know where all of your money goes and to make sure you have enough for everything you need (including saving for the future). If you have no idea how much you earn or spend, figuring that out is the first step. Learn how to get started here. 

2. Build up an emergency fund

An emergency fund protects you from loss of income or other major catastrophes and is designed to help you with basic survival expenses. Having to replace your 20 year old dishwasher is not an emergency. Your spouse getting cancer and being unable to work in addition to having high medical bills is an emergency. 

3. Expect the unexpected

This is where you prepare for that dishwasher replacement and other home or auto repairs. When you own a home, you may not always know which thing is going to break next. The only thing that’s certain is that something will break at some point. 

If you want to stay out of debt, you need to plan for these situations. Create a separate savings account or subaccount specifically for home maintenance and repairs. If you have something specific you know you need, like a new roof, car, or water heater, put extra in it to save up for that item. Otherwise, figure out what you might spend on these things on average in a year and keep at least that amount in your account. 

Having at least something saved for these situations will help you cover the expense instead of financing it with your credit card. 

4. Regularly review your spending

I never recommend that you be so frugal that you never buy anything you want. In fact, I think that is unsustainable and not a great way to live. However, it is worth reviewing your expenses regularly to find things that could be cut or reduced. Rather than just saying that you need to never buy lattes, I encourage you to find things that are mindless, that you don’t really care about, and figure out how to reduce those costs. 

Find subscriptions and memberships you’re not using or shop around for cheaper internet and phone plans. Just like you need to get rid of clutter in your home, you sometimes need to get rid of stuff that’s built up in your budget. 

5. If you are spending too much money, find ways to cut back and stop overspending. 

Far too many personal finance articles tout cutting spending as the solution to all our problems. But those who’ve struggled to get ahead financially are often already experts at frugal living. That said, many of us could be doing better. If that’s you, check out some of these tips for spending less:

6. Be smart with medical bills. 

Unfortunately, medical bills are often incorrect, so it’s important to check through them carefully and ask about anything that doesn’t look right. Call your medical provider and/or your insurance company to ask for clarification and get it corrected. 

If the bill is correct and you can’t pay it in full, do not put it on your credit card. Instead, call your medical provider to see what kind of options you have. People are sometimes able to negotiate a lower amount or at least get on a payment plan with low or zero interest rates simply by talking to the billing department. 

If you had put that bill on your credit card instead, you’d end up with a ridiculously high interest rate and debt that balloons out of control. 

7. Earn more money. 

This is, of course, easier said than done and isn’t a realistic option for everyone. That said, increasing your income is one of the best ways to stay out of debt and attain your financial priorities. Asking for a raise, getting a higher paying job, or taking on an additional job might help, even if just temporarily. 

8. Take advantage of public programs. 

Many people associate accepting help from public programs with shame and failure, but it can really make a difference when you’re in a pinch. If you’re not eligible or don’t need the assistance, advocate for these programs that can be a lifesaver for others—and you never know when you might need it. 

Many successful people have received help from public programs and it has allowed them to spend time educating themselves or building up a business that allowed them to eventually thrive financially. 

Avoiding debt basically comes down to spending less than you earn and saving for future expenses. It’s really not that complicated in theory. It’s only complicated in the way that life itself is complicated. If you struggle to find a job that pays a living wage, lose your job, have high medical bills, become unable to work, or experience any other of life’s many complications, staying out of debt is just not that simple in practice. 

All you can do is do your best to make ends meet, advocate for policies that support us when things go wrong, and go easy on yourself if you do end up going into debt. 

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