How to Avoid Debt

This article would seem like a simple one-step article. The simple answer is "don't borrow money". If you don't borrow money, then you won't have debt. However, one must actually avoid situations that could cause borrowing-temptation. Here's how.

	Commit to getting out of debt and never borrowing. Write this down. Tell your friends. Make sure your spouse is in agreement with this.
	Get on a written monthly budget. This means that you spend all your money on paper before you actually get the money. Designate where every dollar will go before you get it, and don't designate any money that you don't have. If you have a balanced budget and you stick to the budget, then you will not go into debt.
	Start saving for an emergency fund. If you are currently in debt, only put $1000 in an emergency fund until you are out of debt. Once you are out of debt, put aside about half a year of expenses. This way, if an emergency comes up, you will not have to borrow a dime to deal with the financial aspects of the emergency.
	Don't fall for the myth that everyone has a car payment and that the only way to buy a car is to buy it with borrowed money. Remember that your value as a person does not lie in what car you drive. Unless you can afford to pay for the car in cash, you cannot afford the car. Never buy a new car, since cars drop in value dramatically in the first two years or so, and they lose thousands of dollars in value the minute you drive them off the lot. To buy a car in cash, just set aside a certain amount each month (say, $400, which is less than the average car payment), and in just a year, you will have nearly $5000, which can buy an excellent used car.
	Get a job while you are in college to pay for college, and work full time during the summer. Rent a cheap apartment off campus if it is cheaper than dorms, and live with as many roommates as you can.
	Never cosign for anyone else. If a lender thinks your friend or relative needs a cosigner, it means that the lender thinks your friend or relative will not pay the money back, and the lend is right. If you cosign, you will owe the entire amount.
	Get health insurance. If you don't get good health insurance through your employer, consider getting an HSA-type insurance plan (health savings account.) Such plans have very low premiums, because they have very high deductibles. If you have such a plan, you set aside the amount of the deductible each year in a savings account, and pay for the initial medical expenses from that account. Then if there is an emergency or other serious problem - and medical emergencies can costs hundreds of thousands or millions of dollars - then the insurance company will cover it.