Flickr photo by Norway UN (New York)
Sarah Ferguson, aka Fergie, sold a British tabloid reporter access to her ex-husband Prince Andrew in exchange for a reported $750,000. Why? (... skipping the well-deserved snarky answer ...) Well, Fergie made some pretty poor financial mistakes along the way resulting in mountains of debt. Selling access was how she saw her way out it.
Don't make financial mistakes like Fergie. Read on to see how to stay on the straight and narrow.
1. Understand Your Net Worth
No longer a real royal, but living life like one, Fergie overestimated her net worth. Jet setting and spending more than she earned, she neglected to save up properly for the future. Because she didn’t take the time to plan her personal finances, rein in her personal spending, and create adequate forms of revenue, she now is paying the price.
2. Create a Budget to Avoid Overspending
Creating a budget and sticking to it is critical. It is difficult, but this discipline will keep you in control of your money and help you spend within your means. Fergie overindulged when it came to spending -- $70,000 on dresses!
3. Pay Your Bills and Pay Them on Time!
Now is no time to be a princess. Your financial health seriously depends on whether you pay your bills on time. (Just like your own mom told you!) Not only will you face interest charges on unpaid credit card debt but potential legal charges as well. Fergie currently faces legal proceedings in London for unpaid bills amounting to almost $288,000. Yikes!
Set up online bill pay to remind yourself to pay your bills on time!
4. Take the Right Steps to Get Out of Debt
If you’ve already found yourself in a heap of debt, don’t pull a Fergie and sell access to your ex-husband for money! Seriously. Getting out of the red is a difficult feat, but with discipline and determination, you can pay down your debt and shape a better financial future yourself.
Alexa von Tobel is the CEO and Founder of LearnVest, a personal finance hub that, among many, many other things, offers the best tips on how to lose debt like you lose that baby weight!