You should go into debt for education, housing and transportation. These are long- term investments. This is the kind of debt you will have during most of your working career.
The first item in your budget will be paying off these debts. The second item will be putting money away for retirement. You must start retirement savings right away. Make it a routine part of your monthly budget.
The rest of your spending will be about making choices. Do you need or want things? Can you keep your car for a longer time? Are you paying too much for that daily container of coffee? List your expenses and go over them item by item. Cutting back is a lot easier than most people think.
Doing this is called tradeoffs or compromises. Unnecessary purchases are a charge against your future well-being. The future comes faster than you think.
And that is the moral of the story. You will probably live a long time. If you are not prepared for old age it will be very hard. Two things you cannot do: depend on the government or your family.
The best feeling is ending every month in the black.
Source: The Wall Street Journal June 17, 2014