OK – so you simply MUST HAVE that pair of shoes on display in the store window. The tag says $50 dollars – but how much are they REALLY going to cost you? It’s not just about the $50 dollars, it’s about increasing your DEBT. Here’s the scoop from Woman’s Day magazine.

Mary Hunt is a financial expert and author of the book Debt-Proof Living. And she says the reason so many people are in debt is because they often fail to see small purchases in terms of what it means to their annual income – and that’s a big problem.  Let’s say you make $60-thousand dollars a year. That’s not bad! So you allow yourself to enjoy a $4 dollar coffee drink every morning on the way work. No big deal, right? WRONG! Here’s why:

First, you don’t really make $60,000 dollars. Chop it by about a third because your TAKE HOME pay, after taxes, is more like $40-thousand. Next, think about your annual coffee habit. $4 dollars a day, 5 days a week over the course of a year – that comes out to more than a thousand dollars you’re spending just on caffeine! And the truth is – a thousand dollars out of $40-thousand is a lot different than $4 dollars out of $60-thousand.

And that’s just ONE expense! Add up all the dinners, drinks and other stuff you don’t even remember - and that’s a BIG chunk of your income. GONE! And now you wanna spend $50 dollars on a pair of shoes? Hunt says the key to getting out of debt is to STOP making foolish purchases.