Saturday, February 7, 2015

Habits That Aid In Living Debt Free Life

By Beryl Dalton


Debts have become so rampant in people's lives today, such that they cannot become successful in anything they do. Every individual ought to work hard to avoid accruing debts that would otherwise hinder development and growth. Individuals with huge debts are more often than not stressed out on how to pay the debts despite, not having the money to do so. Living debt free life, therefore, becomes imperative.

As an individual, you have to make a priority to live within your means. Individuals who manage to live a debt free life closely monitor how they spend their money. Credit cards are one of the biggest reasons as to why many people get into huge debts; so minimize its use. Ensure that your credit card's statements are frequently monitored so as to control and manage whatever you buy. Every month, analyze overdraft fees and the payment that are due to determine if your expenditure was wise. If the analysis shows that your expenditure exceeds your income, you will have to change how you spend your money.

Any person who wants to have complete control over their finances must learn about money. You do not have to be a super accountant; you just need to understand what is happening with your money. It is a worthy experience because lack of it would make your life very difficult on earth.

Having budgets is also a prerequisite. Budgets require dedication and strict following so as to take full charge of your money. A budget helps cut down costs on unwanted materials. It will help you save more money and enhance your spending habits; that will in turn make you move forward in life.

When you have extra money that you have saved by avoiding unnecessary spending, it is an opportune time to make long and short goals. You become more financially independent and can delve into other options like purchasing a vehicle or saving for retirement.

You must learn to live on less than you make to be debt free. It is human nature than when we focus on immediate gratification we always make foolish decisions. That is why it is important to set long term financial plans earlier. It means that you must save for you to buy. You do not buy on impulse.

Seeking the help of individuals who have managed to build their lives off debt is also important. There are many people who have managed to live debt free and saved enough money for them to buy cars and have retirement money. Everyone should purpose to learn the art of saving. Learn to treat saving just like to treat your daily expenses such as purchasing foodstuff and paying house rent. Save recurrently and on automatic deposit, and make it a habit. You will be surprised at how you will turn out to be financially disciplined.

Lastly, clear all your credit debts before embarking on saving. The habits aforementioned will help you have cash for future purposes. Also, have set goals and objectives that will act as a motivation for saving, and that will keep you alert on what you are pursuing. Setting specific and realistic goals gives you motivation to work extra hard and maintain a debt free record.




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