Most people refuse to accept that it is possible to live a debt free life. Are they right? Possibly not. Millions of people worldwide are free from the shackles of debt. There is no reason to believe that you can’t be one of them. Just keep in mind the following things:
– Learn to think smart: Always remember that “A penny saved is a penny earned”. So don’t be lazy; do some research, find out which store offers the same product at a cheaper price. A wise man never accepts the first offer. Whatever you buy make sure that you get yourself the best deal. Be rest assured that you won’t look like a miser.
– Frugal living: It’s time to cut your expenses. You need not be a miser. Just watch out for the small things that you did not notice before. Switch from tap drinking soda to tap water, avoid junk food and shop less. At the end of the month you are bound to find out the difference
– Consider investing money: If you are a young man then investing money is as important as saving it. Make sure that you invest a part of your money, say 10% of it regularly. You might have to live frugally and at times you will really miss the money you invested. But look at the interest rates. They will make you a rich and happy man once you enter a ripe age. Besides you will always have the feeling that your future is secure. It’s something that will keep you relaxed and stress free.
– Ever thought of an emergency fund? Misfortune visits us at most unexpected times. So always save a small portion of your money for a rainy day. It does not matter if it is something as less as 20 cents. Make sure that this is the first thing you do every month.
– Part time jobs can be effective: In addition to your full time job, you can always work part time to earn some extra bucks. Take photographs, for instance, when you are. It will help you to combat monetary problems in a significant manner.
– Investing in stock market-safe enough? It depends. You must have a through knowledge of the stock market to do well. It is highly recommended to invest according to your means. Investing a lump sum coupled with poor understanding of stock market can leave you absolutely ruined and in knee deep debt. However if you play small it may be worth it.
– Set long term goals: It is crucial to have an idea about what you want to do with your life. Do you plan an early retirement? Are you thinking for your child’s higher education? Plan accordingly and live likewise to execute your plan properly. With long term plans you know what you are doing. That is an important step towards an organized life and hence something of prime importance.
– Credit Cards can be a menace: We use credit cards for almost everything now days. However we forget that they can create trouble if you have poor spending habits. Remember that credit card is possibly the largest reason why most people go into debt. The interest rates alone can turn an average person bankrupt. So use credit cards judiciously if you want to stay out of trouble.
– You can come out of your current debt: Understand that you are in debt and don’t add new loans. Start with your creditor to get some concessions. You may also consider debt consolidation and pay off all your debts with a single loan. Try to live a modest life and use cash instead of credit cards. Sooner or later you will be free from the shackles of debt.
– Does a debt free life mean a no to all your desires? Not really. Give yourself an allowance. Buy things within a specific budget. But don’t be extravagant. It is absolutely mandatory that you do not indulge in unwise expenses.
A debt free life does not come without sacrifices. But the compromises you make will pay off in long run. Remember that it is our guilty pleasure that lands us in trouble. So stay organized, live smart and follow the above points to live a blissful deft free life.