Today, it is common for many people to lose sleep because of debt.
Therefore, ideas were provided to better use credit cards on vacation, since a simple break can become a headache, if we do not know how to control our expenses intelligently.
Debt sometimes is good though. You heard me right. Some of the rich people you envy get to where they are right now through debt -i mean loans to sponsor a business.
The difference is they are using it to make money while some are using it to meet needs or wants.
Even if the person who gets a loan to sponsor a business lost the money because the business failed, he has gained experience through the failed business.
Some live in debt with expenses after vacations, mortgages, late payments, among others, that finally end up generating discomfort, instead of a calm and happy life.
In addition to the above, every day, it is more difficult to have credit options to cancel debts, and this is one of the reasons why many families end up selling their resources to pay debts instead of making other more important expenses, such as investing in education or the idea of your own business.
On the other hand, some incur expenses greater than those they are capable of generating, and therefore, they cannot live debt-free either.
Because of this, I want to share with you a series of tips that will allow you to live a happy life free of debt.
If someone can pay up to $80,000 in debt and is now living fine because of a careful plan to live a debt-free life, why not you?
TIPS FOR A DEBT FREE LIFE
- Analyze the number of debts: If you already have enough debts, then you can not continue to pretend that they do not exist, what is necessary is to be aware of it and develop an action plan to be able to free yourself. Calculate the exact amount of what you owe, how much interest it is generating, and write it on a sheet of paper.
2. Share with your family what is happening to you: Doing this can help you cope and relieve yourself a bit of stress since support is essential and makes the situation much easier to overcome. Some are afraid to talk about the reality of their finances, but this will only lead to you feeling more alone and with greater discomfort.
3. Get advice:
If you have no idea how to start getting out of all the debts you have, you can go to one of the institutions that offer advice, and that work without charging for it, since they are to work without profit.
Or better still, talk to a very trusted person with proved results in Money Management and offering advice.
4. Make a budget:
Since this will allow you to visualize your income, the expenses you make each month, what expenses you can reduce and how much you could reduce debts.
5. Contact the creditors:
Since this is the only way to reach an agreement, as they need to get their money back, and you need to get out of debt.
In this way, by explaining the plan you have drawn up, they may be able to reach an agreement in which you can make small payments, and they could even reduce some part of the interest.
6. Establish priorities: This means that if you have several debts, remember that the priority should be that you pay the mortgage first, instead of the expenses made with the credit card since if you do not do the first thing, you would put the having a home to live in.
Once you pay the mortgage, you can start paying off the debts that earn you higher interest.
7. Think of a savings plan:
As soon as you have gotten out of debt, since having funds will help you not to enter new debt again. Savings are essential since they can help you deal with unexpected situations.
8. Use other means of transport:
You can do this by opting for the cheapest ones for your pocket.
For example, instead of wasting an hour getting around on a bus, you can use your bicycle which, in addition to being a more ecological option, can help you reduce stress and your health in general.
If you use it, you could reduce the expenses of your account for gasoline, maintenance, taxes, among others.
9. Modify your habits: (especially when consuming):
Avoid giving in to the desire to buy things that you really cannot pay for in full, since then you will see it reflected next month in your account statements.
If you need to make a significant expense, start by planning savings a month in advance, so you can have greater support when making the purchase, without representing a debt that is impossible to pay later.
10. Avoid unnecessary expenses:
if you think about it, you will see that many times some people buy things that even after a few days they stop remembering that they have bought them, and thus they create a bad habit that does not allow their finances to stabilize, and above all which they do not have any type of control, since they end up making these expenses unconsciously.
11. Look for other options:
For example, instead of going out to eat every weekend away from home, you can get together with your family or friends at home and prepare a delicious meal in which everyone collaborates. In the same way, if you don’t have time to prepare food for your work, then prepare them on the weekend and keep them in the refrigerator, so that later you only have to heat it and avoid expenses in ordering food.
12. Choose good hobbies that do not involve heavy expenses in your finances:
For example, in a library, you can distract yourself by reading books, watching magazines, newspapers, movies, among others, as well as participating in other activities, without having to make a large expense.
Finding different and profitable hobbies can help you socialize more, and in which you can also exercise and have a good time, without representing a blow to your economy.
13. Invest a higher percentage of your income:
Now that you have settled your debts, I’ll be so selfish to not tell you to invest. Because when you invest, you get Return On Investment (ROI) every specific date signed on your agreement form, and you can use that to settle any expense which might arise unaware.
Remember that many times, living without debt depends on the attitude we have with money and the use that we are giving it. Being aware of our income and the expenses we make will allow us to have better control over our finances, which will allow us to live happily and calmly, free of debt.
Thanks for reading.
What did you learn? And which one is best to tackle your constant getting into debts?
Kindly share in the comment section.
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