Top 4 Tips for Staying Out of Debt
“When you get in debt you become a slave.” -Andrew Jackson
The burden of debt is one of the biggest weights anyone has to carry through their life. When you are in debt for a bank, a company, or a person; the ease of your mind is completely controlled by that factor. The longer you take to pay off your debt, the bigger and worse it will be. Therefore, it is always a smart choice in life to stay off debt. I am sure that you are thinking that it is easier said than done. This is absolutely true. In our lives which are so full of consumption and entertainment, it is nearly impossible to completely stay out of debt. As long as you manage it well, having a small debt is not the end of the world. However, let us give you a few tips to minimize the chances of getting into a huge debt that will affect your life negatively.
1. Pay with cash
As Thomas Jefferson very eloquently once said, “Never spend your money before you have it.”. Your credit card, however, makes this nearly impossible. Why? Because they provide many attractive offers and promotions daily. By all means, go ahead and pay with your credit card but make sure you pay it off within the given period religiously. As long as you pay off on time, credit cards are one of the best ways you can strategize your income.
2. Keep a record of your finances
Most of us suddenly find ourselves in the midst of the financial crisis without having any idea of how we got there. This can be avoided by having a clear and well maintain a record of all our transactions and financial decisions.
3. Stay away from loans
Unless it is for a purpose which counts as an investment, stay away from taking personal loans as much as possible. Get into the habit of saving your money to achieve certain things in life. Rather than going the easy way and getting a loan. When you take long term loans, the chances are that by the end of the loan you will have paid a lot more than what you initially got. If you have to go for a loan, make sure you compare the banks or other financial institutions to go for a loan with the minimum interest and flexible payment plans.
4. Opt for a simpler life
While it is more of a way of living rather than a tip for avoiding debt when you consider the grand scheme of things. Living a simple and wholesome life will bring you a level of satisfaction with a bonus of living a debt-free life. Stay away from meaningless fancy additions to life such as unnecessary tech gadgets and fancy items. Use your money for experiences rather than products and you will surely live a happier and debt-free life.