Want To Stay Away From Debt? Make These Lifestyle Changes
January 31, 2019
There are endless things that we need for a daily basis to live our life. Social media, TV, journals, and advertisers even influence us to add more and more things in our life. As a result, we are unknowingly considering our wants as our needs. Thus our life is becoming expensive day by day.
Every day, people are becoming dependent on their credit cards to purchase things that don’t come under their needs. They purchase things by using their credit cards that they can’t afford with cash. They either pay the minimum balance on their cards or ignore the bills completely. Very soon they fall into credit card debts.
Well, not only credit card debt, people are now in huge payday loan debt due to their bad financial habits. Many people fund their expensive trips or marriage by taking out a payday loan that comes with a high interest rate. If you are one of them, you can not meet other important financial goals due to the debt burden. All your earning will wipe away toward your debts. It also destroys your financial future.
Thus, you should live a lifestyle that makes you happy while don’t invite debts. You may need to make some changes to your current lifestyle. Your lifestyle changes can help you save more and take control of your finances.
What changes do you need to make in your lifestyle to stay away from debts?
1. Get rid of your current debts as soon as possible
Before processing towards a debt-free life, you need to get rid of your current debts first. As you have already know that debts are miserable, you should try to repay the debts as soon as possible.
2. Avoid the extreme usage of credit cards
Credit cards are a precursor to debt traps and thus their use should be limited. They should be used as sparingly as possible. You also need to make sure that you shop for a credit card that has a comparatively low rate of interest. In case you can’t pay every month, you may fall in debt for which you may have to look for debt solutions. So it is always better to manage your finances wisely to avoid incurring credit card debt.
3. Start living on less to save more
If you are spending more than you earn. Then you are certainly living beyond your means. Make a list of your needs and wants. Mark the things that you can cut down. It will help you to save money. And when you have some extra money in hand, you can avoid purchasing thing on your credit card.
4. Purchase precisely what you need
You shouldn’t overspend. A lot of money is wasted on unnecessary and impulsive shopping. All of that money can be easily saved once you start budgeting. You need to control your temptation to buy stuff without which you can lead your life. This is a good way of managing your earnings.
5. Keep one car
Keeping multiple cars are wasting money on fuel and maintenance. You have to pay the insurance for all the cars. Also, you can rent your garage to earn some extra money if you have enough space in your garage.
6. Avoid eating out
Eating lunch or dinner at the restaurants is a “no-no” when you want to stay away from debts. Using credit card randomly at the restaurants can save you a certain percentage on the food cost. But you have to repay the bill in full and within time. So, make sure you eat at home instead of eating out frequently. Try eating out occasionally to celebrate a special day.
7. Ditch your Starbucks coffee
No matter how much debt people have, they can’t avoid their favorite Starbucks latte every morning. Well, if you think you can enjoy your Starbucks coffee while attending the debt collectors call, then carry on. But, wise people will prefer a debt-free life over the Starbucks coffee. Because you can make your own Starbucks coffee without visiting the Starbucks. Just buy the necessary things and watch Starbucks coffee tutorial online.
8. Create a monthly budget to save at least 20% of your income
As suggested by financial professionals, it is advised that you should save a minimum of 20% of your income. Even if you are unable to save that amount, in that case, save whatever little you can. Every small saving does make a difference. In the end, you would be surprised to find that whatever you have saved has served you well. Thus, you should formulate a monthly budget. It helps to track where your money is going. If you find that you are spending money on a thing that you don’t need, then you can eliminate the item from your budget. By doing so, you can easily save money. You can use the free budgeting app to create your own budget.
9. Go for the best deal
Today’s market is flooded with discounts, deals, and bargains. However, you need to carefully calculate as to which deal suits your budget and your needs. A good deal of market research is necessary. It is not wise to buy stuff that is cheap but not useful. Prices would vary from one company to the other and thus if you have thorough knowledge regarding the stuff that you want to buy, then you may grab the best deal.
10. Entertain at home
If you have incurred a lot of debt through spending on luxurious vacations and entertainment, cultivate the habit of socializing at your place. Invite your friends at home and prepare your own meals instead of buying packaged foods. You could also ask each one of them to bring a particular dish. This way, the net expense is also minimized and you can have the same fun with your pals.
11. Have an emergency fund
You need to have an emergency fund so that in case of extreme financial crisis, you can use the funds that you had saved from beforehand. If you have money in hand, you can avoid using a credit card when in an emergency situation.
Try to save 6-9 months of saving in an emergency fund so that you can avoid surprise debt in emergency situations.
Lastly, avoiding debts would not be very difficult once you start living within your means. It will help you to manage your finances in such a way that you are never snared by debts. You have to manage your finances in such a way that you never have to fall in debt. To do so, you have to cultivate some good financial habits.
Patricia Sanders is a financial content writer. She is a regular contributor to debtconsolidationcare.com . She has been praised for her effective financial tips that can be followed easily. Her passion for helping people who are stuck in financial problems has earned her recognition and honor in the industry. Besides writing, she loves to travel and read various books. To get in touch with her (or if you have any question regarding this article) email her at firstname.lastname@example.org.
What are you doing to stay away from debt? Let us know in the comments below!
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