The crucial element to staying debt free is to manage your finances through things like cutting back, budgeting, and saving money. It will require hard work, but it’s possible and doable. You might be blown away by how several small things you can do can assist you in living a debt-free life.
Below are 9 tips to help you stay out of debt:
A well-planned budget will also help you determine the total amount you can pay every month toward any current consumer debt. Make sure you create a reasonable budget and stick to it.
- Cancel DSTV
One step to remaining debt-free is spending less. And one solution for spending less is to decrease your monthly expenses like DSTV. You can use a budget-friendly alternative like Netflix or Showmax to keep up with your favourite TV shows.
- Stop Comparing
Try to avoid comparing your life to other people’s lives. Spend less time with so-called pals who look at spending as a competing sport.
- Go for the Store Brand
Don’t think that more expensive means better quality. Nearly any product you can buy at the grocery store, from peanut butter to paper towels to pet food, is offered as a less expensive store brand. And in most cases, there’s not a clear distinction.
- Raise your Income
Ask for an increase, if you feel comfortable doing that. Or, get a part-time job. If you have a unique talent, like baking, photography, dog training or anything else, you could be capable of making additional money providing your services.
- Just say “no”
Staying debt free implies being in charge of your desires to spend money. You might have a difficult time leaving the grocery store without random purchases, or perhaps you’re vulnerable to internet shopping when bored. The next step is to modify your behaviour. Send another person to the store or stick to a grocery list. Unsubscribe from sales emails from your favourite online stores. Do whatever it takes to avoid temptation.
- Don’t Upgrade your Phone
Upgrading your phone contract comes with a substantial price tag if you finance it through your mobile phone provider. Keep your phone as long as possible. And when you absolutely have to get a new one, go for a slightly older model
- Quit Smoking
I’ll spare you the talk about the ton of health problems linked to smoking. I’m sure you’ve heard all of them previously. However, I will point out that, as well as being unsafe, cigarettes are costly. You do the maths and decide if it is worth your hard earned money.
- Sell Some Stuff
Take some time and go through your closets, home or garage and gather up anything that you don’t actually use, but that someone else might want. Use the extra money to pay off debt or add it to your emergency fund.
Being debt-free doesn’t suggest living a life of complete deprivation. What it does mean, though, is learning how to spend money responsibly. Allow yourself a little budget for the occasional treat.