How To 'Practically' Avoid Debt

[moonchild]

Debt is avoidable if you learn to live within your means, as humans we feel the need to upgrade our lifestyles periodically when we get a raise from our workplace or get some money, we feel like we have to make our lives match our income which is totally untrue.

This insatiable desire makes us to start spending money we don't have which can be referred to debt or credit, overtime the money adds up and we become miserable because when we get our paycheck instead of using it to pay bills you will use it to service debt.

If you can't afford it, hate it, you can't buy what you hate will you?, that's the mindset you need to adopt, if you don't have the money to buy something act like it just doesn't exist, because if you don't do that you'll end up longing for it.

Cut your expenses, media had us thinking we need a lot of things in life, when all we need is food, water and shelter, every other thing is just for pleasure.

This is called Spartan lifestyle, when you're building your business especially, don't bother about spending on frivolous things, focus on putting the money in your business.

 

[Finger Geek]

This is a nice tip you have given. Some people are into debt because they are only after want they want but not what they need when they don't have much. There is no one that don't want good things. But we need to first check our pocket before we go after that thing we want.

First, we need to differentiate between wants and needs. They are two different things. Wants is what we desire to have while needs is what is essential for us to have. Knowing these two things will help us to manage your money well. Like for example, it is necessary to pay for some bills like electricity bills, water bill and many more. Those are parts of what we need and we must pay for. But it not really necessary that we buy car, live large when we only have small. I don't say that we should not buy car, but it is when we have enough money for that. There are some people that take loan to buy a cat. Car is not something that will yield profit for us or something we really need.

 

[Abigael]

It is very true that people get into debt because of not living within your means. I love your idea of hating the things that we cannot afford. It is very true that when you hate something, you won't bother trying to buy it. That is an attitude that will save you a lot of money.

But you must really analyze your expenses first. Knowing what you usually spend your money on will help you decide what you need and what you just want for luxury.

That way, you will start budgeting on your needs and ignoring the wants that you don't need. Then stay disciplined on buying what is on your budget only.

Saving is also very important in avoiding debt. When you have some money saved up, you will hardly take loans during emergencies. You will just use up what you saved. Before you start spending on your budget, save something fast. Otherwise, you will be tempted to use up all your money before you save.

 

[King bell]

You can avoid debt practically by sticking to a budget, using money as a tool instead of an object of worship, and being prudent when you spend.

We all know that living with debt is not the way to go. It can bring about feelings of being trapped in a cycle. It’s hard to pay off one credit card bill when you have other bills coming due and no clear financial path ahead for your future. Debt can sweep away your life’s savings and make retirement seem impossible, removing the freedom to enjoy life during your most active years!

You may be worried that there is no way out from under this relentless burden. Don’t worry, you are not alone. You can avoid debt practically by sticking to a budget, using money as a tool instead of an object of worship, and being prudent when you spend.

Know your worth : You need to be aware of the value of your possessions and the value of your time. Value is assessed by being realistic about how much it actually costs to purchase and maintain the items you want. Don’t let ads and marketers convince you that you need all those things for happiness more than the basics—food, shelter, clothing, health care, transportation and education.