We all need money for us to survive in everyday life. We work hard to earn a significant amount of money. Debt happens when we spend more than what we make. As one of the most common mistake that most people make, we need to learn and understand on how to spend our money wisely.
Are you drowning in debt? Do you want to know how to free yourself from it?
Debt could cause a lot of troubles in life. It could ruin marriages, tear the family apart and could also cause stress, frustration, depression, and anxiety. Act now and follow these financial tips to help lower your debt in life for a debt-free future.
You need to understand that life is better without debt, and having debt is not normal. However, not all debts as bad for there is a good one called leverage or good debt. This results from borrowing money to finance investment. A home mortgage falls into this category too since the value of the property increases as the lease lowers.
Advantages of Being Debt Free
Being free from debt has many advantages in life. One good advantage is that you don’t need to work as hard. You have the freedom to work less and spend more time with your family. If you have lots of debt, you need to work harder to pay off the monthly payments. With that, it makes you tired which means less time for loved ones and activities that you enjoy.
Another advantage of being debt free is you can retire young. You do not need to wait until you reach 60 or 65 and may have the opportunity for early retirement⎯meaning that you can enjoy life while you are still energetic.
So, are those enough reasons to convince you? Now, here are a couple of ideas on how you can be free of debt.
One of the first steps towards a debt-free life is to change, take full control of your finances and change the way you live your life. You need to accept the changes that will happen in your life. If you are used to living a luxurious life, then you need to start living a simple and happy life.
Set a Budget
You need to create a written monthly budget to know where your money is going. Identify what is truly necessary in life. Make sure to strictly stick to it, no matter what. Talk to your family members and ensure that you have their support as well⎯your budget not only applies to you but for the whole family. Improvements should be made to make it work.
Earn More Money
You can do this by looking for a new job that pays well, or consider getting a second job. You can also do both. Another option is asking your boss for overtime opportunities. If it isn’t available, try making money through other creative ways.
If you have skills in carpentry, use it to earn extra by asking friends or neighbors if they have something that needs to be fixed. It may be hard at first, but with determination, you can do it.
Avoid Debt Enabling Habits
If you want to be free of debt, you also need to change your debt enabling habits. What are those? Overeating can be a source of it. Smoking and drinking can also be a part of it. Partying or going out with friends every weekend can also be a factor. But how can they lead to having debt?
Overeating can lead to debt because you always go to restaurants or coffee shops without noticing the money you have spent on these. Even on smoking and drinking, if you will calculate the amount you have spent on these, maybe you will be surprised to know. This is the same with going out every weekend as well.
If you are drowning in debt, all of these should be stopped. Stay at home and cook food for you and your family. Limit alcohol consumption, which is not only good for the body but your pocket too. Instead of going out every weekend, stay at home and spend more quality time with family.
To be debt free, there are lots of sacrifices that need to be done. You need to take action about it before it consumes you. You’ll need to be responsible with your finances⎯acting like your own mobile bookkeeper. I know it’s not easy, but I know you can do it.
Irena Mckenzie is a Castle Hill local and is a very experienced local, mobile bookkeeper and successful small business owner. She has many years’ experience in all facets of bookkeeping and office work. She has run various small businesses for many years and understands exactly what it takes to get a small business up and running at full speed.