3 tips to keep your self debt-free

A debt free lifestyle is quite easier to lead than you think it is.

13:43 17 June 2014

You might have heard of the saying, “Making money is easy, it is keeping it that is hard.”  If you have just started earning your money, have no financial obligations or family responsibilities, it would just be too easy to live a life of extravagance without any thought for the consequences.  Without having an organized way of tracking your income and expenditures, it will not be surprising to find yourself spending more than what you earn and being in debt without even being aware of it.  

 

Hopefully, the following tips can help you keep yourself debt-free.

 

Set Your Priorities Straight

 

Before doing anything, start by listing down the things you have to do or acquire in order of importance.  Honestly determine if the things you plan to acquire are needs or just wants.  This could be the major factor that could spell the difference between living without debts and being deep in debt.  Having done the list, the next thing to do to make it really work is to have the will to stay within budget and just spend for the things that you really need.

 

Know How Much Money You Have That You Can Spend

 

Knowing how much money you have plus all your other assets put together will help you make you informed decisions concerning your finances. If you have not been tracking your income and expenditures lately, it would not come as a surprise that your money in the bank is gone and that you have been running on overdraft.  Unpaid bills could start mounting and interests start compounding.  This is where you begin the sorry road to debt.

 

Spend Not More Than You Earn

 

This could very well be the golden rule for a debt-free life.  There is no point in trying to keeping up with the Joneses if that will lead you to harm.  Learn to say no to friends’ invitation to fancy dinners or luxurious vacations which you know you cannot afford.