Although it may not sound practical, many people have managed to live their entire life debt free. This is something you can do but you must commit yourself to it. Also, you need to set the right strategies to help you achieve the goal. Avoid listening to naysayers and commit yourself to your chosen plan.
Here are ways that can help you keep off from debts and lead a debt free lifestyle.
Build savings
The best way to keep off debts is to work hard and build your savings. If the savings are substantial, it guarantees that you would be able to foot unexpected expenses without the need to borrow. Expenses such as medical bills, car repair may require that you borrow some money. But if you have savings, you will pay for them without incurring debts. When you lead a debt-free life, you save the money you would be forking out as interest every month. You can use this money to increase your savings.
Also, you need to be on the lookout for a loophole in your budget which can help you save. If an opportunity to save emerges, grab it and use the money to build the savings.
Pay credit card transactions as soon as possible
Make it a policy to transact in cash whenever you can. When you commit yourself to use physical currency, it helps you avoid impulse buying. Credit cards companies make things easier for you to encourage you to spend. For instance, they allow you to make reservations, pay for travel expenses and purchase food items from your store using a credit card. The idea is to encourage you to spend so that they profit.
But, when you choose to pay all the purchases using physical currency, it helps you to avoid spending money unnecessarily. If you find it difficult to operate without a credit card, you can get one but make a resolution to pay for any purchase you make using the credit card the same day.
Buy a used car cheaply
You don’t have to buy a brand-new car at the onset. Buying a new car may require that you take a loan. But you can avoid this by just using your savings to buy an affordable second-hand car. It is true that many people think that it is risky to buy a second-hand car. But they forget that buying a new car exposes you to crafty salespeople whose goal is to upsell the vehicle at the highest possible profit with very restrictive warranty. So, it may be necessary that you do your research so that you find a second hand but reliable car. Listen to your mechanic and rely on your judgement to decide whether the vehicle is in good condition or not.
We have plenty of ideas that can help you lead a debt free life. But building your savings and paying cash whenever you can should be on top of the list. Also, consider making savings on any item or equipment you buy. For more information, visit https://www.national-debt-help.co.uk/
