At least once in a lifetime everybody gets entangled into a very bad debt. Some people die with it while others work tirelessly to force themselves out of it.
There is too much advice everywhere on the internet and economists like Jeffrey Sachs have dedicated their lives on writing books that can help people and nations to drive away from the nightmare of debt.
Unfortunately, much more said than done people rarely follow the advice that they read so you find them accruing more and more debt and before they know it, they are in too deep.
However, if someone who’s stuck in the valley of debt dared to chose and follow robot-style the advice they read from the books or the internet, they would be amazed by the miraculous liberation and relief from the debt they’d get.
There is however a better way, actually the best way of dealing with debts; not getting into any! Below am going to give you ten tips on how you can live a happy life without debts.
1. Live below your means. Very simply, if you spend less every month than you earn then you won’t get into debt.
2. Cut your spending. There is a saying that if, air was packages well, we would buy it. People spend their money on unnecessary things. You should deal with the necessities and then save for the future.
3. Eat at home before you go shopping in the afternoon or out at night with friends. This way, you won’t spend on the expensive restaurant meals.
4. Write a budget and include on it all your regular bills and expenses through the month. Remember to include everything from bus tickets to mineral water bottles and chewing gum. This will give you a rough idea of how much you spend a month and the things you should cut out.
5. It’s vital that you write a list of the things you are going to buy and how much you have. If you rush shopping, you will waste money buying anything, get broke and borrow.
6. Buy where it’s cheap and in bulk. The prices may even be one franc different so don’t get tempted to believe that one franc is insignificant. Also find out where they give big discounts when you buy in bulk.
7. Know your limits. Don’t try to keep up with your neighbor if you can’t. There are no prizes for getting into debt to impress friends and family.
8. Know the signs. When you find yourself with no debt but also without money, it is a sign showing that this little change made now is better than the years of hardship ahead. Being at zero is better than at negatives.
9. Avoid bank loans. Banks sometimes seem to want to throw money at you. Always remember that this is not free money. They make a healthy profit from giving it to you.
10. Save about 10% of your monthly income to cover unexpected surprises. This means that when the inevitable happens, you have the means to deal with it without getting an expensive loan.