It’s everyone’s desire to live wealthy especially in a society where almost everything you make out of life is determined by how rich you are. If you are financially smart and adopt the right habits with your spending, you can earn enough to be wealthy. However, there is something that could ruin everything you’ve worked for in a snap – debt (Please, note that we are referring to debts incurred on personal expenses and NOT smart leveraged debts used for investments).
Owing not only causes financial failure, it also leads to adverse psychological behavior like depression, shame, frustration, and in extreme cases, even suicidal tendencies. There are, however, ways you could develop habits that could help you live a debt-free life (tabelle di confronto).
Here are some tips to help you…
1. Pay your bills on time: You will always have bills to settle and you know that. No amount of wealth you get can take that away. When the bills come, pay them off at once and don’t procrastinate. Creating a personal budget (and sticking to it) will help. Ensure that you know what your fixed expenses add up to and, consequently, deduct them from your income promptly.
2. Don’t spend when you’re running short: There will always be that temptation to get yourself a little something even when you know you don’t have the means. Sometimes, you try to justify it by saying that you have “earned” it. Other times it seems like such a small, inconsequential expense. However, these things can add up over time to huge sums, sometimes even more than a thousand dollars. Avoid this.
3. Cover the basics: Food, rent, utilities, and health bills – these are important needs you have to cover. Go for cheap but healthy meals so you can avoid treating illnesses. Get your supplements, medication, and pay your utility bills too. But, in all these, learn to separate your wants from your needs. A home is important, a bigger house isn’t always important.
4. Keep yourself entertained: You don’t have to spend a fortune going to see movies, going shopping, going for a dinner, or such things you can’t afford at the moment to keep yourself entertained. Learn to be happy in your own company and spend more time doing fun stuff with people you love in your own home. Get creative!
5. Learn to DIY and cook: There are lots of videos on Youtube on how you can make different stuff on your own with materials in your home. Learning this can help you curb your need to purchase certain items which you’d be able to make yourself. Plus, cooking your own meals ultimately ends up being cheaper and healthier for you. Avoid processed foods like a plague and don’t forget your leftovers too.
6. Never buy on credit: If you desperately need anything, why not save for it? Discipline yourself never to get something that you can’t afford at the moment (with the intention to pay back later). When “later” eventually comes, paying back is always hard and we know there are witnesses reading this shouting “preach!” because it is true. With the exception of a home or a vehicle, you should never buy things on credit. Cancel your credit cards if that’s what it will take (panca inversione migliore).
So, these are our few tips for living a debt-free life. Adding this to a deliberate attempt to educate yourself financially will help you build a financially stable lifestyle like you have dreamed.