6 Tips To Avoid Getting Into Debt

6 Tips To Avoid Getting Into Debt

Most people would agree that they would rather be debt-free than to owe their creditors/bank/loan company money. Of course, staying debt free isn’t always easy, especially when there’s a lot of pressure nowadays to live up to a certain ‘standard’. If you don’t have a new car, for example, you might feel like people won’t take you seriously. If you don’t own your own home, then you might be afraid that people will look down on you and consider you ‘less successful’ than they are.

But is it possible that we’re looking at debt the wrong way?

Contrary to popular belief, you don’t need to go into debt to become successful or respectable. In fact, you can achieve many (if not all) of your goals without owing anybody anything—if you can set your mind to it and figure out a way to avoid the common debt pitfalls that most people fall into.

Here are some helpful tips that just might help you to avoid the ‘debt trap’. Following these tips might not be possible for everyone—but there’s a good chance that a bit of effort spent the right way will yield fantastic results for your financial situation down the road.

Tip #1… Forget what people think

Being a people pleaser can really get us into trouble when it comes to debt. Maybe you feel like you’re not going to be taken seriously if you don’t have new clothes, a new car, or a new house—but are these feelings really worth going into debt over?

Try to focus on what you want for your life, and try to avoid getting worried about the opinions of others.

Tip #2… Live within your means

Someone once said this… and I found it to be surprisingly good advice.

“If you can’t afford to buy it with cash, you can’t afford to buy it.”

Of course, this statement sounds like a kill-joy to people who want to swipe their credit card for a new TV or pair of shoes, but it can save you a ton of stress and keep you debt-free if you can find it within yourself to live it out on a daily basis.

Tip #3… Minimize your possessions and living space

Living intentionally and buying only what you need will save you a tremendous amount of money. Do you really need that new car or that new jet-ski? If not, then pass on it until you’ve got enough extra cash to cover it without going below the red line.

Tip #4… Don’t be ashamed of your current house, car, or possessions

This can actually be difficult to do—but if you can find it within yourself to be at peace with what you currently have, you’ll find that what you ‘want’ and what you ‘need’ become much easier to discern. You’ll begin to realize that clothes, houses, and cars don’t make the person. It’s who you are that counts—and you are not the sum of your possessions.

Tip #5… Think about the journey rather than about the stuff you could own

When you think about your life and about how people perceive you, try to be a person who does things instead of a person who buys things. Instead of finding your worth and value in what you own, try to find it in what you do with your time and energy.

Tip #6… Learn to sacrifice things that you don’t absolutely need

While it can sometimes be difficult to face the fact that we shouldn’t spend money on something that we want, it’s important to understand that buying whatever we want—at any cost—is a recipe for debt disaster.

Rather than going into debt to buy something that you really want, try to think about changing your goals and/or desires, and set your sights on something within your budget and price range.

You’ll feel much better about yourself afterwards, and exhibiting such self-control over your spending will make you better at handling money and staying on top of your finances.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Scarpenter - Page brought to you by S Carpenter