Living completely debt-free is challenging – but not impossible.
Many people succeed in living their lives without falling too deep into debt. People of different ages and income levels have made this choice. It requires dedication, but if it’s something you want, don’t allow naysayers talk you out of it.
There are multiple methods out there for people like you who are looking to cut spending, pay debts, or avoid it all together. The important thing is to choose a system that works for you. Review yourself. You know your weaknesses, and that’s where you should start.
Here are a couple of ways to avoid acquiring debt.
Pay off any debt immediately. For many people, it helps to use physical currency to avoid making impulse buys or racking up a huge credit card balance. A credit card makes obtaining expensive things easier. Renting a car, traveling, making hotel reservations, and splurges on technology. If you know yourself as an impulse spender, and a credit card isn’t something you can handle – just don’t get one. Otherwise, don’t be afraid to use your credit card for its rewards points and cash back. Never wait for the monthly bill, instead pay it ASAP. This will force you to think about how much money you have before you swipe.
Build Large Savings. Earning a sizable savings account is a feat in itself. It’s also the most effective way to stay out of debt. Think of your savings as a preparation for emergency expenses. This way, when car repairs or medical bills pop up, you won’t rush to your nearest credit card. Saving is also essential if one of your goals is to purchase a property of your own. When it comes to choosing mortgage, home loans offered by Newcastle Permanent is a perfect place to start looking.
Get a cheap used car. Many of us can’t afford a brand new car outright, so many opt to take on a car payment. But here’s the deal: No one needs a car loan. There are plenty of dependable used cars available out there. There is a risk involved in buying a used car, but there is also a risk in dealing with wily salesmen at the dealership, who often mislead you into buying restrictive and costly warrantees. Do your research on reliable car types, take a good mechanic with you, and use your judgement when purchasing your car. Buying a good car can last for years with relatively little maintenance.
You can also utilize public transportation depending on your location, but in rural areas, a car is often a necessity.
Rent. Boy oh boy, what happened with “why rent when you can buy” philosophy I see every day? While renting for life sounds like a living nightmare to some people, real estate is not cheap either. If you are committed to staying debt-free, then housing is your biggest challenge. That aside, saving up for a good home is a totally plausible idea once you save enough for a mortgage and is employed in a steady company. If you’re single and living alone is out of your budget, consider subletting or renting a room until you’re ready to get affordable home loans in your preferred location.
Being debt-free starts with a conscious effort and a commitment to follow through your objective. Best of luck!