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How to Get Out of Debt?

  • July 16, 2021
  • 3 minutes read

Money is the ultimate transactional resource for acquiring any product or service that is required. That makes it all the more important to have sufficient amount of money for expenses and savings.  

But is earning money the only thing that matters? 

No! There something beyond that. 

Equally important is to manage the money we have.  

Your attitude towards spending and saving money makes all the difference.  

We have a few ideas that will help you manage money better which will eventually lead to living a debt-free life. 

Set a budget that you can follow 

Budget is something we are all aware of. But the common mistake we make in here is to set stringent standards for spending the money we have. While it is good to be careful with the money in hand and save as much as possible, it is even better to do it gradually and with a plan. 

To start with, note down all your daily expenses for a month. Rule out the avoidable expenses from the record and try to find expenses that you can find cheaper options for. Implement this budget plan in the forthcoming month. This will make it an easy-to-follow spending plan rather than having stringent guidelines that are difficult to keep up with. 

Beware of Get-rich-quick schemes 

We all want to get rich quickly. The wait seems to be of a lifetime when it comes to building wealth. This draws people into schemes that will make you rich overnight. Any scheme that claims to make you rich overnight is nothing but a scam. 

There is no shortcut to build wealth. It takes time and effort. 

Being aware of these common plots is an easy way to avoid falling into the trap of these scams. 

  • Scheme that promises a lot of money within a short time span. 
  • A scheme that sounds too good to be true. 
  • Schemes that offer you rewards if you can get a certain number of people to “sign up” to something. 
  • Websites, e-mails, SMS, phone calls and any medium of communication that asks for a deposit of money in return for a large sum of money. Regardless of how small the deposit amount may seem; it still is a scam. 

Dependency on credit card 

Do you reach out to your credit card every time you want to make a purchase? Depending on credit card for your regular expenditure or to indulge in something will only make the debt cycle worse as you will have to pay back the original sum with the dues for it. When this becomes a lifestyle or habit, it creates a terrible and looping debt trap. 

It is always a good idea to spend from the money in hand rather than relying on credit from the bank. Use your credit card only for something that is absolutely necessary and you cannot forego.  

Spend smartly 

When you have budget in place, it becomes easy to keep track when you have the temptation to go overboard. You have to live frugally and give up on the lifestyle you are used to, but cutting down on expenses that are unnecessary.  

In addition to that, try to shop from places that have discount sales so you can save up a bit. Make it a habit to keep an eye on the vouchers and coupons to make purchases on those specific dates. This still means purchasing only the stuff that you need and not just because it is on sale. 

Inculcate the habit of saving 

Changing attitude towards money – earning, saving and spending it makes all the difference. Using the above-mentioned ways, you can break the cycle of debt. But to remain debt-free, it is important to make it your lifestyle. This is something that needs to be worked on every day, for the rest of your life.  

Saving money is not only important when you want to be debt-free, but also to have mental peace. The assurance of having an umbrella of emergency funds to take care of you in times of trouble gives us the peace of mind that otherwise cannot be purchased.  

Make saving money as a way of life and you will start experience a heightened quality of life. For more questions, do reach out to us in the comments below. 

Written by: Marketing Fincity

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