By Guest Blogger, Karleia S.
5 Smart and Simple Tips for Avoiding Debt
People have been conditioned to believe that aggressively avoiding debt is no fun. Spending money is one of the easiest ways to get immediate gratification, no matter how short-lived this sense of gratification might be. Unfortunately, overspending has become all too common and it is having a significant and very negative impact on average life qualities. Following are five steps that you can take to avoid debt while still living a pleasure-filled life.
1. Create a Budget
Sadly, many consumers are still eking it out from check to check without solid, written plans for how they are going to manage their money. Not having a budget greatly increases the likelihood of debt and it also eliminates the ability to maintain a consistent savings plan. Take stock of your regular expenses and your total monthly income and then determine the best way to part your funds out. Make sure that you have adequate funds for entertainment and that you are always saving at least some small portion of your earnings for a proverbial rainy day.
2. Increase Your Income
The majority of debt that people are currently taking on right now is associated with short-term funding solutions such as payday loans and car title loans. If you find that you are always searching for some extra cash to cover your regular expenses, you probably aren’t earning enough money. Consider taking on more hours, starting an online business or applying for a better-paying job. When your income is not sufficient for comfortably meeting your costs of living, the practical decision is to increase it. There are many ways that you can do this without having to work more or harder. Spend time brainstorming to determine which strategies will work best for you.
3. Start Using Credit Cards for Emergencies Only
As Faber Inc reminds us, your credit cards should be reserved for major, planned expenses and for emergencies. If you are pulling your cards out each time you enter a store, tracking your spending and adhering to your budget will be impossible. Keep only one credit card in your wallet for urgent expenses and keep the rest of them locked up at home. You may even want to decide whether or not having more than one or two cards is necessary.
4. Start Doing More For Yourself
Before hiring any service provider, consider your own skills and resources and see what you can do on your own. This is true whether you need a handyman or have been paying a local deli each day to make your lunch. Any effort that you make to cut down your spending will give you more money to save.
5. Create a Regular Workout Plan
Exercise and good financial habits are surprisingly connected. This is because most people are making emotion-based decisions each day, rather than practical, balanced judgments. Regular exercise floods the body with feel-good hormones, making it much less likely for people to crave the immediate gratification that unplanned spending provides. Best of all, you really don’t need more than free time to get your fitness routine going. Try taking long, daily walks or creating a small, low-thrills workout area at home. You’ll spend less and feel better.
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