Thursday, January 8, 2015

How To Live Debt Free

1. Live Below Your Means
If you make $2000 a month live on half, all your expenses should come up to more than $1000 otherwise you will always live paycheck to paycheck.  If you find yourself living on more than half your monthly income then make the most of it for now but eventually start cutting costs and possibly look to relocate or find a better paid job.  Never cross the line and spend more than what you make.

2. Ask
Do not be afraid to ask people for advice or a lead to a better job.  Tell people what is on your mind if you need to call the bank to let them know that you forgot to pay your credit card bill and would like them to waive the fee then go ahead and do so.  Society and the law don't reward those who stay shut yet the world is yours if you just learn how to ask.

3. Entertain and Eat On a Budget
When you buy healthy food (which can be expensive) shop for deals and don't eat out as much until you can afford to do so.  Take your own lunch to work this can be healthier and a money saver.  You don't need to overspend when hanging with friends unless you have the money to do so, get creative you can rent a movie online and watch it with several friends the laughs is what you're really after.

4. Protect The Things You Do Buy
If you make a major purchase this is the one time that you want to pay with plastic. You did the right thing you worked hard and saved but you will not pay with cash or debit.  A credit card will protect you from unnecessary headaches if you have a bank credit card you can read the fine print/benefits and see that they protect you from defective products, theft etc. You can see it as a big brother having your back at the time of purchase there are many advantages so long as you pay for that item in full once your credit card bill arrives.

5. Inform Yourself
The best way to stay out of debt is to develop healthy spending/saving habits and this starts by educating yourself through people, stories of those who have sank into massive debt, blogs, periodicals, videos and books.  I never heard a teacher in school tell me to stay out of debt or tell the class how to develop healthy spending habits perhaps they were all in debt so they couldn't teach what they did not know.  Therefore it is your responsibility to learn and protect yourself financially.

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