“I am debt free.” Is it really impossible for you to say it? But still, being on that situation is still as suffocating as it seems. That is the very reason why we always find some ways to look for different paths where we will be headed to financial freedom. However, if you will never try, nothing will ever happen. Debt will always be there and worse, your debt might grow even bigger.
Use these following strategies to avoid such tremendous situation:
1. Know how to budget
Living from pay check to pay check should be way long over when you were still working. But once you are already living with a partner or with a whole family, this seems not suitable anymore. Therefore, you must learn how to budget and use your money to your own family’s necessities. You can use any personal financial tools in the web or even you can create your own Excel spreadsheet to calculate all of your expenses monthly. This way, you will know where all of your hard work could possible pay off and of course, it is for the benefit of your whole family.
2. Learn to downgrade
Sit down in your living room and ask yourself the following:
“Do you really need the extra channels on your TV?” Some of us subscribe to extra channels even though we do not need or even watch them at all. You can list everything that you would like to delete and call your local TV operator to remove it.
“Is an AC a necessity?” If you are a type of a person who lives alone and spends more time at work than at home, having an AC can sometimes just be a fancy appliances for us. If the temperature is too high inside, you can open your windows or just simply use an electric fan. And if ever it is too cold, warm yourself up by setting up a fire place or if you don’t have a fire place, feel cosy on a thick blanket.
“Do I need a home phone?” Majority of the people nowadays are already connected to a cell services or have a cellular phone and it can be used anywhere you go even in your own home. Therefore, having a home phone can already be discarded.
3. Rank your debts
If you are in debt to more than one person or if your credit card has been used more than you have expected, it is best to list them all and sort it from the highest to lowest. Make sure to pay the highest amount first since it could play as the highest percentage of your whole debt.
4. Organise a garage sale
Do you have many things that you are not using anymore? Old clothes, toys, books, furniture and appliances that can still be used may help you increase your income. Just make sure that they can still be usable and wearable for you to be able to sell it without a doubt.
5. Put your credit card spending in a halt
Want to stop the increase of your debt? Then stop using those cards. Leave them at home and just put some extra cash on your wallet. Sometimes, if we know that we have enough amount money in our hands, we go out of control without knowing the possible outcome, and by using those credit cards would just continually increase the debts that we have.
6. Watch out for sales
Whoever you may ask, everyone loves department mall or grocery stores’ sales. It could allow us to buy more in our list since everything is charged lesser than we have expected. Some even have promos like just buying one and you will be having another one for free while some products like shampoos have a taped item which is also for free.
7. Change habits
Love online shopping? Can’t end a day without hauling at the mall? Do you really need to drop by on a coffee shop and order an Espresso before going to work? Want to get those fries every single day? Maybe it is time to make some changes. Those habits can actually be changed. If you can’t do it, you can first start by doing it every other day, then every other week until you have already come to adapt to the changes. You will later see how well it can change your lifestyle as well and avoid living from pay check to pay check.