10 Steps to a Debt-Free Life

“Rather go to bed without dinner than to rise in debt.” – Benjamin Franklin

10 Steps to a Debt Free Life
by Roman Soluk

If you don’t live in a deep forest, every day you see lots of information about a release of a new gadget, a new collection of clothes, a new makeup and … the opportunity to take a credit to buy all this. Sometimes it turns out that you take a loan and become dependent on the credit institution.

Perhaps some types of loan or debt are almost inevitable (such as mortgage), but some are really unnecessary. Will you enjoy the purchases you’ve made when you can’t get out of debts? No, for sure! So, let’s find out how to be free of unnecessary obligations.

10 Steps to a debt free life

1. Stop digging yourself deeper

Simply, if you’ve decided to get out of debts, stop taking new ones.

2. Manage your finances

Begin to manage your finances. It is possible that you won’t be able to manage everything, but the most important effect of this method is a subconscious desire not to go beyond budget. Once this method becomes a habit, you’ll acquire a skill to make reasonable purchases.

3. Minimize your spendings

You don’t need to start eating dog food, but if you manage to save on something when shopping – do it.

4. Increase your income

You always have options to earn more. And in future, these extra funds can help you. You can start a business, you can do something to increase your salary or to get a promotion, or you can find an additional source of income working from home. There are lots of options. Try to observe the tax law and be aware of the reasons behind your choices.

5. Avoid impulse buying

Before you buy anything expensive, give yourself time to ensure that your decision is not based on impulse buying. After careful analysis, if that thing or service is still needed, then feel free to buy it.

6. Maximize payments on debt repayment

You should understand that it is always good to pay your loan back as quickly as you can (unless you have made an agreement with a bank which charges interest for the early repayment of a credit).

7. Sell something that is no longer necessary

We all collect things that are either not needed or are replaced by new ones, or simply are not used. Look through your stuff and get rid (sell it) of what is not needed by you or your family.

8. Spend less than you earn

Spending less than you earn is the only effective way to pay off all your debts and avoid them in future.

9. Pamper yourself

Pamper yourself for each paid debt or for some other achievements – buy yourself some nice little things. Avoid feeling depressed from cutting back. It’s better to pay off your debts some months later, than to fall into depression.

10. Observe financial discipline after paying all debts

Say no to impulse buying. Set a limit which you can’t exceed when making purchases. You should have a small amount of cash for unpredictable expenses and that’s all.

Follow these tips and you’ll cope with a temptation to get a new credit. Just remember to set priorities. This will help you to understand what you need and to avoid financial problems in future.

About the author

Roman Soluk is the author of Optimistic Life. He dedicated his life and work to optimistic lifestyle, positive living and personal development.

Editor’s Note: Share Your Thoughts

Share your tips for practicing financial prudence in the comments below. Thank you!!

Love and abundance always,

Life Coach. Energy Healing Practitioner.

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