Debt is an amount of money borrowed by one party from another. It’s usually one of the many financial problems that most of us experience.
What are we going to do in order for us to not experience this problem?
Here are some tips to help you!
• KNOW THE DIFFERENCE BETWEEN WANTS VS. NEEDS
Needs – goods or services that are necessary to have
Wants – goods or services that are not necessary but we really desire to have.
In order to be free from debt we should really prioritise our needs over our wants, cause NEEDS are the most useful tool in order for us to survive and live whilst WANTS are only desire.
• LEARN TO BE CONTENT WITH WHAT YOU HAVE
This is the most common problem why people are in debt and if you’re in a stage of realising or understanding the differences of Wants vs. Needs you’ll get a deeper understanding of yourself as a person and that could be a fresh start for yourself. You may start enjoying goods/items which are really important to you. Although you may be tempted to buy your wants you’ll now have better control over your spending habits.
Don’t be dominated by your obsessions be the person who’s wise enough to spend money and live harmoniously without any debt.
• MAKE MORE MONEY
We all know that this step is easier to be said than done but this is certainly not impossible to do if you’re hustling hard to earn. Making more money can surely help you be stay away from any debt.
Take a risk and do part-time jobs it takes an extra lot of effort but it can make you live your life on the right track without dealing with financial stress.
• HAVE AN EMERGENCY FUND
In life, we cannot predict what will happen next. We should be extra prepared for everything. Emergency funds are set aside to cover the financial surprises that life may throw in our way. These unexpected events are surely costly and stressing so start to put some money aside so you can access your emergency funds in times when unexpected scenarios happen. Be prepared for the unexpected.
• CREATE A BUDGET PLANNER
Budget planners will help you organise your expenses and savings. By making a planner you’ll know how to budget money in a wiser and free-stress state. You can now prioritise spending your money on goods which are necessary and neglect buying goods which are unnecessary.
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