Important tips to stay out of debt

Struggling with debt is not a pleasant thing. It surps up your energy and most of the time you find yourself worrying on end how to get out of your predicament. However, we can’t be oblivious to the fact that getting into debt is mostly a result of our own doing. We find ourselves spending money we don’t have just to buy things we don’t need. If you have witnessed a friend or a family member struggling with debt, chances are that you are seeking for ways in which you can avoid that trap and be on top of your finances. If that’s the case, you are in the right place at the right time as this article is penned down to enlighten you on how you can avoid getting into debt.

Avoid spending money that you don’t have

The allure to buy the latest high end phone might be high but remember if you don’t have the money to assuage your desire, it’s advisable that you save until such a time you can afford whatever it is that you want to buy. People get into debt because they spend money they don’t have with the hope that when they eventually get the money, they can always foot the bill. This is dangerous and if you want to stay out of debt, then ensure that you desist from spending money you don’t have.

Budget

It is easier to get into debt especially if you have a habit of spending money without a budget. A budget is quintessential in the sense that it helps you keep track of your expenses. Spending haphazardly without checks will definitely get you in debt. Understand how much money or income you get in a month and plan for it in advance. By so doing, it keeps you in check and ensures that you spend your money wisely. Of course, the benefit is that you avoid getting into debt.

Avoid use of credit cards and if you can’t, control your expenditure

Well, it is easier said than done. Most people are under the illusion that they can actually desist from using a credit card or use it for emergency purposes. However, this is not usually the case. If you are a shopaholic and simply can’t resist the urge to go shopping every now and then, the best thing to do would be to avoid credit cards at all costs. However, if you must own one for whatever reasons, use it appropriately as wrong use of the credit cards will get you deeper into debt.

Do not spend on something you don’t need

Look around you and you will probably notice that majority of the things you buy with your money are not necessarily as basic as you might want to believe. Only spend on items you need. For instance, it’s foolhardy to buy 3 mobile phones when you could just buy one to serve all your needs. Focus on buying things that you only need and you can be assured of saving as much money as possible and ultimately avoiding the debt trap.

Save, save and save

I couldn’t stress enough on the need to save and build up an emergency fund. The future is uncertain and hence it is important that you cultivate a saving habit from as early as is practically possible. It always comes in handy during an emergency or when you have been laid for some reason.