These days, becoming debt-free seems almost impossible. The convenience of debit and credit cards makes it easy to be buried deep down in debt, especially if you’re not one to keep track of your expenses. You spend money on so many unnecessary things, and you have no control over yourself when it comes to shopping. Sounds familiar? Well, you’re reading the right article.
There are definitely ways on how to be debt free for good - you just have to know how to control your urge to shop, and be more disciplined when it comes to saving money. Here, we discuss the ways on how to be totally debt free and start building your savings.
How to be totally debt free
1. See how much you owe. The first thing that you should do is track and compute every single debt that you owe. You have to face it - forget procrastinating and saying that you’ll do it tomorrow instead. List everything down: from every credit card bill (if you own more than one), cash that you owe people, and even the cash that you took from your savings (yes, you should definitely replace those). Total them in, and see how much you have to pay. Seeing how much you have to pay makes you realize that you shouldn’t spend more, as your first priority should be paying your current debts.
2. Start using cash instead of credit cards. This is the probably most effective way to stop spending too much. Use your own cash on hand, instead of using the bank’s money. When going out, carry or bring cash that you only need, that way, you will not be tempted to buy things that you don’t need, and things that you didn’t plan to buy in the first place. You can still use your card, but make sure that you have the money to pay it on time or even before the due date.
3. Sell the things that you don’t need. More often than not, house owners keep a lot of things in their house that they do not need anymore. It then gets old and neglected, and after a few months or years, ends up being thrown in the attic. Instead of keeping it, sell it online, or even at a garage sale. You can sign up and create an account on eBay or any other buy and sell websites, or join Facebook groups where you can post and sell stuff that you don't use anymore. Not only do you get extra money for your savings, but you also get rid of the clutter and end up having more space in your house!
4. Schedule your bills payment. These days, technology is so advanced that you can schedule bills payment using your bank account. All you have to do is connect your savings account to your bills payment, schedule it every payday, and it will automatically deduct your bills from your account. This way, you pay your bills on time, plus, it’s less hassle for you, too.
5. Buy only the things that you need. It may be easier said than done and it might take a lot of discipline, but living simply is totally possible. Do it gradually if you should, but make sure that you are not borrowing money just to live lavishly.
2017 is definitely the year to change and save up. Good luck with your finances!