You don’t need to be a genius to have a debt free living, even the average Joe who found himself deep in debt can still have a chance to live debt free.
It’s true that not too many people carry no debt at all, but almost anyone can get out of debt by patiently following these 8 simple principals.
Spend less than you take home
To avoid debt, keep track of every dollar you spend. To pay off debt and build wealth, spend less than you make. It is that simple.
Mind the Small amounts
Don’t think $1 saving a day help? Think again. When you start small, you begin to develop the habit of saving and eventually it becomes a second nature to you. It will make a huge difference in your life.
Pay yourself too
This is like another way of saving. Put aside certain amount of money, even if it’s only a very small amount. You pay yourself first before you pay your bills, buy groceries, or do something else.
Set up Goals
Without setting up goals, it feels like you have no direction to move forward to. However, when you know your goals, either paying off debt in 12 months or saving enough money for a family vacation, you will stay focus.
Do whatever works best for you
There’s no right way or wrong way to a debt free living. You need to be determined that you are in charge of your financials. Be eager to take the challenge until you find a way to better fit your life.
This is not a race
You have to love what you do. Find ways to make ‘getting out of debt’ enjoyable. Remember, you’re in this for a long term. You need to slowly change your spending habits as well as your lifestyle. There’s no short cut, but you’ll live debt free.
Don’t wait for perfection
There are many debt relief options you can choose from nowadays. You might not get it right at first; however, take the very first step is what you need to do now. Don’t worry about making a mistake. Without taking action, you are not moving anywhere.
Money is a vehicle that takes you from point A to point B. Money gives you the options to get to your destination, but never let money control your happiness. When you are happy and in control of your life, money actually comes to you, instead of you chasing after money.
These are the 8 basic principles of debt free living. It may not sound simple to you at the beginning, but the sooner you start moving toward your financial goals, the easier it becomes.