11 Effective Rules for a Simple and Debt-free Lifestyle

empty-pocketsDebt is a common thing to man. Most people in the UK have some form of debt that they owe. From student loans to mortgages to personal loans, the debts people labour under abound. There is definitely no one that does not want to live a debt-free life.

In this article, I will be touching briefly on 11 rules that will be effective if you follow them in helping you attain a debt-free financial status and maintain a debt-free lifestyle.

  1. Save: You need to treat your savings the same way you treat your rent or mortgage and other bills. MarketWatch advises that you should consider your savings a debt to be paid and always put a percentage of your income aside as savings. You can use your savings to take care of emergencies instead of going into debt for them.
  2. Buy essentials only: Learn to buy only what you need. Have a practice of not spending money on unnecessary items.
  3. Set goals: It is easier to save and pay off debts when you set specific goals. Your goals give you a course of action to pursue and help you stay focused.
  4. Buy a used car: Instead of taking that car loan just so that you can buy a new car, why not buy a used car which would of course be cheaper. You will just have to search diligently to find a good one.
  5. Pay off personal loans: It is easy to focus more on credit card debt with higher interest rates than to focus on personal loans. However, both are still debts and you should work to pay off all your personal loans.
  6. Use your credit card less: Having a credit card encourages you to spend what you do not have. Use your credit card less or do not even have one at all. Explore the debit card alternative as well.
  7. Ask for help: Seek more knowledge. Never be afraid or shy to ask people for advice or about strategies that could be useful to you. Just ask.
  8. Learn to say no: You do not have to go with your friends to the bar when they ask you out. You do not have to buy that new phone. Learn to say no to others and to yourself.
  9. Pay off your credit transactions immediately: Do not wait until you receive your monthly bill before you pay off your credit card debt.
  10. Enjoy less luxuries: You need to cut down on vacations and splurges and find alternative ways to enjoy your holidays without spending much.
  11. Invest: Let your savings make some money for you. When you invest you can use the returns to pay off part of your loans and then re-invest the capital.

Follow these rules to the letter to ensure that you’re not one of the 80% of people who find themselves in some kind of debt. Once you find yourself in a position where you’re back in the black, have an awareness of your spending to ensure you don’t quickly fall back into debt again.

Save More Money in 2018

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