Sunday, September 29, 2013
Saved, Sealed, Locked: Life Without Debt
Living life to the fullest is one of the
main principles people who spend extravagantly apply. Since they only live once
and they think they are more than worthy to spend what they earn, they tend to
concentrate themselves on investing on things that are in reality, unnecessary.
Spending for leisure is one thing, but getting into debt because of pure wants
which one cannot really afford is entirely different.
The concept that staying out of debt
equates to self-restriction is a major factor on why people refuse to save a
part of what they earn and not spend excessively. This is actually a myth. The
truth is, saving and avoiding debt does not require you to live a life full of
boredom and say ‘no’ to every occasion that can make you happy. Instead, it is
more about being a responsible consumer and knowing when enough is enough.
The
Wise Spender
Before you can fully create a budget
scheme, it is important that you raise your self-awareness first. How much
money you put into food, per say, should be tallied so that you’d get the exact
proportion of where your money goes after a long month of hard work. To do
this, observe yourself for one or two months and make an expenditure list for
the whole day. Keep and collect all of your receipts so that you won’t miss out
on anything. Then, make a pie chart of how much of your money is allocated for
food, bills, leisure, etc. Through this, you would be able to analyse your
expenditure and cut down on unnecessary items. Also, you would be able to know
where you are spending too much and why.
The
Wise Earner
Contentment is important to attain
happiness, but it can be a disadvantage if you are too contented that you fall
short on your monthly expenses. So, what can you do? Should you cut on your
food allowance and monthly bills? The answer is no. Necessities should never be
cut down, except of you are dining at fancy restaurants every day and 70% of
your income is splurged solely on food. However, if you are not the luxurious
type and you still find that your monthly salary is not enough to suffice your
needs even if only a tiny portion is spent on luxury, then there is only one
thing left for you to do: FIND A PART-TIME JOB. This way, you will never have
to get into debt just to survive the whole month and you would also have more
than enough to save. To achieve the financial success you are aspiring for, you
must not only be wise in spending, but you must also be a wise earner. This
combination will guarantee you a life where debt is absent.
The
Wise Handler
Mishandled finances can be a total pain in
the neck and for you to avoid such, you must be very cautious and you must
monitor your own finances. Never rely on anyone else since it is your money at
stake. Also, read and get informed. If you plan to invest on stocks, let’s say,
you must know all the details necessary for you to earn and not bid goodbye to
your money later on.
Sarah Del Rosario is a finance blogger from
debt-settlement-review.toptenreviews.com, reliable site offering useful tips
about debt
settlement.
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