You might have carried the burdens of having debts for several months or even years. After doing everything that is available to pay your debts off, you are now totally free. This time, you have to start from scratch. It might be a terrible state, but it is nowhere near where you have been before. Therefore, you have to gradually move your way up and not do the same things that have led you to debt problems. Here are some of the things that you can do to prevent it from happening again.
Cancel your credit cards
You might have been drowned in debts because of your credit cards. There is nothing wrong in using credit cards if you are disciplined. The problem is that when you can just swipe the card each time you buy something, it becomes easier for you to buy things that are not even necessary. Start paying in cash or using debit cards. This makes you more disciplined. It allows you to spend within your means and not go beyond.
Have an emergency fund
If you have not setup one before, it is time to do it. This will ensure that you have something to rely on during the rainy days. Take note though that these funds are only for emergency cases. This includes hospitalization or accident. Unless there is something serious or you think you still have enough money to pay for the current expenses, don’t touch the fund.
Avoid the temptation of buying items on sale
It is easy to be tempted to rush buying items that are on sale. You always have this mentality that if you can’t grab them, someone else would. You are also afraid the items won’t be there the next time. Therefore, even if you don’t need them now or they are not in your budget, you will buy them. These are small things that if piled up, could lead to debt crisis. There is nothing wrong in aspiring to buy cheap items for as long as they are on your budget plan.
Remove everything that is non-essential
Cancel all the luxurious trips that you can live without. You must also stop eating out when you can just buy the ingredients and cook food at home. You have to cancel subscriptions that you don’t need and memberships that are not even used. This will drastically decrease your monthly spending.
No one wants to be buried in debts. Most of all, no one wants to go back to that place when it is already a part of a closed chapter. In the end, avoiding debts is a part of a conscious effort. If you keep doing the same things that have led you to debt problems in the first place, then it will keep happening again. On the other hand, if you are more disciplined and you stick with you spending plan, then you won’t face the same issues in the future.
Featured and 1st image courtesy of Stuart Miles/Freedigitalphotos.net
2nd image courtesy of Idea go/Freedigitalphotos.net