The burden of debt sits heavily on your shoulders – it’s a millstone that refuses to fall off; instead, it drags you deeper and deeper into this sinkhole. When it comes to debt, prevention is any day better than cure, and prevention as you know, is best when it’s adopted at the earliest. So start learning the lessons of money management right from the time you’re old enough to handle money, and when you do, you never have to worry about the demon called debt again. Begin with these ten simple tips:
Never spend more than you have; it’s simple arithmetic, but most of us fail miserably at it and this is why we end up in debt.- Don’t be so greedy that you lose what you have in the pursuit of something that is not a surety. A bird in the hand is worth more than any number in the bush.
- Get into the habit of saving some money (even the bare minimum will do) every month.
- Don’t pay any more interest than you have to; this means you need to pay off your credit card bills in full and before the due date, and that you must pay off your other loans at the earliest.
- Think more than twice before you buy what you want; focus on your needs first and then, if you have any money left over after fulfilling all your obligations (loan payments and bills), then go ahead and treat yourself.
- Never spend to keep up appearances – it’s more shameful to be in debt than to tell your friends at the outset that you don’t have money to burn.
- Beware of hidden fees and loopholes; if any deal seems too good to be true, it probably is. So before you jump at an offer, read the fine print to protect yourself from spending more than you have to.
- Use financial tools wisely – for example, credit cards are not bad if you pay them off in full and if you don’t use them to withdraw cash; debit cards are better if you don’t risk an overdraft; store card discounts may not be worth the annual fees they charge, and so on.
- Be prepared – stay on top of your insurance policies, your savings plans and your investments. Put aside what you need to today to safeguard your future.
- And finally, lead a simple life; the more you desire, the more likely you will fall prey to debt.
This guest post is contributed by Omar Adams, he writes on the topic of online accounting degree . He welcomes your comments below and or send him an email at: omaradams47@gmail.com.
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