In today’s economic situation, it is best to stay clear from debt. Here are a few key points to follow that can assist you with a debt-free record:
- Create a budget and stick to it It’s not a good idea to spend your income without a budget. A budget is like a plan to help you manage your money in a responsible and effective way. Budgets should include every last rand that you spend on a weekly or monthly basis.
- Be realistic
Don’t create budgets and targets that are out of reach. Set goals for yourself that are easily achievable at first. Budgets should also be realistic.
- Buy only when you need and learn to say no
Don’t buy unnecessary things, but buy only when you need something. Keep money aside specifically for social activities and entertainment, and stick to it.
- Value experiences over things
Spend money on experiences before buying things you don’t really need. Experiences carry a much heavier weight when comparing it to material things. Want to go on holiday? Save for that rather than spending a lot of money on a pair of shoes that will be out of fashion by next season anyway.
- Think long-term
Set long-term goals and targets. By doing this, you will eventually see a bigger picture of how you want your money to grow.
Being debt-free has numerous advantages. Therefore, you should always try to avoid debt whenever you can. Need more help or have an enquiry? Speak to us today.