By Eddah Mbusiro
Do you have debts? Is it a loan you took from a bank that’s hard to pay now? Is it your local home shop supplier of daily basic needs?
Whether you owe huge or less money they all debts and certainly those you owe need their money back.
The belief that living in debts is acceptable and cannot be avoided and is a self-destructive mindset that should change. Most youths are facing this challenge and find it hard to avoid debts in their daily lives.
Although falling a victim of debts can be avoided by simply learning to balance expenses against your income.
Are you tired and want a different life free from debts?
Here are ways any youth who wants a stress free and debt free life can follow to have a happy and simple life.
Buy what you can afford
Stop the habit of purchasing what you cannot afford. It’s as simple as ABC, right?
Before buying, check whether you can afford it then proceed.
Admit you have an overspending problem
By admitting you have a spending problem not only do you come clean with yourself but also get motivated to find a solution to your problem.
Prolonged excuses on how rough time is or how money is tight will only make you a victim of debts, rather concentrate on completely changing, letting that habit die and most of all, manage your finances.
Avoid a lifestyle with debts
Most young adults are confident and think they will always enjoy their salary increments and bonus payments.
They tend to forget the most important things like saving and enjoy an expensive lifestyle
They misspending funds by spending on unnecessary things without any care in the world.
They will confidently take a loan, thinking that they may use their salaries and bonuses to pay off their debts.
Be happy with the little you have
Happiness doesn’t necessarily mean you need all the money in the world to buy
expensive kinds of stuff and own expensive assets.
You could still have fun and be happy. See, it’s something that costs you completely nothing.
“Happiness is my family. No matter what’s going on if you are just hanging out with your family it just seems like everything goes away,” Kim Kardashian ones was quoted as saying.
“Happiness comes from you. No one else can make you happy. You make you happy,” Beyonce once said.
Avoid credit cards
Although they help you during emergencies they are not as good, because you may be tempted to spend what you don’t really have.
Being broke is just a bad spell, which will definitely come to an end if you work of course or have a source of income, don’t just sit and expect manner to knock your door.
Credit companies work for profit they will surely drain you of your finances, place you on debts through minimum payment and compound interest.
It’s your duty to either avoid them completely and avoiding them will best help you stay out of debts.
Stick to a budget
Saying it is a lot easier than putting it into action but having a budget will pull you off from unnecessary debts.
To have a budget is a good thing, considering your expenses on rent, food, transportation, medical bills etc. Minimize your expenses against your income.
These are few ways to stick to a budget.
• Create an annual budget
• Use a budget app
• Keep a list of everything you buy
• Keep your receipts
• Stick to what is on your shopping list
• Prepare your beverages from home, you don’t need to purchase that every day.
Pay debts on time
If you happen to have debts, know what to pay off first, there are important debts to least important.
When you have money clear them first before spending or else you are back on the same routine. And before rushing to take a loan always ensure that you are aware when money is due to be paid and set the funds aside to avoid the following the victim.
Save for things you want
Instead of purchasing on credit which allows you to make less payment and complete your payment at the end of the month, save money and purchase it later.
It could seem like something you would manage but you might not be aware of how much payments are accumulating and before you know it, your salary is flat.