To stay out of debt the first thing we have to look at is how to avoid falling into the trap of indebtedness.
The traps are always there. But it takes discipline to look away and stay distracted.
The best way to avoid never-ending pressure from creditors to repay overdue bills is to not let the bills become overdue in the first place — or better yet, to avoid getting into debt at all (to the extent possible).
These common-sense rules can help you avoid debt. Check them Out:
Find yourself something doing.
The first step is to be gainfully employed or find a steady inflow of income. For you to sustain yourself, you must have an inflow of income, at least. It’s one thing to satisfy your needs and a different thing to crave for things beyond your income. That leads us to the second step.
Don’t spend more than you earn.
Like I said, attending to your needs is one thing, then craving for your wants is another thing. It takes discipline to stick to your needs in accordance to your level of income. Identify your level and position per time. Be in reality and at peace with where you are at the moment. Good things don’t finish. Some made their money in their 20s, some in their 40s, some in their 50s, and even some in their 60s and 70s. as long as you have the dream, the drive, and focus, you’ll get there.
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Plan within your means.
Make a plan within your income. Your rent, feeding, miscellaneous. Ensure you pay your 10% tithe. And most importantly, remember to take aside 10% savings which you must not touch, no matter how daring the need is. Live in the environment that’s affordable to you at the moment. Put whatever you have in good shape and in good use to avoid having to replace property you should have used more carefully. Let luxury remain in the confinement of your dream for now.
To avoid indebtedness, Invest.
Do not feel comfortable in your position. Strive to improve. Research on the areas to improve on your skills. Research on changing profession if need be. Whatever happens, make sure you are currently doing something to improve on your income. Remember, there will be temptation to increase your spending. It takes another level of discipline not to shoot out into unnecessary spending. You still have a long way to go. It’s time to increase your savings if you’re wise. So, be wise.
If you can put into practise all we’ve said, you have no business being in any debt. You would have brought honour and respect to your self and your family.