Living day to day after debt is wonderful. But, don’t fail to understand the situation – escaping debt is exceptionally difficult and even more so remaining out of debt!
Being in the red is common in society these days. So getting and remaining out of debt is almost unheard of. In any case, it’s absolutely justified, despite all the trouble! The prizes to being without debt are obvious! More cash, inner peace and money related flexibility.
Being debt free doesn’t generally tackle everything. Misfortunes and surprising cash pits still happen. Being without debt implies rather that those things can be dealt with easier and we can adapt to them.
And keeping in mind that we may never be rich, it’s easier to live a more comfortable lifestyle.
*SA statistics on the average percentage of income spend in 2018:
- 42% – Living expenses
- 17% – Debt
- 18% – Insurance and Medical Aid
- 23% – Savings
Once you are debt free the last thing you would want is to fall back into debt.
Here’s a few tips on how to stay debt free:
- Put together a month to month budget and stick to it. Check your budget structure every month and change it accordingly.
- Don’t stop educating yourself. Keep up with the market related interest rates and keep negotiating for a better rate.
- Don’t fall behind on regularly scheduled instalments for any bills, including credit cards, store cards and other money related commitments.
- Always try and save at least three months living expenses, should any unanticipated loss of work or crisis emerge.
- Shop for goods on sale. In the event that you know you use certain products every month, rather buy in bulk and save from paying single unit prices.
- Set yourself realistic and achievable goals. Cut down on spending to avoid over spending on your salary and having to go back to into the red.
- Join all your cash from your savings or check accounts, trust funds, property value etc. The bigger the savings you can create, the more financial freedom you can have in your life.
- Combine all your debts such as your home loan, credit cards etc.
Your goal is to have a positive net worth value at all times which steadily increases every year.
For help to achieve a debt free life contact the experts at Meerkat today!