10 Ways To Be Debt Free

Hi guys, thank you for your feedback on my previous posts, and also for sharing them. I do love and appreciate you all. 

When it comes to finance, I believe I've made a couple of mistakes especially years ago, and I wish I knew some of these hacks then; but it's never too late to learn. 

I do understand how tough life can be sometimes, and it's quite possible that some of us could run into debts - even for the right reason(s). 

But below are few ways you can make sure this doesn’t happen to you, because he that goes a-borrowing goes a-sorrowing, and boy, do I hate borrowing money? You have no idea!

1. CHOOSE QUALITY OVER QUANTITY WHEN MAKING A PURCHASE

You know how you go to the market, and you see cheaper products and want to buy a lot? Well you gotta be sure they're quality before purchasing them, because if they're not, then you're wasting your money. It’s either they don’t serve you well, or they keep getting spoilt, and you spend tons of money fixing and re-fixing them.


2. LIVE BELOW YOUR MEANS 

Aha! You see this Instagram life? Don’t let it make you spend all your money trying to impress strangers or people you don’t like/people that don’t like you. It is okay to flex your money if you want to, travel, go on vacay, buy whatever you want, but if you spending more than you earning/getting, you’ll end up being depressed and unsatisfied with life. Spend less than you earn, my lovelies. 

The general rule of thumb is that your vehicles should not be more than half of your annual salary, and your monthly mortgage should be less than 30% of your take-home pay. That means if you earn $50,000 a year, the total value of your vehicles should not be more than $25,000, and your monthly mortgage payment should not be more than $1,250.


3. HAVE A BUDGET

Oh, I can’t emphasize how important this is. I think as a kid, I remember one of my aunts always told my mum to have a budget every month, but mummy never used her budget 👀, and that resulted in spending the money fast, and she’ll be like “how did this money finish?”. 

Rich people budget! That’s why it’s as if they’re stingy. They understand what it means to not have money, and oh! they hate to ask, unless it’s a loan they want to invest into a business. So don’t think budget is for poor people.. it’s not! When you budget, you tell your money where you want it to go! You have control over it. It means you don’t end up spending all your money without even realizing.


4. STOP BORROWING MONEY

If you follow number 2 and 3 strictly, then you wouldn’t have a reason to borrow money because most times when you borrow, you pay with interest, and this is always hard for people who don’t make much. And let me tell you a secret; when going shopping, go with cash, and a list. Keep your debit card at home. When you exhaust your cash, go home. Because when shopping and having in mind that you have your debit card, you could buy more things you didn’t budget for. I am guilty of this.




5. LEARN TO SAY “NO”


Dear Moxie, learn to say no! I remember when I used to be an online shopping addict, I bought so many stuff I haven’t even used till date, but as at then I really thought I needed them. Jokes on me! 

When you see something, or you crave to buy something, give yourself two weeks, and see if you survived without it. If you did, then you don’t need it.


6. NO NEED FOR THE SHOW-OFF

The wealthiest people you’ll ever meet, live the simplest lifestyle. Half the time they not even on social media, and even if they are, they don’t announce their wealth. They don’t let you know how much they’re worth, or how much their outfit is. For e.g when you compliment an average person on their shoe, they’ll go like “thank you, I got it for $1k”. A rich person may reply you like “thank you, they were originally $1k, but I scored a sweet deal, and got it for $500”, and this probably happens when you ask them how much, and where they got it from.


7. PREPARE FOR THE FUTURE

Rich people have multiple savings. Each for a purpose. For e.g, they have savings for future emergencies, savings for holidays, etc. This is one thing I need to learn. It’s very important.


8. PLAN YOUR PURCHASES AHEAD OF TIME

Just like I talked about savings, rich people plan what they want to buy ahead of time. For example, if they want to purchase a car, they plan it months before, look for who’s got a good reputation in car deals, and also how, and where they can get it at a discounted price.


9. DO IT YOURSELF IF YOU CAN 

I’m proud of this one because I always try to do things myself till I can’t. That’s when I spend money. It doesn’t make me stingy! It just makes me happy learning new things. Right from childhood, I love to learn. I tear my clothes, I try to sew them up before my mum finds out because I know she’ll obviously suggest going to a tailor or talking about replacement. One of the common habits of wealthy people is that they try to learn how to do things themselves unless they can’t!


10. KEEP LEARNING ABOUT MONEY

Oh yes, wealthy people don’t stop learning about new ways to make money. Knowledge is power, they say. Also, wealthy people do not make extravagant friends because they understand the power of influence. Practice all these, and you’ll find yourself being closer to a happier, and a more fulfilled life. 

Don’t forget to also give to others when you can.

Have you read What It Actually Means To Listen To Someone

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