Debt is something that the majority of us go through during our lifetimes, and while some of it is unavoidable, some debt is preventable.
To help you avoid unnecessary debt, this piece will discuss some of how you can keep a hold on your finances and make the best choices for yourself.
Do Not Get Sucked In
The United States has a very visual and social culture, and it is easy for us to get sucked into what is considered ‘trendy or fashionable’, making you feel like you need the latest gadget or ‘must have’ item or you are missing out. This is a fast-track way to get into debt if you do not have a comfortable budget to accommodate these upgrades, and spoiler alert – many of the people who own expensive items of clothing and technology also can’t afford it.
For example, avoid buying a car that is over your budget because you like the color or want the new, upgraded speaker system, and stick to something that is reliable and costs less to run. If you have a working phone, resist the upgrade and a new contract to get tied into until your phone is no longer functioning. It is also worth remembering that many upgrades are minute and are not even worth the price tag!
Live Below Your Means
It can be hard to cut down on days trips, drinks with the guys, or meals out regularly, especially when we see everyone else doing it, but you do not have to not do these things; they just have to be planned into a budget or be the result of more creative, frugal thinking.
If you know you are going to go out for a couple of drinks, then commit to only having one or two beverages and then stick to water or have friends over for dinner instead of going out. Save money on day trips by preparing and taking lunch with you and looking online for entry deals. These all might seem like very small things, but everything adds up, and these little changes can be the difference between a manageable lifestyle and debt piling up.
If you’re looking for solutions for managing your current debt, then consider companies like OneMain Financial, who offer debt consolidation loans.
Do Not Compare Yourself with Others
Comparing yourself to others can be another slippery slope for accumulating debt. It can be difficult to see others doing the activities and owning the items you might like to own, but everyone is on their own journey, and only you can control your own. Putting the blinkers on and focusing on what you need rather than what you want will work much better for you in the long run, as you will be less inclined to splurge on stuff that does not really make you happy or fills a purpose. It is important to be grateful for what you have and know that things come and go.