The cost of living is getting higher and higher, which means that our expenses have a fixed tendency to rise according to our standard of living. Most of us do not have a personal economic plan, and we do not consider how the economy is changing.
Thus, to maintain our standard of living, we incur debts that end up being impossible for us to pay with the meager income we have. The good news is that we can reorganize ourselves and have a healthy economy.
Little Tips That Help You Avoid Having Financial Debts
First: Be realistic with our economic situation. Locate ourselves in our real economic situation, make a budget of income and expenses, and distribute those values in such a way that our expenses are never greater than our income.
Second: Save And not save anything, it must be at least 5% of our salary (preferably, and what is generally recommended, it is said that it is 10%). Set the goal of saving, and demand the percentage decided (not go to “what comes out”).
There are many things in which we can save to reach that 10% for example: Decrease the frequency with which you buy food from outside – cook more.
Buy wisely, that is, buy objects and clothes that you can wear on different occasions and can combine in multiple ways. Keep track of your daily spending on snacks (snacks, cookies, soft drinks, chips, sweets, etc.); you will be surprised that much of our money in the month stays in this area, which also makes us fat.
Third: Prioritize expenses and debts Add our debts and start a plan to pay them, taking as a priority to pay those with the highest interest as soon as possible.
“How do I save if I owe?” The savings should come from outside your spending budget. It’s your pay, your insurance.
The Debt Consolidation Option: If we have a lot of debts, we could opt for a loan that consolidates all the small debts to make a single biweekly or monthly payment according to our agreement. If you choose to do this during the execution of this plan, avoid incurring any credit at all costs.
Remember: you plan to pay off debt, not increase it. Debt is overwhelming, exhausting, and stressful. We must be patient and exercise our willpower to avoid being demotivated.
Be aware that all the well-being generated by a healthy economy will mean a better quality of life for ourselves and our family. Less worry is always synonymous with better health. May God bless your finances and help you pay off your debts.