Tips for a debt-free life
Here are small steps to take towards financial freedom...
More than half of people in South Africa spend at least 40% of their income on repaying debt, the latest survey by DebtBuster has revealed.
Debt can be crippling, especially if not managed well.
One of the biggest challenges about debt is that, in most cases, it comes with interest, causing you to lose more money.
Having a budget will help you monitor your money. Without a proper record-keeping method, a lot of money is lost, and you might get into debt unnecessarily.
Below are tips to help you live a debt-free life:
READ: Expert advice: Using debt to invest
Living a debt-free life starts with intention
A debt-free life starts with a desire to be without debt.
You also have to make a commitment to live a debt-free life and stick to it.
Make peace with how much you have
It is important to stick to what you can afford and resist the temptation to live beyond your means.
Avoid buying things you don't need
Avoid buying things you don't need on credit. Rather, save up for them, and you will thank yourself later. This will help you save on interest.
Make goals
Have short and long-term financial goals. If you need to purchase something but don't have the money right away, plan!
Many stores offer lay-bye options. If the item you want can be purchased by lay-bye rather than purchasing it on credit, choose lay-bye.
Be accountable to someone
Have an accountability partner. This can be your spouse or anyone you trust with your finances.Work with a financial advisor
A financial advisor will help you look at your current financial situation and help you work towards financial freedom.
READ: More than half of South Africans spending 40% or more of income on debt, survey finds
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