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Having lived a debt free life for almost a year now. I picked up some habits that have helped me stay that way.
In 2018 I was in so much debt, I didn’t see a way out. 80% of my income went to settling those debts and 20% couldn’t solve my basic needs. How I cleared the debt is something else and I will share a little on that before I tell you how to live a debt free life yourself.
You can do it, just so you know. Every good thing needs practice and deliberate efforts.
How I cleared my debts
As I mentioned earlier 80% of my income went into settling debts. What I did with the 2O% was what got me out of debt.
I saved from that 20% percent, yes I did and had to cut down some basic needs. The sacrifice was worth it because I knew it would only last for a short while.
Imagine not getting the best hair done or neglecting your pedicure and manicure. Not the best beautiful days of my life. Even my skin care was at stack, oh! and I couldn’t even buy new outfits when I needed them not just for luxury. And the tips I would be sharing won’t ask you to look ugly 😉 .
After getting all the important luxury out of the way then I started using different methods of saving. This where short time saving of huge sums of money. And within six months I was over half way settling my debts. In two months time I was debt free.
Best feeling ever, I can’t explain it.
As soon as I was done clearing my debts and I could start having my pay in full. What I did helped me stay debt free.
5 easy ways to live a debt free live
The best thing about this easy ways is this, I won’t be telling you precisely what to cut down or not. Since what is not important to me might be very important to you. However, this ways are going to direct you towards living your best life.
- Don’t go back to your old life: This does not necessarily mean a bad life or bad habit, though it might be. But it means having a different attitude toward spending and money. Do not treat money like what will last forever, rather as what comes and go. Therefore spend it wisely.
- Live according to your income: This applies to all your expenditure. Lets look at the basic things like, housing, food, water, light and health care. Have you ever looked keenly into your rent? Like how much does it take from your income monthly? If it’s a lot then your pay check can’t afford that space. Living a debt free life comes with some unlovable/difficult decision. However, there is freedom in living a life of no debt.
- Plan your expenditure: If there is anything I learned about making money work for me is planning. When you sit down to make an “income plan” you find yourself able to account for every penny in a good way. When you plan you set your priorities straight and you won’t have to deal with spending on things that wasn’t necessary at a moment. You would see that you could shift some expenditure to the next week or month. So things don’t get chocked up in one month. This is my number one strategy and it helped me save.
- Have a budget and stick to it: It might affect the quality of what you get, but be honest to yourself that’s the quality you can afford. Except for exceptional things that quality is the best then you need to plan better for such things and save to get the best. To be honest it is very difficult to stick to the budget but some practice can help out. For instance before I go shopping, I make a list with the prices on it. Then I go with the exact money I need. Well everything has its disadvantages but at least I didn’t end up buying stuff I don’t need because I had extra cash on me.
- SAVE: Saving money can never be overrated and I lack the words to over emphasis it. However, it is essential for living a debt free life. It doesn’t have to be huge sums of money but little consistent sum. you could save daily, weekly or monthly. For a project, an appliance or end of year purchase. Or just for rainy days and I will always say my savings helped me live a debt free life. Read how my savings saved me from debt.
Just this past Christmas my savings covered some Christmas expenditure. I had a wonderful time.
Saving are not for rainy days alone but for everydayBroke Girls Get Fixed
Can we talk a little bit about saving?
Let’s see saving this way. You refused to spend 20 bucks yesterday though you wanted to. That thing was important but you waved it away. Today is a new day, something very very important came up and you were able to solve the problem. The 20 bucks you save on Monday helped you out on Tuesday.
My point is this, saving can safe you the moment after you saved. There are so many effective ways to save depending on what you plan to achieve. Read this, three ways to save your income that works.
When it comes to putting money away no amount is too big or small. I mean little drops of rain makes an ocean. Just make it a habit which grows to become a lifestyle.
No one ever regrets saving money. Not only is it your weapon to a debt free life but a sure part to a financially secured future.
Drop a comment if you found this helpful.