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There are so many dos and don’ts regarding how to settle debt and ways to live without debt. Every tip and advice is good and gives everyone results based on how they put it into action. However, it all boils down to 3 practical things. Even if you do other things and don’t practice these things, you might never get out of debt or leave debt-free.
This is not like ultimate and supreme advice on how to live without debt. It is a sure way to be financially stable. A tasted and proven way to give you the financial freedom you desire and have worked hard for.
Let’s look at what debt it and ways to settle them, before we can talk about the practical ways to live without it forever.
What is a debt?
The definition of debt is simple and direct. According to an online dictionary, debt is a sum of money that is owed or due. Another definition is the state of owing money.
How to get out of debt fast
Even though I have written about how to get out of debt fast, here is a summary on how you can do it.
- Stop that bad money habit you have
- start living frugally
- pay off credit card debts and
- make extra money
3 real ways to live without debt
There are so many ways to live without debt or to say goodbye to debts. And paying off debts might look like the ultimate but paying off debts is just what it is, paying off debt. It doesn’t guarantee you will be debt-free forever.
However, these three practical things will not only settle your debt but will give a financially stable life after debt.
1. Make extra money
The fact is this, as long as you are not making more money it will be hard for you to stay away from having more debts. It’s simple logic, somehow you manage to settle your debt but you are still on the same paycheck. Life is unpredictable and emergencies you never planned for can arise. Without an extra flow of money other than your paycheck you are most likely to go into debt.
An extra income stream must not be another job. It’s typically a side hustle, which wouldn’t task you as much as your full-time job will. So you can have more than one paycheck coming to you weekly or at the end of the month.
Different ways to make extra money
There are so many side income streams to explore that you can do to make money offline and online. But with the current change in business, most of the convenient ones that you could do at your convenient time are online.
Hence, if you want to make a side income from home even while holding on to your full-time job. Your best bet is to leverage the online market. The best part about this is you don’t have to be tech-savvy before you hustle online.
A few online side hustle you can try right away to make extra cash
- Freelance writing: people get paid to write articles online. If you have a passion for writing or good at it due to work experience. There are sites online you could write for and makeup to $100 and more just with one article.
- Photography: Are you good at photography but it has just been a hobby for you all these while? The good news is this there are sites you can sell your amazing photos.
- Virtual assisting: Virtual assistants are the new secretaries and PAs now. If you have administrative skills or can just get a lot of things done really quick. Someone needs your service and you can make a good income from it on the side.
You can see the full list of top passive income ideas you can try this year fro extra money.
2. Start saving money
Saving money is not just for rainy days. It is for every day because you never know when your rainy day will come. Hence, you have to be prepared at all times.
There are always emergencies in life you can never fully prepare for. However, saving money makes you prepared for whatever may come up that involves money.
When you start saving money, you save yourself the risk of taking credit. Making it possible for you to live the debt-free life you always wanted.
How to start saving money
First, it starts with your mindset. You have to be ready to save money at all costs because you know its importance. Then you plan on how much you want to save, for how long, what method you plan to use, and have a motivation to keep you going. Which is the reason why you started saving money in the first place.
Automation is another way to go about saving money the easy way. But I will show you the best way to start saving money and why you shouldn’t hesitate to make a decision.
Best way to start saving money
There are so many ways to save money fast and with ease. Also, there are little secrets to saving money that could help you find saving money easy.
Trust me when I say saving is the best thing you can ever do to your finances. But it is not the easiest to do. However, it is doable.
Allow me to introduce to you the current best way to save you money now. This is through making investments that allow your money to grow instead of it sitting in the bank doing nothing. What if I told you with as little as $10 you can invest in something big as real estate. HappyNest makes that possible as long as you are ready to make your money work for you.
You won’t buy a house obviously with 10 dollars but you get to start growing your money in a good business that has come to stay that is real estate. Money keeps devaluing it’s up to us to make sure our money grows by making good investments.
3. Kiss credit cards goodbye
Credit cards only say one thing and that is more debt. Until you can kiss credit cards goodbye, you are not ready for a debt-free lifestyle. This means you have to stop applying for more once you are done clearing your debts.
Honestly, in the age we are now this might sound difficult. As a matter of fact, it is difficult especially if you are in an economy that getting swallowed in loads of debt is a norm. Hence, a credit card looks like a better backup plan. But remember you are going to pay for that money and you are reading this post because you don’t want to spend your life paying off debt.
As long as you are considering starting a side hustle or already making extra income and you are saving money monthly for emergencies. Saying goodbye to credit cards won’t be that hard.
And until you can say no credit card in your lifestyle or finances, you are not ready to live without debt.
Final thoughts on practical ways to live without debt
You made it to the end of this post which clearly says you are ready and willing to say good bye to debts and start living the financially free life of your dreams.
Personally, I realized the more I made money the more I could clear my debts and stay away from debts. That is why I believe so much in making extra money and saving money. I believe in making little investments here and there and allowing it to grow. Or the traditional way of saving money which for me is getting a piggy bank.
I don’t know what has worked for you in clearing your debts or living the debt-free life you always wanted. But I would appreciate you sharing your tips by dropping a comment.