8 Steps to Live a Debt Free Life

Image by Joslyn Pickens

Living a debt-free life is a common goal we all aspire to attain in our journey of life, but it’s no easy feat if you’re living paycheck to paycheck. One of the significant benefits of being a debt-free lifestyle allows you to achieve specific goals and makes it easier to save! 

How do you go beyond the debt-free wishers to actualizing enjoying life and staying out of debt?

These tips are an excellent place to start for anyone interested in tightening up their finances or getting out of debt.

1.     Clear Existing Debts:

It would be impossible to live a debt-free life without clearing the existing debts. Eliminating existing debts requires this recommendation: to list all debts and attack the small debts first while removing the enormous debts.

2.     Set Savings Goal and Review Often.

Fundbae helps you attain this objective quickly while you earn and spend while saving. You can agree that one major lesson we have learned, especially in this COVID-19 era, is the need to save and make financial plans. Therefore, set goals that you can easily attain and stick to them while you review at intervals. 

3.      Follow the 50/30/20 rule

 The idea behind this rule implies that one should spend 50% of one’s income on needs, 30% on your wants, and 20% into your savings account or towards debt repayment. Keep in mind that these percentages are the maximum you should spend. Spending less than these percentages can leave even more money for other financial goals.

4.     Change your Money Perception.

 Your perception of money largely influences your ability to manage money. Without financial discipline, one can easily fall back into a world of debts. With Fundbae, you can easily set a good habit towards savings and meet your goals easily. Money has wings and can quickly be exhausted, but if one can manage money, then financial freedom is guaranteed.

5.     Cut your coat according to your size

 Sure, you have heard of the saying before. You do not have to go for that expensive vacation, buy that dress, or go for dinner dates now if it consumes a huge chunk of your income. It is not easy saying ‘no,’ but it is something that you make sacrifices to reach your goals. 

6.     Make budgeting a habit: 

Working with a budget helps in curbing unnecessary expenses. Please make sure you only budget for essential needs, which is what Fundbae helps her customers do. It creates an allowance for miscellaneous expenses.

7.    Focus on the future: 

Reminding yourself of what you’re working toward can help you focus on the plan. Focus on what financial freedom unlocks for your future and have that be your guiding light. The peace of mind you’ll experience from eliminating your debt is priceless.

8.    Commit to yourself.

 It can be very tempting to abandon your goals and just let go, but it is also essential to think of a life without debts when such temptations come. Commit to living a debt-free life all the way.