Sleeping peacefully, falling asleep easily, walking among people with the confidence of someone who owes nothing to anyone, and having the peace of mind that everything in the home and what we wear is ours, are the consequences of living frugally.
One of the great plagues of this age is the accumulation of debts: we owe where we live, what we eat, what we wear and what we move in; we owe our education and what we have fun. There are more and more ways and means to obtain a credit or a loan in order to have almost anything, and every day there are also many more people who have financial commitments for years and years of our lives, without knowing if tomorrow we will have work or health to fulfill them.
The general advice is that we avoid debt as one avoids a disease such as cholera or a similar illness. If we have to contract any debt, that is to acquire a property that can provide us with an income, avoid unnecessary expenses or to solve an emergency, but no more. The point is that acquiring a debt and living with it breathing down our necks has been the most common issue among us and the origin of much suffering.
If it is your case that debts are already “hanging” you, please take a few minutes to read these suggestions; more than one will surely help you start your debt elimination process:
Make a list of each and every one of your debts
If we are going to eliminate the enemy, it is necessary, first of all, to know him thoroughly. Write down in order of payment priority each of your debts, those that generate a high interest payment, collection pressure or some other reason why you should pay it off as soon as possible.
Make a budget of your expenses
In all honesty, check your net income, what you earn and, above all, take a look at how you are spending that income. Many, by doing this exercise, we see that we have good income and that our big problem lies in the mismanagement we do of them. Get up to speed with yourself and determine what you are spending your money on, check in which items you can cut or avoid entirely. For example, these next two months demand that you not buy any clothes or another pair of shoes, cancel cable service for the next six months, or those vacations scheduled for this year. Remember: there are necessary, indispensable expenses and others that simply are not. Learn to distinguish which ones fall into the category of essentials and which ones are vanity.
Make a debt payment plan
Very good! We are doing very well with this job, now you have two lists, that of your debts and that of the money you have. What follows is matching accounts: if you have been able to reduce two or more expenses from your budget, you are going to dedicate that money solely and exclusively to the payment of debt as follows: 50 percent of the amount you determined will be to pay the debt that You put in number one, and the next 25 percent for debt number two and the remaining percentage will go to debt number three. This will be until you manage to pay the most urgent, without neglecting the rest of your payments. Maybe your first debt requires 100 percent, do not hesitate and do it! As in everything worthwhile, discipline and perseverance are the keys to being successful.
Do not incur more debt!
As you settle debt for debt you will regain peace of mind and many issues will begin to improve in your daily life; some even lose weight. My dad used to say that whoever is not capable of governing his body and his wallet, well deserved has to do badly. I believe that when we have become debtors and are able to pay and settle our debts, no matter how long it takes, we will become stronger, more determined and reliable people.
From my personal experience I want to share with you that I was forced to look for an extra job, sell some objects and forget about the soft drink (the soda), the daily food at the inn and some other small sacrifices. I am a few weeks away from paying off all I owe, it has taken me a long time, years I would say, there have been months in which I have not been disciplined or constant, but I have not abandoned the determination to be debt free. Unlike years ago, today I organize and spend my money better and that simply makes me feel much better; soon you will feel that way too. If this article was of your interest, surely these two will interest you:
10 Ways to Save Light at Home Or Read: Healthy Family Finances Amid a Global Economic Crisis