We all love the idea of becoming DEBT-FREE, the feeling of liberation and freedom from unnecessary debt –ah, the best feeling ever.. that you are the one in-charge of your lifestyle upgrade. Everyone had unique motivation for working hard towards debt freedom, and here’s 5 smart ways how to escape from bad debt:
1. Learn to Budget.
The first step to creating a budget is to know what your spending habits. Take a few minutes this week and internalize your bank statements and receipts from the last month. You also need to know exactly how much money you’re making. As Dave Ramsey says, “a budget is telling your money where to go, instead of wondering where it went.” Try useful apps like YNAB: You Need a Budget to break the “waiting-for-paycheck” cycle.
2. Sell Things.
Set up a yard sale. Sell them online. Nowadays, with the help of Social Media sites, you can easily sell your unused items. There might be someone looking for it. Sell stuff were no longer using and put it towards debt. Ask yourself this question, “What can you sell to raise extra money to apply towards your debt?” Hit two birds with one stone: declutter and reduce your debts.
3. Earn Extra Money using your SKILLS and Talents.
It’s time to be creative and think about your talents and gifts and assess, “how you could use them to make extra money?” Know how to make websites, make one for your aspiring blogger friends for a fee. For more ideas, you can read Ten Ways to Make Side Income.
4. Change Habits.
Time to avoid the following habits:
- Impulse spending
- Keeping up with the Joneses
- Retail therapy
- Paying bills late
- Using credit cards like free money
Recognizing our bad financial habits puts us on the road to correcting them, so don’t be afraid of accepting the reality. Make changes wherever and whenever you can. You won’t regret it.
5. Put your bills on auto-pay.
Always remember that saving time is saving money; auto deductions mean you won’t have to worry about late fees. Time to ask your bank about their facility on auto-pay. No more worries!
For more money tips and financial management ideas, get a copy of I Wish they Taught Money in High School at all major bookstores nationwide including National Bookstore, Fully Booked and Powerbooks. You can also purchase it online via www.lifestyleupgrade101.com/shop. We deliver for FREE nationwide!