Staying out of debt can be more difficult than most people realize and debt is the cancer of your finances. To stay out of debt, you have to keep your finances under control. But there are a number of factors that can cause you to lose your grip here. You could be made redundant, and if that happens, then you’ll definitely struggle to pay the bills without borrowing money. Borrowing money can be the only step you need to take to end up in debt. Particularly if you end up borrowing from the wrong source. Luckily, there are a few steps that you can take if you want to stay out of debt and keep those finances healthy.
Save a little or save a lot, it’s your choice, but make sure you are saving something each month. This will give you a nice cash cushion that you can fall back on if you do ever run into issues with your finances. It won’t keep you afloat forever, but it could be all you need to make sure that you don’t end up in debt before you find another job or fix your financial issues. To save money easily, just think of it as a tax. It is something that has to come out of your account each month and make sure that you include it when you’re working out your budget.
Plastic Can Be Fantastic
People often dismiss credit cards as debt causers and a way to live past your means, but that’s not true. A credit card can be a way to buy something that you need but can’t afford in one purchase. Instead, with a credit card you can pay the money off gradually. If you look at a range of credit cards, you’ll be able to find the one that gives you the best deal when buying products. That way you can make sure that you are not blown away by high-interest rates. The other benefit here is that if you have a credit card, you won’t need to borrow from a more risky source.
Get Your Side Hustle Going
Ideally, you want to make sure that you have more than one income. So, you might blog in your spare time, and this can be a great little earner if you keep working at it. Or, you could explore investment possibilities. If you don’t have a lot of money to put into investments, penny stocks could be the best option for you. While they are cheap to purchase, they have a lot of potential to make you vast amounts of profit, if you sell at the right time and choose wisely.
Finally, you need to make sure that you are spending less money where possible. Don’t waste it on things that you don’t need or that will depreciate quickly in value. The key example here is buying a car. You might need a car, but it doesn’t have to be brand new. If you buy one second-hand, you can save yourself a lot of money that you can then keep for a rainy day.
*This post was contributed. Family friendly post are welcome.