Panic-stricken faces, reluctance to spend even on essential commodities, high stress, and pressure levels, getting annoyed even at the slightest chance are not just signs of depression but also of a person in deep debts. Well, the way out of it very simple pay them all.
The happiness of a person paying the last installment of his loan is equivalent to that of a person who has become a father. You feel your shoulders light and mind stress-free. Imagine what will be your state of mind when you have to get into another loan to manage an urgent need? This will be a nightmare and depressing experience. So if I tell you that, there is a way to get out of debts and continue to be the same for the rest of your life, won’t you be related?
Here are five ways to get out of debts
1. Plan your savings
I start with the most shout after and preferred solution to get out of debts, savings plans. Well, this is the easiest way to get out of debts. Using your money from savings to spend on life events and emergencies instead of taking a chunk from your monthly paycheque. There are a lot of short term and long term investment plans available for you to scrutinize and embark on. Once you decide on the plan, decide on the savings and then proceed to save it on a monthly basis.
Discipline is very important when you start your savings plan, no matter what the amount allocated for the savings should not be used for any other purposes. The amount saved should be used only for your goal when you can save from those savings to start the cycle again to earn better monetary benefits.
2. Record your mistakes
Nobody likes to time travel to visit the mistakes made in life. But I am not going to ask you to time travel but create a documentary about various financial mistakes you have made or make an entry into your diary whenever you make a mistake. This will help you in two ways:
1. It will protect you from committing the same mistake twice.
2. It can also be used to bail you out of precarious situations simply to help you in finding a way to get out of debt troubles.
3. Secondary income
The best way to increase your cash flow and to save more money is to create a source of secondary income. Choose your secondary income source based on your passion. For example, if you are passionate about writing, then you can choose content development, article writing as a secondary profession. Writing can be done from home and it will also quench your passion. It will also help you as a stress buster and when money starts to come in from the secondary income you can breathe a lot easier than you were before.
When you choose a secondary income source, make sure it is not stressful and laborious. You already have your primary job to get stressed and overwork. So take a lot of care when you choose your secondary income source.
4. Invest your way to the top
A business needs assets to increase its valuation similarly a person needs investments to increase his standard of living. Right investment at the right time in the right place will yield you right results. The easiest way out of debts is to climb the ladder of investments. Plan your investment mix correctly. Investments to aid you during your retirements should be the first and foremost investment you make.
DCA provides a lot of investments, 529 plan which is tax-free can also be chosen to make investments. These may come to your aid when you need them to.
5. Battle against boredom
A study says people tend to spend more when you are bored. The best way to put it is
“An ideal mind is a devil’s workshop”
It is always better to keep yourself engaged in some activities. When can you be active by paying the least amount of fees why not? You tend to splurge money when you a bored and you start to purchase something to kill time. For example, you may decide to purchase Xbox to kill time until your girl returns from work. Instead, you can choose activities like jogging, badminton which are comparatively cheap to kill your time. You can enjoy the twin benefits of fitness and stress relief.
To live with or without a debt is in your hands. It is always better to live a life without any financial burden. This is life without a financial burden is not impossible but is possible with little planning and wise decisions. Decisions for a lifetime after all we are not going to be working all our lives when we decide to hang our boots make sure you hang it with pride and without any regrets.