Tips for the young to achieve a debt free life - Live life on a shoe-string budget
by Jack Hudson
(Tucson, Arizona, United State)
For most young people in the United States of America, money is tight. Most families are living paycheck to paycheck and their dream of living a debt free life seems to be well-nigh impossible. But did you know that with enough financial discipline and fiscal dedication, it is pretty possible to become debt free by the age of 35? Sounds strange at this point of time, right? Well, if you know the actual ways in which you should start leading your financial life at an early age, it is possible to rein in your finances and exercise a firm control over your dollars. Being young makes you vulnerable to a number of financial mistakes but if you're aware of them, obtaining a debt free life will no longer remain a far-fetched reality. Have a look at the steps that you may take in order to lead a secured financial life in the long run.
Learn to say "No": Instead of attending all the birthday parties of your friends and wrapping expensive gifts for them, think about the stress that you may go through when you incur debt due to whipping your plastics while making every single purchase. You can celebrate your friend's birthday later on when you've enough money to splurge. Though you may have a number of extravagant friends, you should never fall into the trap of misusing your dollars as you may need them during dire financial situations.
Focus on your goal of debt repayment: Unless you're clear enough about your goal of debt repayment, you can never achieve it. Make sure you take all the steps that are needed to get out of debt so that you don't have to take resort to further loans with which you can combine your debts into a single monthly payment. Always hold yourself accountable for each and every financial move that you take so that you don't end up blaming others for the wrong decisions that you take.
Make a frugal budget: If your ultimate aim is to achieve a debt free life by the age of 35, following a frugal budget throughout the entire month is a pre-requisite. Make a list of the necessary and the unnecessary expenses so that you can easily check how many dollars are going towards each category. Try to distinguish between your needs and wants so that you may devote your hard-earned dollars to the necessities and delay spending your dollars on the wants.
Stop using your credit cards: Unless you promise yourself to stop buying things with credit, you can never reach your goal of a debt free life. Taking steps towards debt reduction while splurging on credit is sheer wastage of time and effort. Lock your credit cards at home and stuff your wallet with cash so that you can only get those things that you can immediately afford with cash.
Irrespective of whether you're employed or living on allowances, try and save at least 10% of whatever you make in a month. Save the money in a bank and not under your mattress so that you may let your money beget more money. Head off to college with pride by following the above mentioned debt relief steps and securing a debt free life for your future.