Habits That You Need to Adopt for a Debt Free Life
We’ve lately been covering a lot of valuable information around debt traps and how to avoid them on our blog lately. In this article, the team at Incomet has highlighted some habits that you can adopt for a debt-free life.
We all know that the burden of debt is tough and unfortunately something that is now becoming more common than ever. Once you take up the task of trying to make your life debt-free, everything around your financial life has to be re-evaluated.
Tip Number 1: Emergency Saving Fund
It is widely considered to be the number 1 fund you should be having. A financial cushion can offer to save you in the event of an unanticipated expense that can otherwise rock your financial life or put you in debt. The thumb rule is to set aside at least 4-6 months’ worth of living expenses.
Tip Number 2: Breaking The Paycheck to Paycheck Cycle
The term of living from paycheck to paycheck applies to a good chunk of the population. Try breaking away from this cycle by having passive income which is not at all related to your primary source of Income. The Incomet SEP can be a great place to begin, once you have proper knowledge of the stock market through the guidance of India’s best stock market trainers, you’d be able to make your money work for more money!
Tip Number 3: Setting Goals
We’ve highlighted the importance of this point across several articles on our blog before. There is no result without the goal being set and an intention being there to match this said goal.
Tip Number 4: Budgeting
Budgeting is a crucial tool to achieve a debt-free life and to make sure that your life stays debt-free! You may also try out the various money-saving challenges that we’ve highlighted on our blog for free. However, budgeting is not about just saving money, but also getting better insight about the flow of your money and then allocating proportions of your income towards various expenses in life!
Tip Number 5: Use Cash
This might come across as an unusual tip, which it is! But it is super effective too. See, the ease that modern finance apps bring to your life cannot be denied. Right from making payments to making investments. The investments part is fine, but the thing with expenses is that these makes make it way too easy to spend money.
You might be going about your day, shopping and scanning QR Code left, right, and center. At the end of the day when you have a look at your band balance, you get shocked! If you had set aside an amount of cash for that day and paid every merchant with cash then you would have physically felt the money depleting from your wallet. Of course, this sounds tedious but it is a tip that can do wonders for people who have the knack of overspending when this has been made too easy for them!
Tip Number 6: Clear Past Debts
Of course, the debt-free approach cannot begin without the intent of clearing the past bills first! Work towards clearing your past debts little by little and couple this with the other tips we’ve outlined in this article. Ultimately you’d be leading a debt-free life for sure!
That’s it from the team at Incomet for this article. See you in the next one!