The Freedom of a Debt-Free Life
For some people, living a debt-free life is just a dream, but for others, it’s a reality.
It takes commitment, self-control, and discipline to move from a life full of debts to one free of them. Although the process of becoming debt-free may not be luxurious, its end results are worth all the pain and sacrifice it may require.
Debt-free individuals experience financial freedom that allows them to live life more fully, since they do not have to be held back or stressed by burdensome debts. This is definitely a nice place to be at, and all it requires is personal commitment and determination. (See also: 6 False Assumptions About Debt-Free Living)
Why Debt Is Bad for You
One of the biggest problems with debts, especially large ones, is that they prohibit you from spending your earned money the way you want to. For example, your may want to save money for retirement or invest to secure your children’s future. However, your obligations to pay back your mortgage, a personal loan, or any other loan may hamper your efforts to reach these life goals.
When you accumulate many debts and are unable to pay them, it can also greatly affect your credit rating. Such a situation may occur due to late payments or defaulting on your monthly obligations. In addition, you may also have to pay hefty fees and penalties, which can further destabilize your financial status.
Getting Rid of Debt
When your money is unable to work to your advantage because of debts, it means you need to take the necessary action to eradicate the debts. Failure to address the issue will only slow your efforts towards achieving your goals.
Creating a budget is one of the simplest, yet most effective means of getting out of debt. Cut down unnecessary expenses in order to create a surplus in your finances. Direct the extra savings towards loan repayment. Remember that sacrifice is necessary when trying to get rid of debt. Once you have the budget in place, stick to it to the best of your ability and strive to make your loan repayments in time every month. In time, this budget should help you pay back your debt and meet all other financial obligations while giving you a clearer picture of how you use your money.
Benefits of Living a Debt Free Life
A debt free life means more money. Since you will have less monthly expenses, your cash flow will definitely increase.
More cash flow will enable you to have greater financial freedom. You might even be able to go on that vacation you have always desired or comfortably pay for your child’s tuition in a good school.
Not having to deal with debt will also allow you to invest your money for greater returns. You will therefore be able to generate more wealth and increase your financial status. You can also effectively fund your retirement to secure your future.
What are your reasons for getting out of debt?
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Summertime And The Spending Is Easy
We have vacations, graduations, weddings, just to name a few of the reasons. But you don’t have to go broke this summer trying to manage all these events and your well deserved down time. Follow these tips to better manage your cash this summer so you won’t be broke by fall.
1. Plan Ahead
This tip might not help you this year as much as it will help you next year, but I have to share it. For those of you who read my newsletter regularly, you know I value planning. Events like birthdays, weddings and the like should be well thought out and planned for so you know you have the cash on hand.
Review what you spent last year and figure out if you have any special events coming up in the year ahead. Maybe Mom and Dad are celebrating their 25th wedding anniversary. If so, you know that you need to account for a present and possibly a big bash to celebrate the occasion.
Regardless of whether the event will be big or small, you can easily plug these events into your budget by knowing ahead of time you will be doling out some cash.
2. Wait for the Sales
Do you need some new summer clothes? Wait!
Believe it or not, stores will be clearing out their current selection of merchandise for the fall line by end of June. If you wait, you could really benefit from the sales.
End of June, JCPenney has one of their biggest sales of the year with 70 to 80 percent off their summer stock. That’s a huge savings and one that’s worth waiting for.
3. Enjoy What’s Free
Fun does not have to mean expensive! Most cities and towns offer a host of free events all summer long. Concerts, festivals, fireworks displays, movie events and more are available if you do some research. Pack some snacks and the fun is even more affordable. It doesn’t have to be expensive to have a good time!
Summer fun doesn’t have to be expensive and it doesn’t have to break the bank. With some planning and willingness to do it differently, this summer could be the first summer you head into fall more financially stable. Now wouldn’t that be nice?
This article was written by Maureen Campaiola. To get more great advice from Diva Toolbox Media Diva Maureen Campaiola, visit her website at: http://breakthroughyourmoneybs.com
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