As human we cannot avoid to spend or make money in our daily lives because everything we do revolve round money. We need money to raise our family, establish business, transport, communicate and even feed. The issue of money cannot be denied nor ignore because without its existence, life would have been miserable to all.
At one time, we’ve all being involved in debt rescued or drowned in it. Debt is a national, social and family enemy that we all must run away from. We cannot run away from debt but rather learn the techniques in managing debt and free ourselves, loved ones and families from fear and embarrassment. If you must stay out of debt, then your commitment is needed to make this journey stress-free.
We all have different definition for debt because we all have different experience towards it.
Debt management is about one thing, you controlling your money. Debt is that which is owed, usually referring to assets owed, but the term can also cover moral obligations and other interactions not requiring money. In the case of assets, debt is a means of using future purchasing power in the present before a summation has been earned. Debt is created when a creditor agrees to lend a sum of assets to a debtor. In modern society, debt is usually granted with expected repayment, in many cases plus interest. Historically, debt was responsible for the creation of indentured servants.
An indentured servant is a laborer under contract to an employer for a fix period of time, typically three to seven years, in exchange for their transportation, food, clothing, lodging and other necessities. Unlike a slave, an indentured servant is required to work only for a limited term specified in a signed contract.
Being familiar with your own definition about debt and mine, then we will go through the numerous ways of staying out of debt for the rest of your life. Debt free is a thing we all anticipate in life. So, let’s study together.
1. Understand the power of money. A proper understanding of our destination will make our journey stress-free. Understanding is the knowledge that somebody has about a particular subject or situations.
What really is the power behind money? This might be the question in your mind. Money is one powerful force in the planet earth today, that controls a lot of people. Money is far beyond the understanding of many, that’s why its lasting strength fails in the hands of people. Money is a currency because it flows at a very high frequency. It should not be kept too long at a particular spot because of its potency and if subjected, its value, portability, durability will depreciate. If you can control money, then debt management shouldn’t be a threat to your existence.
2. Have a budget. What does budgeting have to do with debt management, you may ask? All the countries in the world, religious organizations, social organizations etc. all do what we are discussing on budgeting.
Your budget will definitely make or break your finances, family and business. So plan with care. A budget carefully planned will help take care of expected and unexpected expenses. Budgeting is a path to wealth creation but a failed budget will definitely live you indebted.
3. Have a saving habit. Saving should be a habit that we all must have and keep forever. You don’t need a certificate to learn how to save but building a saving culture. Savings should be continuous, is a decision, discipline and can be achieved by having a bank account.
Be it business, personal finance or family, it is only saving that can redeem one from debt. Savings prepares you for the day’s challenges, structure your finances and gives a guaranteed future. If you do not believe in saving, then prepare for money problems, which will finally creeps into debt. There is no organization out there that does not practice this principle. It will be good if couples this issue regularly
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4. Invest wisely. Investment is an open field for everyone but not everyone knows how to invest. A wrong step can lead you to temporary or permanent financial distress in life. When investing, hold on to assets and not liabilities as some do. Assets are those properties owed or intellectual possession that can generate income to the company or an individual. Liabilities as an investment, put debts into your pocket or the company’s account. If you must stay out of debt always think of assets.
I’ll still want to recommend to you, the services of an investment expert because what you do not know is far greater than you.
5. Avoid greed. Greed, greed, greed.
Greed the oxford dictionary say’s it’s a strong desire for more wealth, possessions, power etc. I will also say that it is the fear of shortage. Greed will never take anybody higher but rather breed bankruptcy. When you want everything at the expense of others, then you will get nothing. Pause for a while, think and ask yourself, those things you got forcefully did they last?
6. Stay healthy. Your health is your wealth and you are what you eat are all wise sayings. In the making of money and staying out of debt, your health should be given utmost attention. No matter how beautiful a car may look, if the engine is not in a proper condition that car is as useless. So also, the health of a man is the engine to his prosperity or poverty. The number one priority or budget a man can take in life should be his health. The secret to living a relatively healthy and disease free life has to do with eating a balanced diet and having enough rest and exercise. Adhering strictly this steps will guarantee you a debt free life.
