How to stay away from Debt?

We always have been thinking and planning to fulfill our desires somehow. The wishes can be beneficial, or it can be just short-term want that keeps you happy for a brief period of time. Here are some ways to fulfill your desires and wants without trapping in debt.

1. Pay Yourself First - 

 There is a very big misconception in today's Gen Z mind that invest your money and grow your wealth. But people forget to pay themselves first. It is very important to keep a small amount of money in the corner after getting a paycheck or pocket money. For example - A student receives Rs. 10,000/- every month from his parents for monthly expenses, then he has to keep Rs 2000/- aside and consider Rs. 8000/- as pocket money. This will help him save money.

2. Have Patience - 

 Nowadays people don't have time to think twice before taking a decision and sometimes that decision makes them pay a huge amount. Therefore, if anyone wants to buy anything take time for at least 7 days and then decide if that product or service is needed or not. This helps people to eliminate impulse buying.

3. Use Credit Card - 

Credit Cards are very dangerous tools in personal finance. It can give you benefits but on the other side, it is a trap that can ruin anybody's life. While using credit cards one has to take care that the amount is already saved before swiping it. It helps to balance the budget and does not disturb the finances. Always try to take No Cost EMIs as one doesn't have to pay any interest on that.

4. Loans - 

Everybody in today's life wants a good lifestyle and to show off their status to the world. But many people who show off are actually wealthy? This question arises because not everyone buys a Sports Bike, Luxury Car, or Bungalow in Cash. Loans have been part of the purchase in that. Loans are not always a good idea. One should take a loan while purchasing Assets, not Liabilities. If the person taking a loan for education, business, or home then it is acceptable but other than that people are paying additional money in the form of Interest without any benefit.

5. Can you buy it Twice? -

Nowadays, everyone wants expensive phones and bikes/cars, and just for the sake of showing off, people get into debt for the depreciating asset. An individual always has to keep in mind that if he/she wants to buy anything they must have enough money so they can purchase the same product twice without disturbing their budget. I know it will take time to save money but trust me it will help you.

So here are my five ways to stay away from debt, I hope you found this blog helpful. Please comment on what you want in the next blog. 

Thank You