Clicking something into your cart, swiping for groceries, snapping a QR code – these conveniences all saves us time and energy. However, they also make it that much easier to spend money without realizing it.
If you’re battling a mountain of student debt, it’s important to monitor your spending, even if you don’t have a shopping addiction. Avoiding debt is doable. All it takes is five simple strategies for you to see a ray of hope:
Maybe you’ve managed to put some money away. Wisdom dictates that you should find a financial advisor to help you invest this little nest egg in the right places. A financial expert will lay out the possible dangers and benefits of each potential investment. Budgeting is another field your advisor will be able to help you with. It is, after all, part of financial literacy.
Find a mentor and combine this with research online. There are many low-cost and even free ways to educate yourself financially. You might even find a no-interest loan scheme that will help you with the next step.
Running a Tight Ship
The first step to avoiding debt is to identify it. Want to find out how fit your finances are? You have to know how much is going in and how much is going out. Look at everything you’re throwing money at.
The majority of your budget should go to the essentials, a smaller portion can go toward the things that make you happy, and another fraction has to be for savings and paying off any debt that’s accruing interest.
Some expenses don’t demand your attention every month, but this doesn’t mean that you should neglect them. Keep an eye on them and plan for the months they’re going to pop up so you don’t get any surprises down the line.
Hell or High Water
One thing is certain when it comes to finances – you can never be too certain. Planning for the worst is the best strategy to employ as it prepares you to handle any emergency that comes your way.
You don’t even need a big chunk to get started; anything you manage to save can go a long way if you’re persistent enough. You might want to set up a debit order to make sure you don’t forget (this can help you avoid the temptation to splurge as well).
This is a big one. Like it or not, there are things you could be doing to save more money. Do you really need the latest smartphone model? Must you eat takeout regularly? There are so many simple meals you can make from home, whether you’re a master chef or not.
Cut costs by every means possible and make sure that every purchase is in line with what you want to achieve financially in the long-term. This will allow for some breathing room in your budget and may boost your savings or give you some headway in your debt repayment efforts.
A Clean Slate
Debt begets debt. If you want to avoid plunging into more of it, deal with what you have on your plate right now. You can make the process faster by supplementing your income – accept some overtime, find an online side-hustle, or start a garage sale.
Once you’re out of debt, don’t look back. Put those credit cards in the freezer if you have to. Do what you can to avoid digging yourself into another hole. In the process, you’ll develop the skills needed to invest in a bright financial future.