20 WAYS TO AVOID DEBT

Debt is what is being owed to another person as a result of enjoying tomorrow’s sweat today. It is an acute state of your financial status.

However, borrowing money for the purpose of investment is a good debt which is capable of increasing your financial power in the near future if well managed.

For you to be free from debt therefore, the following rules must be obeyed:
1. Do not spend more money than you make or earn. Anybody that allows his expenditure to be more than his/her income is running into debt.

2. Do not spend the money you do not have through credit cards and loans. Credit cards give a false impression of security where there is none.

3. Avoid using credit cards for ordinary purchases.

4. Do not rob Paul to pay Peter. Refuse to use debt to settle debt as this doesn’t exonerate you from debt.

5. Distinguish between your NEEDS and WANTS. Do not allow the demands of your wants to pressurize you. Mixing your needs and wants together may mix some sweet poverty into your life.

6. Avoid buying anything at first sight (impulse buying). It makes you release your hard earned money so easily without proper consideration.

7. Disobey the Parkson Law which stipulates that “expenses rise with income”.

8. Buy only what you need. Never buy to show off or impress anybody.

9. Have a very strong bargaining power. Note that if it takes you 12hrs to make $500, it should take you at least 6hrs to spend it. This is financial intelligence. More importantly, think before you spend and analyse your needs before you purchase.

10. Do not allow pressure from people to allow you spend the money you never plan to spend and avoid extravagant spending on parties.

11. Draw up a financial budget to plan your spending. This is because failure to plan is planning to fail. Lead a financial budget life which is like debt immune system which attacks any virus system that shows up.

12. Be truthful and honest in your financial dealings. Do not cut corners in order not to short circuit your progress in life.

13. Set for yourself well defined financial goals. For you to go higher in life, make a goal, pursue it, score the goal and achieve it.

14. Be financially intelligent. Upgrade yourself by reading motivational books, e-books, attending seminars and training on financial empowerment.

15. Develop a good saving habit. Save something out of the littlt money you make or earn.

16. Never you expect luck to bring you huge sum of money from lottery, pool betting or other quick means. These money making process is designed to make money for the originators/owners and not for you.

17. Do not cultivate a poor mindset that your income is insufficient and the only way to survive is to borrow.

18. Invest in stocks, properties and small scale business. These are the only financial income generators. For you to be wealthy, you need at least one of these income generators.

19. Associate yourself with people of good business acumen to give you business ideas that you can start to boost your financial stand.

20. Plan your retirement to avoid been poor for the rest of your life. Do everything possible to enrich yourself when the power to do so is still there.