You must cut unnecessary lifestyle choices that are getting you in debt
Lifestyle Choices Causation of Your Debt. Most people get into the deep water of debt due to their unnecessary lifestyle choices. Once a financial advisor said, “When you got a smaller salary, you can afford the things you need and you are okay with it. But when you got your salary increased, you can still afford the things you need but you don’t seem okay with it.” This is because people tend to upgrade their lifestyle once they got promoted or got an increase. Sometime, you would say you have to reward yourself for something you worked for. But rewarding is different from putting yourself into debt due to your wants.
Lifestyle Choices Causation of Your Debt – Let’s do a lifestyle check
- Pack your lunch. Don’t change the things that do you good. If you have been packing your lunch since, why change it? Do it more often. It will save you time and money, plus you got to eat healthy rather than dining out from fast food houses.
- Upgrade only when necessary. Have you upgraded your home appliances or phone because of what is trending now? If you still have things in good and working condition, why buy new ones? Remember, anything new today will be phased out by tomorrow or the next week. If you will look for everything to upgrade, you will end up in a very, very deep debt shit.
- Dining out vs eating at home.Dining out can be convenient and fun if you have your friends and family with you. And there is nothing wrong with that. But if you do this every single day, it will be huge expenses for you.
- Wants vs needs. You should be able to distinguish which are the things you need and which are just wants. Needs are things you can’t function without like foods and clothing and medicine while wants are just things you add up in your budget but you can live without them. These include new phones and appliances, signature tea or coffee mugs, etc.
Lifestyle Choices Causation of Your Debt – Set a budget
It is easy to set a budget. The hardest thing comes in the thought that you have to stick with it. Here’s how you can stay in budget.
- Make a list. Don’t go shopping without it. The list will dictate what you only need and will keep you from getting the things you don’t need, and of course, not on the list.
- Track down your expenses. You can list down your expenses to see where you spend more and where you should cut in the following days.
- Understand your credit limit. People tend to go to the ceiling of their credit limit. The thing is, your credit limit does not give you the right to spend that much. It only reminds you that you will be paying that much on the next credit card cut off. Ask your bank to lessen your credit limit or cut some of your credit cards to help you limit your purchases.
Getting off from debt can be challenging but it will be relieving once achieved. Also enjoy reading: