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Ten Tips to Becoming Debt Free

It really isn’t a whole load of fun swimming in the sea of debt. A lot of people resign themselves to this sea of debt.
Just remember the days when you were debt free. Those were the days, weren’t they? Don’t worry, it isn’t too hard to get back to such a lifestyle, though it would require a lot of discipline. Here are some tips on becoming debt free and staying debt free for the rest of your life:

1. Get your mindset right
Get it into your mind that you’ll never use a credit card to purchase items, and you’ll end up saving a whole load of money which would be otherwise deducted as interest charges.

2. Always keep a liquid emergency fund worth 6 – 12 months
Considering the current state of the economy, it is not going to be easy finding a new job, and it’s always a good idea to keep a liquid emergency fund so that you don’t have to borrow money to survive.

3. Stick to your budget
Get it into your head that you’ve spent a whole load of time making the budget, and do your utmost best to stick to it. Don’t go on a wild shopping spree as soon as you realize you have extra cash!

4. Be as frugal as possible
Don’t go to the extent of hunting for your food, but cut down on all those small temptations that pop up once in a while, and you may end up saving more money than you ever expected.

5. Negotiate the price
Negotiation is an art that anyone can learn. Sellers always add a big margin to their price so that they can get the amount they want even after the bargaining, so don’t lose the opportunity to save some money on it.

6. Have some self – control
Be very choosy about what you buy. Unless you think it’s extremely important, don’t buy it immediately. Wait for a day, and think as to whether you still want to buy it. At this stage, most people end up not buying the item!

7. Make debt-repayment first priority
Whatever debts you have right now, make sure that you put them at the top of the list, even if it means cutting down on all those little cravings. The interest that accumulates on outstanding debts can eat into your income.

8. If you can’t afford it, don’t buy it
Just make sure you live by this golden rule. It may seem easier said than done, but, believe me, you’ll be thanking yourself for following it.

9. Get someone’s advice
Seek a family member or a friend who is not conquered by debt, and get some tips and advice from them on how to live debt free.

10. Don’t compare yourself with others
Don’t feel sad just because the next – door neighbor has a nice home theatre system. Think about whether it’s of utmost importance, and you may realize, more often than not, that it wouldn’t be!

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