Top Tips On How To Stay Debt Free

by Pam on December 30, 2016

In today’s uncertain economy looking after your money has become more important than ever, so it’s necessary that you know exactly how much’s in and coming out of your account. No one likes the idea of getting into debt as it can be stressful, demoralising and financially damaging for years to come, however, there are a few ways you can avoid it. If you’re looking to keep your finances healthy then you’ll want to check out our quick tips for feeling confident and in control of your money.

Start A Rainy Day Fund

We never know what’s going to happen be it next year, next week or even tomorrow, so it’s vital that everyone has a little nest egg to fall back on. Savings accounts are ideal places for large amounts of money such as inheritances, trust funds, and even pension payouts. The right savings account, or ISA, can earn you money just by it sitting there although be aware many have a ninety day clause, meaning you need to notify the bank ninety days in advance before making a withdrawal.

Rainy day funds are also useful in case of any unexpected bills such as medical treatment, a new car or urgent house repairs. Keep topping up your account each month by putting away a little of your salary, and you’ll soon have a healthy balance available. By saving money now, you’ll be able to afford trips away, new furniture or even go back to school without having to take out loans which come with premium payment plans attached.

Pay Off Credit Cards Immediately

Credit cards are useful when making large purchases such as booking holidays, buying a new vehicle or while on business trips but do you always need one? Unlike cash, which has a physical presence, it’s very easy to swipe your card now and think about the cost later. Many companies offer rewards, vouchers and cash back for credit purchases so don’t be afraid to use them but think carefully if it could be paid for in cash instead. Don’t wait for your monthly statement instead pay off purchases as and when they come in as it’ll focus your attention on your spending habits. However, everyone impulse buys from time to time, but credit score checks will flag any problems so go online to learn more. Unfortunately, credit card debt is on the rise but if you’re keeping good track of your finances there’s nothing to fear as they can be excellent alternatives to cash.

Buy Only What You Need

Consumerism is at its highest level since credit cards, or plastic pets, were first introduced in the 1970’s. Consider each purchase carefully and decide if you really need it, you may have something similar already or it may be cheaper elsewhere. When food shopping buy what you know you will eat and keep an eye on sell by dates as we throw away food just because we’ve forgotten when it was supposed to be eaten. There’s nothing wrong with treating yourself once in awhile, but instead of say buying say a dress every couple of weeks why not save the money and splurge on that designer handbag you’ve had your eye on?

 

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