Got Debt? Here’s How to Clear It.

Money is one of those resources that we can hardly get enough of. Whenever the discussion on
managing money takes place, it basically boils down to your savings and expenses. However, what you
earn and what you spend are not the only factors that count. Your attitude on how you approach these
matters also counts for a lot.

It’s quite easy to get stuck in debt, but getting out of it might require a little work. Here are a few tips to
help you build a better money management strategy that can eventually help you lead a debt free life:

Set Easy-to- Follow budgets

When we make our budgets, we tend to make very strict and stringent plans. While this works towards
helping us save quite a bit of money, it can also be very hard to follow, especially in the starting. If you
impose a hard budget on yourself, right in the beginning, it might just end up in failure. The easier way
to do this is to begin by monitoring your spending habits. Identify the unnecessary expenses and rule
them out. The key is to keep on reducing unnecessary expenses each month.

Stop living Paycheck to Paycheck

Many of us have the habit to spend beyond our means, via credit, since we can pay it back in the coming
month. While there’s nothing wrong in using a credit card to make expenses, or taking something on
EMI, not keeping a tab on it can be to your own detriment.

When you allow such spending habits to take over, you unknowingly get yourself into a vicious loop
where you keep spending beyond your means, and utilize your current month’s salary to repay the
expenses you made last month. As a result, you are short on funds for the remainder of the month.
It is time you utilize your money more prudently, and have ample funds in your account to make
expenses in real-time instead of doing it on credit. In other words, be financially able till your next
paycheck gets credited to your account.

Spend Smart

With smart budgeting, you’ll learn to spend smart as well. You don’t need to give up all your creature
comforts and live a frugal life, but it’s advisable that you think twice before making any purchase.

Differentiate between what you need and what you want; whenever you want to buy something that
you’re not sure about, give it 10 to 15 days. If you still want to buy it after that period, go ahead and buy
it.
Plus, whenever you buy something, explore your options, compare prices, and look for discounts and
sales. Another important point to remember is to rein in the usage of your credit card. If you have other
means to pay, use them. Don’t use your credit card unless absolutely necessary.

It might take a little hard work to get out of debt, so give yourself a ‘pat on the back’ once you manage
to do it. Further, be careful from that point in time to spend wisely, and not incur debt again.