Staying out of debt isn’t something many people can say they are doing. While debt can be useful in some cases, for instance, when you have a credit card to make big payments and this offers protection, as well as help you to build up your credit score. However, for the most part, debt is stressful and you want to get out of it as quickly as possible.

Assuming you’re not in debt right now, and you never desire to be in it, here are the key ways you should look at to stay out of debt. Remember, if you are in debt, all is not lost. Speak with a financial advisor and they will be able to help you on the road to paying off your debts and living a happy life!

Only Use Your Credit Card For Necessary Purchases

If you have a credit card, don’t abuse it. Only use it for necessary purchases, such as an appliance breakdown you weren’t expecting, or even a holiday for the protection. However, make sure you have a plan to pay this purchase off ASAP, and always aim to put down more than the minimum payment.

Spend Less Than You Earn

The key to staying out of debt for life is to spend less than you earn. You can’t possibly know if you’re spending less than you earn unless you have a budget, however. Create a budget that works for you, ensuring you’re directly your money in the right places for bills, savings accounts, and giving yourself a little pocket money to spend. If you spend without looking at your bank balance and just wing it, like many do, you could be soon looking at debt relief to rectify your behaviour. Make sure you consider events that cost money in advance too, so you are never unprepared.  

Build Up An Emergency Savings Fund

Having an emergency savings fund is something everybody should work towards. It’s up to you how much you have in it, but the more you have, the more protected you are.

Make A Shopping List And Stick To It

Never, ever go shopping without a list. Stick to your list, only buying what’s necessary, and make sure you don’t get roped in by all of the supermarket tricks!

Use An App

Apps are a great way to begin tracking your accounts and expenses in real time. They can show you pie charts of where your money is going, how much money you have in certain accounts right now, and give you helpful tips and advice. You could write down everything you spend the old fashioned way, but an app is more attractive and quicker!

Find More Ways Of Making Money

Rather than taking out a line of credit to purchase something, find more ways of making money instead. Can you do a little overtime to afford the thing you really want to buy? Can you sell something you no longer use? Be smart!

Staying out of debt can be done!