Hope you have read my previous article on this topic. In today’s post, I just thought of sharing some more interesting facts regarding this matter. Do take a glance below.
Becoming debt-free may seem like a herculean task for some individuals. But, believe me, getting out off debt is not at all a rock hard task. You can easily become debt free but, first you must stop doing things which accelerate the “getting into debt process.”
What you shouldn’t do when in debt
Check out the things you should avoid if you want to ditch debt soon:
1. Borrow from retirement fund
If you are thinking of using your retirement fund to pay off your dues, then stop immediately. It’ll leave you broke later in life.
Even worse, you may get heavily penalized for withdrawing money from your 401(k) retirement account.
So, first think how you want to spend your gray hair days, and then decide whether or not to use the retirement fund to repay dues.
2. Purchase luxury items
You can breathe in the fresh debt free air if you stop spending on luxury items. If you continue purchasing luxury items (such as an expensive car, jewelry, or house) while in debt, it’ll put unnecessary pressure on your pocket. And, hence getting out of debt would seem a rock hard task.
3. Keep cable TV connection
There is no point in keeping both your cable TV and the internet connection (especially when you’re in debt) and waste your precious dollars. You can watch your favorite shows online once the show airs. Moreover, you can also grab some really good web series streaming online.
4. Go partying with friends
You cannot afford to go partying with friends when you’re broke. Use that money to pay off your dues first, which you would have otherwise wasted by partying with friends. Instead, find out some less expensive sources of entertainment.
5. Take up costly hobbies
Picking up a new pricey hobby such as aviation, sky dive, ballroom dancing, scuba diving, or mountain climbing (unless you’re making money from it) when in debt is not a smart idea. If you’re good at photography or art and crafts, you can sell your crafts or photographs to get some extra cash and be free from your financial obligations.
6. Visit Starbucks regularly
Most of us have this habit of visiting Starbucks on a regular basis. But, do you know that you can save quite a lot of money if you ditch the Starbucks? Yes, it’s true. So, avoid visiting Starbucks and make your favorite latte at home so that you can save more money in the long run.
7. Go on expensive vacations
When you have loads of debts to pay off, you can’t afford to enjoy an expensive vacation. There are more important things like paying bills, mortgage, home and car repairs, and so on, which need more attention at this point of time. However, you can always go on vacations once you’re debt-free.
8. Quit job without having another one
Quitting your present job without having another one in the queue is risky. With having a job lined up, you won’t have a gap in pay.
9. Spend time doing unproductive work
Doing something that you cannot achieve right now is not at all a smart move. For instance, thinking or spending time behind opening your business when you already have huge debts is not a good idea. By doing so, you’re simply wasting your time, money, and energy.
It’ll be more productive if you spend time on thinking how you can repay debts. Or, you can think of taking up a part-time job so that you have extra money to clear your dues.
10. Lie to your spouse about your present financial condition
Keeping financial secrets in your marriage causes divorce in most cases. So, it’s advisable that you shouldn’t hide any financial matter from your spouse, especially when you’re in debt. Sharing your financially upset condition with your husband/wife will help you deal with the matter better.
Do you have any other points to share? Feel free to comment below.