Debt:the bitter side attraction
This is a broad concept with both positive and negative aspects. I've observed how the ratio of negatives is higher in this part of the world so I'd be focusing on how to get out of it.
Over the years, I've lived with a special person . I'd call him Ben to disguise his identity. He is a young man with a supportive family ,a wide range of opportunities and aligning circumstances to use to his advantage. Youthful. Physically fit. Educated. Fit season( a lot of free time .And so much more.
Now ,you may be thinking, 'where are you driving at?' Or 'how does this relate to debt?' You'd know soon.
Unfortunately, Ben has faulty mindsets about money,investments and personal finance which frequently cause him to accumulate debts. He lives in the present and so does most of his income. So,( you know the story), his resources are never enough to cater for future needs. He opts in for loans every now and again to get past choke point.
Many people today are in debt for different reasons, both reasonable ,unreasonable, legitimate and illegitimate. Some people's stories of how they are in debt is simply to pay their bills and meet crucial needs,others are to achieve sustainable growth for their businesses.
How to get out of debt
Now,knowledge is not enough to cause a change,at least ,not in all cases. It begins with a desire,then along the process, necessary steps are taken to produce desired change.
How can Ben be debt free and financially responsible?
-Adopt new and positive money mindsets.
This includes:
Developing a willingness to tackle difficult problems,
Managing behaviors and decisions, optimism ,Openness to learning new things, thinking of solutions,not be clouded with problems of debt,spending less than you earn.
-Take investments seriously . Simply,learn the basis of investment and take steps to apply it's principles little by little.
-Have a budget and re-examine them. Plan your resources. Allocate your resources to necessities and wants (sparingly) before spending . -Build an emergency fund Create a budget. Seek for areas where you can start saving money. And more money. Establish a target for your emergency money. Save up any unforeseen income. These are just a few,you could share what you do in this regard. -Have multiple streams of income. This is overemphasized yet some people never take steps in this direction.
-Only Borrow what you need in tight conditions. Having applied all you need to, some pressing situations may require borrowing. In this case,count the cost and make plans on how to repay creditors before going into debt.
I hope you got value,I'd be expecting your opinions, questions, suggestions and comments. Thanks for reading.
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