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Money rules you need 4 - Don't get into debt

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I started a series to share four money rules we need. There may be many other rules but I decided to share the ones that affects more. I've been able to cover up three rules which you can find in these links below πŸ‘‡

The number four rule state that you:

Don't get into debt

Asking for money when you're in lack is fine until you find yourself asking for more than you can pay back. It's fine until you see it as an avenue not to work for yourself and earn for yourself. Asking for money is also fine until you earn and try to cheat on the person so you don't pay... Don't get into debt.

Another story to share... This is kind of like what's going on in the market today where people are trying to buy the dip while others weep over their lost money. I heard a story about a young guy who saw the opportunities in crypto investments but didn't see the dangers and risk involved.

He decided to invest but he didn't have enough money to make a better investment (he was told he would earn bigger if his investment were big). This particular guy went off to the bank, processed papers to get a loan, a very good amount of loan and he invested all of it in a coin.

Too bad, he lost all that money and he is still paying the money till date. There's nothing you would tell him about crypto that he would smile at you, he hates the thought of it.

Getting into a debt can be very easy sometimes if you don't live below your means like I've written in my last post. If he had invested what he had, things would have been different.

How do you not get into debt?

Try budgeting your money and give preferences, get what you need and save the rest for the future.

Avoid buying extremely expensive stuffs, there are way cheaper things to get and you'll still be satisfied with it.

Invest in what you know and invest only your spare money, take loans on a very good basis that you'll be able to pay back if anything happens to the loan before profit.

Don't develop the habit of asking for some money, to pay back later... Not all find it easy to pay back, try to manage what you have.

If you've already had outstanding debts, it's best to pay them off before investing to grow your money. It's important to note that "It is unwise to be an investor who owes a lot". Some people are actually fond of doing this.

There are other ways you can stay away from getting into debt, just be sure to avoid debts no matter what. Debts tend to make our money grow very slow or not even grow at all.

Thanks for reading!!!

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