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How to be debt-free

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@tomlee
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You'd agree with me that one very discomforting thing in life is the feeling of knowing that you are indebted to someone. And I'm saying this from experience and every person who at one point or the other have borrowed someone cash would confirm that such condition is not a good one. Yes, there comes a point in life when you just have to ask someone to give you a helping hand because of some financial concerns around you. But we can always avoid borrowing, loaning or being in debts.

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I'll be discussing briefly under three headings factors that could help you stay out of debts. Being debt-free is a sweet experience and feeling.


Don't live above your means: In the quest to be like some other person, some individuals have carried themselves into indebtedness. Similarly, many persons have accumulated so much debts just because they want to live a luxurious life which is way above their earnings. It is pertinent that we consciously live within our earnings and not try to live above it. Say no to trying to impress people..

Spend more on assets rather than on liabilities: Assets are those things that are durable, sustainable and can be used to generate income as well. Whereas liabilities are those things that tend to frequently take money out of your hands. When you constantly spend your earnings on liabilities, there's no how you will not run into debts. But when you consciously buy assets, more money will come into your hands. This is why it's wise to always buy stuffs that are durable even though there are expensive rather than going for cheap things that won't last long.


Make investments: Very importantly, making investments is very key to staying out of debts. A lot of persons fear to make good investments rather they believe in spending first before saving. Investment is what will always generate cash inflow for you thereby helping you stay away from borrowing or taking loans.


Overall, it is the ability to control, monitor and effectively utilize funds that will help an individual stay debt-free. Also, avoid incessant and unnecessary borrowing of funds. Always try to live within your means while also ensuring to make good investments ahead of tomorrow.

I hope you found this piece useful.

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