Living in today’s world sometimes it seems impossible to exist without credit. However, with the willpower, the ability to self-restrain, and the abandonment of things that are really unnecessary and just a spontaneous whim, one can live to avoid credit.
Most people take their first loan at the age of majority. The same applies to leasing, as when buying a more expensive item that does not have the required amount for full purchase, stores offer to purchase the item on lease, that is, until the item is fully paid, you will have to make a monthly payment. However, it must be remembered that in this way, the person always overpays when purchasing a product. Avoiding loans and leasing is key to planning your budget and changing your mindset, but if you can’t live without credit, consider at least interest-free credit instead of paying the high interest payments.
Young people do not think about investing in the future
For the most part, people, especially young people, do not think about investing in the future, for example when they are just leaving school, and rarely think they will want to buy a place in the future or need a car. The most important aspect of being able to live without credit is to start thinking about the future well in advance . Even if you do not need a new phone or a computer to own your property right now, you should not forget that there will be a moment when you will need something in life, but you always have the finances to buy it. One of the best ways to get such extra finances is to set up a reserve fund, or, to put it simply, savings. To begin with, a money box is enough to put a specific amount of money every day, week or month. Of course, it is not always possible to store 10 or even 5 dollars each week, but that does not mean that such savings are not needed. Even just 50 cents slowly, but still form a reserve fund balance. It all depends on the person himself – willpower, patience, how much he is willing to donate to take care of his future, because you never know when something unexpected will happen, such as an economic crisis when you need to save money.
There are many ways to save money
- First of all, when shopping with promotions, coupons, and always carefully thinking about whether all the items in the shopping cart are really needed – if not, you just have to put the excess items back on the shelves. The same goes for buying clothes, various electronic goods – it is important to understand if you really need it and you can not survive without it. The way to wait is to check – it is necessary to look at whether the product is still needed after 2 or 3 months and then evaluate whether it is just a fad or really a necessity that cannot be dispensed with.
- Second, you can save money by choosing the right means of transportation. Traveling by public and private means of transport inevitably entails costs. Therefore, it is important to consider whether it is always necessary to drive – although time consuming, walking costs nothing and is good for your health.
- Third, living is always a big expense, but there are several alternatives to save in this case as well. Of course, everyone would like to have their own private space where nobody interferes, let alone private apartments, like an apartment or a house. However, it is important to consider whether the inconvenience does not outweigh the possibility of purchasing your own apartment, for example, for a while. For young people who do not have a family yet, a good way to save on living costs is to use dormitories. A temporary option is to rent the apartment together with other people sharing both rent and utilities. There are many options to save money and build up a reserve fund, all you have to think about is not buying magazines, newspapers, books, but reading in the library or the internet, quitting frequent entertainment activities like going to clubs or bars, selling surplus items and many other types.
Creating a timely reserve fund and replenishing it on a regular basis will help you avoid taking out forced loans in the event of an emergency, such as a car accident or illness. However, it is also important to remember that once you have used up your financial reserves, you should not forget to renew them afterwards.
Another way to replenish your savings is to invest
Of course, in this case, quite good knowledge in this area is needed, because it makes no sense to invest money in stocks that are not profitable but only loss. However, today there are many opportunities to gain knowledge on how to invest better and more properly in order to generate significant returns in the long term.
It is also possible to supplement your income by finding additional work. If you have a full-time job in one place and if it is possible – enough energy (as you get older, your strength and energy are reduced) and time – you can also work part-time somewhere else:
- First of all, it will increase income,
- Secondly, a more diverse work experience,
- Third, a busy person has less time for something else, including spending money.
It is possible to avoid credit
Just think differently and limit yourself without letting go of unnecessary temptation. The best way to motivate yourself is to remember that money is already being saved for one’s own needs, for a better and more secure future. All you need to do is start changing your lifestyle, cut down on excess expenses, learn about alternatives that help you save money, and start taking action.