Any endeavor starts with a decision. If you want to live a debt free life, you need to decide that enough is enough and that you need to do something about your finances. You decide that your debt is your responsibility and only you can solve it. It is making the decision to improve your lifestyle – specifically your choices on where your money should go to.
There are a couple of important decisions that will lead you towards a debt free life. The general resolution that you will have to make is to never acquire debt again. It can lead to a couple of decisions about how you will start spending your money. One is to save for the rainy day so any emergency situation will not force you to borrow money. By building your reserve fund, you are actually creating a safety net to fall back on. This can be used in case your primary source of income is cut off or compromised. It can also be used in case an accident results in an expense that is beyond your usual budget – like the car breaking down or a sudden illness. You can grow your income or cut back on your spending to make room for your savings.
Another supporting decision that you can make is to stop using your credit cards. It is one of the biggest causes for debt in the American household. It gives you the ability to buy things that you cannot afford at the moment. In relation to deciding not to use your cards is a promise to pay only in cash.
A major decision that you can also make is to live within your means. This, like not acquiring debt will lead to a lot of minor decisions. One of them is to live on a budget. This is a helpful tool that will inform you of how much you can afford to spend. You can also decide to make smarter spending choices to help with your intention of living within your means.
To get to a debt free life means you should also make a decision to not care what if you do not go with the norms of society. We have evolved to become one of the most materialistic generations in history and this has to change. That will keep you from buying popular gadgets that you do not need. It will also keep you from buying luxury cars because society judges the success of people by the things that they use.
Ultimately, the decisions that you will make will depend on what is important to you. Be wise about everything related to your finances. If you want to keep yourself from potential financial troubles, you need to make the right decisions that will keep you away from it and into a debt free life.